Minnesota SF 1512: New markets tax credit proposal

Bill Text

1.1A bill for an act​
1.2relating to taxation; proposing a new markets tax credit; providing for​
1.3administration of the credit; allowing for disclosure of certain information;​
1.4amending Minnesota Statutes 2022, sections 13.4967, by adding a subdivision;​
1.5116J.401, subdivision 3; 270B.14, subdivision 2; 297I.20, by adding a subdivision;​
1.6proposing coding for new law in Minnesota Statutes, chapter 290; proposing coding​
1.7for new law as Minnesota Statutes, chapter 116X.​
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.9Section 1. Minnesota Statutes 2022, section 13.4967, is amended by adding a subdivision​
1.10to read:​
1.11Subd. 9.New markets tax credit.Disclosure of information regarding issuance of new​
1.12market tax credit certificates is governed under section 270B.14, subdivision 2, paragraph​
1.13(a), clause (4).​
1.14EFFECTIVE DATE.This section is effective the day following final enactment.​
1.15Sec. 2. Minnesota Statutes 2022, section 116J.401, subdivision 3, is amended to read:​
1.16Subd. 3.Classification and release of data on individuals.(a) Data collected on​
1.17individuals pursuant to a program operated by the commissioner are private data on​
1.18individuals as defined in section 13.02, subdivision 12, unless more restrictively classified​
1.19by law.​
1.20(b) The commissioner may release to the Department of Revenue data on individuals to​
1.21the extent required to administer the new markets tax credit under chapter 116X and sections​
1.22290.0693 and 297I.20, subdivision 6.​
1.23EFFECTIVE DATE.This section is effective the day following final enactment.​
1​Sec. 2.​
23-01731as introduced​01/31/23 REVISOR EAP/AD​
SENATE​
STATE OF MINNESOTA​
S.F. No. 1512​
NINETY-THIRD SESSION​
(SENATE AUTHORS: NELSON, Rest, Klein, Dziedzic and Weber)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​763​02/09/2023​
Referred to Taxes​

2.1Sec. 3. [116X.01] NEW MARKETS TAX CREDIT.​
2.2Subdivision 1.Definitions.(a) For purposes of this section, the following terms have​
2.3the meanings given.​
2.4(b) "Applicable percentage" means zero percent for each of the first two credit allowance​
2.5dates and ten percent for each of the final five credit allowance dates.​
2.6(c) "CDFI fund" means the Community Development Financial Institutions fund of the​
2.7United States Department of the Treasury.​
2.8(d) "Commissioner" means the commissioner of employment and economic development.​
2.9(e) "Credit allowance date" means:​
2.10(1) the date on which a qualified equity investment is initially made; and​
2.11(2) each of the six anniversary dates thereafter.​
2.12(f) "Greater Minnesota allocation" means $60,000,000 in qualified equity investment​
2.13authority to be awarded for investment in qualified active low-income community businesses​
2.14with principal business operations in a greater Minnesota county.​
2.15(g) "Greater Minnesota county" means any county located in Minnesota that is not a​
2.16metropolitan county.​
2.17(h) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.​
2.18(i) "Metropolitan allocation" means $60,000,000 in qualified equity investment authority​
2.19to be awarded for investment in qualified active low-income community businesses with​
2.20principal business operations in a metropolitan county.​
2.21(j) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.​
2.22(k) "Minnesota qualified community development entity" means a qualified community​
2.23development entity that is or whose controlling entity is headquartered in this state.​
2.24(l) "Principal business operations" means the physical location of a business where at​
2.25least 60 percent of a qualified active low-income community business' employees work.​
2.26An out-of-state business that has agreed to relocate employees or a Minnesota business that​
2.27has agreed to hire employees using the proceeds of a qualified low-income community​
2.28investment to establish principal business operations in Minnesota is deemed to have principal​
2.29business operations in Minnesota if the business satisfies the requirements of this paragraph​
2.30within 180 days of receiving the qualified low-income community investment or another​
2.31date as agreed by the business and the commissioner.​
2​Sec. 3.​
23-01731as introduced​01/31/23 REVISOR EAP/AD​

3.1(m) "Purchase price" means the amount paid to the qualified community development​
3.2entity for a qualified equity investment.​
3.3(n) "Qualified active low-income community business" has the meaning given in section​
3.445D of the Internal Revenue Code, except that any business that derives or projects to derive​
3.515 percent or more of its annual revenue from the rental or sale of real estate is not considered​
3.6to be a qualified active low-income community business. This exception does not apply to​
3.7a business that is controlled by or under common control with another business if the second​
3.8busin