Economic development incentives

Minnesota

Midwestern US

Tax Credits

Research and Development Tax Credit: A non-refundable tax credit equal to 10% of the first $2 million in eligible expenditures and 2.5% of eligible expenses above $2 million is available for qualified businesses engaged in R&D activities. Credit may be carried forward up to 15 years.

Grants & Loans

Minnesota Job Creation Fund (MJCF)– Twin Cities Region: Provides up to $1,000,000 in grant funding over a 5-year period for companies locating in the Minneapolis-St. Paul Metro area. To qualify, the company must invest a minimum of $500,000 in qualifying property improvements. Grant awards can be awarded up to $3,000 per new job-based project average wages or up to a 5.0% rebate on real personal property improvements. If a company invests at least $75,000,000 and creates 250 qualifying jobs, the maximum award is up to $2,000,000.  

Minnesota Job Creation Fund (MJCF) – Greater Minnesota: Provides up to $1,000,000 in grant funding over a 7-year period for companies locating in the Greater Minnesota area (non-MSP metro). To qualify, the company must invest a minimum of $250,000 in qualifying property improvements. Grant awards can be awarded up to $4,000 per new job-based project average wages or up to a 7.0% rebate on real personal property improvements. If a company invests at least $25,000,000 and creates 75 qualifying jobs, the maximum award is up to $2,000,000.  

Minnesota Investment Fund (MIF): Provides loan financing to a company via the community in which the project will occur. The MIF assistance is based upon capital investment and the creation of new full-time equivalent jobs within two years. The funds are granted to the City and then provided as a loan to the company. Forgiveness of the State portion of the loan may occur if the company meets certain capital expenditure, job and wage requirements. The city has the option to forgive their portion of the loan (40% of the award or up to $100,000). MIF funds and matching funds may be used to pay for equipment costs incurred after a formal award letter has been signed by the Commissioner of DEED. Formal resolution and City Council action are required for approval and use of these funds. The program award maximum is $1,000,000.

Special Zoning

Border Cities Enterprise Zone Program: This program provides tax credits to qualifying businesses that locate or expand in the cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, or Ortonville.

Tax Exemptions

Greater Minnesota Job Expansion Program:  Provides sales tax exemptions of up to seven years to certified businesses that increase employment by 10% at their facility and meet prevailing wage requirements. Refunds can total up to $2,000,000 annually and $10,000,000 over the seven-year certification period. Business facilities must be located outside of the Greater Minneapolis-St. Paul Metro in order to qualify.

Data Centers: Businesses that invest at least $30,000,000 in a data or network operation center with at least 25,000 square feet can qualify for a 20-year sales tax exemption on related equipment purchases. In addition, a 20-year sales tax exemption is available for businesses that invest at least $50,000,000 to refurbish existing data with at least 25,000 square feet. The program sunsets in June 2042.  

Sales and Use Tax Exemptions: In addition to the sales tax exemption for manufacturers’ capital equipment, sales of property delivered outside the state are exempt from sales tax under certain conditions. Materials used or consumed in agricultural, industrial, or services production for retail sale and petroleum products subject to other excise taxes are also exempt from sales and use taxes.

Training Programs

Minnesota Job Skills Partnership (MJSP):  Application-based grants, awarded by the MJSP Board of up to $400,000 are available to educational institutions that partner with businesses to develop job training programs for new hires and existing workers.

Minnesota Job Training Incentive Program (JTIP): Provides training grants of up to $200,000 to new or expanding businesses located in Greater Minnesota. Funding is available to businesses locating outside the metropolitan Twin Cities area and adding at least three new jobs. The new jobs must pay wages at least equal to the average weekly wage for the county in which the jobs are located. Funds may be used to pay direct training costs for workers in new jobs including trainee wages for on-the-job training, curriculum development, delivery of training, materials and supplies, training equipment and facilities, and trainer travel and lodging costs. Funds may also be used for assessment, testing and certification costs. Training may be provided in-house, by institutions of higher education, by federal, state, or local agencies, by consultants, or by equipment vendors. This program may be used (stacked) with the MJSP training program if appropriate and needed.

Last updated: March 2022

Tax Credits

Incentives & Exemptions

Grant and Financing Programs

Special Zoning

Job Training

Financing & Financial Assistance

Local Incentives

Other Programs

Interested in Learning More?

Contact us today at 609.924.9775 or info@blsstrategies.comto schedule an initial incentives strategy consultation.
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