This bill amends Minnesota Statutes to modify the requirements for the small business investment credit, extending the credit allocation and updating various provisions. Key changes include increasing the maximum amount of private equity investments a business can receive from $4,000,000 to $15,000,000, and extending the holding period for investments from three years to five years. Additionally, the bill specifies that 50% of the credit allocation must be directed towards qualified investments in greater Minnesota businesses and minority-owned, women-owned, or veteran-owned qualified small businesses. The bill also introduces a new effective date for these changes, which will apply to taxable years beginning after December 31, 2024.

Further amendments include the requirement for businesses to repay credits if they do not meet employment and payroll requirements within five years of receiving the investment. The reporting requirements to the legislature have also been updated to include more detailed information about the credits issued, including the number and amount of credits revoked and the total investment in each qualified small business. Overall, the bill aims to enhance support for small businesses in Minnesota while ensuring accountability and compliance with the investment criteria.

Statutes affected:
Introduction: 116J.8737