The bill amends Minnesota Statutes 2024, section 116J.8737, to modify the requirements for the small business investment credit, extend the credit allocation, and update various provisions related to the certification of qualified small businesses. 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 new reporting requirements, mandating that the commissioner report to the legislature on the tax credits issued, including details on the number and amount of credits, recipients, and additional investments. The effective date for these changes is set for taxable years beginning after December 31, 2024. Overall, the bill aims to enhance support for small businesses in Minnesota by broadening eligibility and ensuring more equitable access to investment credits.

Statutes affected:
Introduction: 116J.8737