MN SF4298

Establishes a productivity investment tax credit for employers purchasing new or used manufacturing machinery and equipment in Minnesota that results in improved job quality or increased output of at least 5 percent.

Credit equals 20 percent of qualified purchase costs, limited to 50 percent of the employer's tax liability for the year, with excess credits carried forward for up to 10 years.

Qualified purchases include machinery, equipment, and necessary software for manufacturing process upgrades, but exclude replacement equipment, installation costs, warranties, sales tax, and costs used for other tax credits.

Requires employers to submit annual reports by February 1 documenting that purchased equipment achieved the required job quality improvements or output increases, with $100 fine for late filing and potential credit revocation if improvements are not demonstrated.

Applies to taxable years beginning after December 31, 2021, with reporting and revocation provisions remaining in effect through dates to be determined.