The bill aims to enhance economic development in border cities by increasing the allocation for border city enterprise zones and modifying existing tax reduction authorities. Specifically, it raises the annual allocation from $750,000 to $1,500,000 for tax reductions, which can be utilized by municipalities to retain or attract businesses within these zones. The bill also amends various sections of Minnesota Statutes 2024, including provisions that allow for a broader range of tax reductions for businesses in these zones, such as increasing the income tax credit for additional workers from $3,000 to $5,000 per employee per year, and introducing reimbursements for land acquisition costs necessary for business expansion.

Additionally, the bill removes certain restrictions on the types of facilities eligible for tax reductions, allowing for more flexibility in designating development zones. It permits border cities to designate all or any part of the city as a development zone, rather than being limited to specific areas of 100 acres. 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, and for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 469.169, 469.171, 469.1731