MN HF3601

Converts the Greater Minnesota Internship program from a tax credit system to a direct grant program administered by the Office of Higher Education through eligible institutions, effective January 1, 2017.

Eligible students must have completed at least half their degree credits and work at least 8 weeks for a Greater Minnesota employer paying minimum wage for at least 16 hours per week; employers receive grants up to $2,000 per intern or 40 percent of compensation, whichever is less.

Establishes $2,000,000 annual cap on total grants allocated, with office determining allocation criteria including geographic distribution, and prioritizing allocation on a first-come, first-served basis.

Requires annual reporting to legislative committees on number of grants awarded, interns employed, and program administration costs, plus a February 1, 2017 report analyzing program effectiveness in hiring interns and achieving permanent employment outcomes.

Repeals the existing tax credit under Minnesota Statutes section 290.06, subdivision 36, effective for taxable years beginning after December 31, 2016.