This bill aims to enhance economic development in border city enterprise zones in Minnesota by increasing the allocation for tax reductions and modifying existing tax reduction authorities. Specifically, it raises the annual allocation from $750,000 to $1,500,000 for border city allocations, which can be used for tax reductions or offsets for businesses in these zones. The bill also introduces new provisions allowing for a broader range of tax reductions, including an increase in the income tax credit for employers from $3,000 to $5,000 per employee per year, and the ability for municipalities to reimburse land acquisition costs for business expansion necessary to prevent relocation outside the state.

Additionally, the bill removes certain restrictions on the types of facilities eligible for tax reductions, allowing more flexibility for businesses in the designated zones. It permits border cities to designate all or any part of the city as development zones, rather than being limited to specific areas. The effective dates for these changes vary, with some provisions taking effect immediately upon final enactment and others set for future dates, such as July 1, 2025, for specific allocations. Overall, the bill seeks to stimulate economic growth and job retention in border cities by providing more substantial financial incentives for businesses.

Statutes affected:
Introduction: 469.169, 469.171, 469.1731