This bill amends Minnesota Statutes to modify the requirements for the small business investment credit, extending the credit allocation and updating 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 for the commissioner, mandating a report to the legislature by March 15 each year detailing the tax credits issued, including the number and amount of credits, recipients, and additional investment amounts. Furthermore, it establishes that any credits allocated must be repaid if the business fails to meet employment and payroll requirements within five years following the investment. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 116J.8737