MN HF3939

Authorizes five Minnesota border cities (Breckenridge, Dilworth, East Grand Forks, Moorhead, and Ortonville) to designate development zones and offer property and income tax incentives to businesses and homeowners in those zones.

Establishes a homeowner incentive program allowing owner-occupants who purchase, construct, or substantially rehabilitate homes in designated zones to receive property tax exemptions for up to five years and income tax subtractions up to $500,000 for married joint filers and $250,000 for others, limited to ten taxable years total.

Allows businesses in border city development zones to qualify for property tax exemptions, sales tax exemptions, and a business income subtraction of up to $500,000 per taxable year for ten years on income derived from zone locations.

Requires cities to adopt written development plans addressing economic conditions, viability, community support, infrastructure needs, and regulatory burden reduction, with zone designations limited to a maximum duration of 15 years.

Establishes allocation caps tied to section 469.169 for tax reductions and requires ongoing consultation between cities, the commissioner of revenue, and the commissioner of employment and economic development to ensure sufficient allocations and track state revenue impacts.