The bill amends various sections of the Minnesota Statutes to modify tax reduction authority for businesses located in border city enterprise zones. Key changes include the removal of the requirement that designated areas must consist of at least 100 acres and not exceed a total of 400 acres. Additionally, the maximum income tax credit for employers hiring additional workers in these zones is increased from $3,000 to $5,000 per employee per year. New provisions are added to allow for reimbursement of land acquisition costs for business expansion within the zone, provided that the municipality determines the expansion is necessary to prevent relocation outside the state.

Furthermore, the bill revises the restrictions on tax reductions, eliminating specific exclusions for facilities primarily focused on recreation, entertainment, and certain retail food or beverage services. It allows border cities to designate all or any part of the city as development zones, rather than being limited to a specific number of areas or total acreage. The effective dates for these changes vary, with some provisions taking effect the day following final enactment and others effective for taxable years beginning after December 31, 2025.

Statutes affected:
Introduction: 469.171, 469.1731