Border City Development Zone Tax Incentives

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

• Establishes a homeowner incentive program allowing homeowners who purchase, construct, or substantially rehabilitate homes in zones to receive property tax exemptions for up to five years and income tax subtractions up to $500,000 for married couples and $250,000 for others.

• Allows businesses in zones to claim income tax subtractions up to $500,000 per year for ten taxable years on income derived from business or investment activities within the zone.

• Requires cities to adopt written development plans addressing economic conditions, viability, community support, and relationship to broader city revitalization before designating zones, with zone designations limited to 15 years maximum.

• Establishes that state revenue reductions from tax incentives count against each border city's available allocation under section 469.169, requiring consultation between cities and the commissioner of revenue to ensure sufficient allocations exist.