Growing prosperity in greater minnesota

Senate tax bill: Workforce housing tax credits in, job training out

The Minnesota Senate released its tax bill on Monday. Here are some of the highlights that pertain to economic development in Greater Minnesota:

  • Workforce housing – The bill includes $5 million for workforce housing tax credits next year and $7 million in each of the two years after that, for a total of $19 million. We are pleased that the Senate was forwarding thinking and chose to add money for the tax credit program now instead of waiting until the next biennium. However, we would still like to see an increase in the amount of money allocated to the program.
  • Job training – Unfortunately, the bill does not include any tax credits for the job training program supported by the GMNP.
  • Broadband – The bill includes language that will make it easier for local governments to partner with Internet service providers to bring service to their communities. The bill also makes it clear that general obligation bonds can be used for broadband.
  • Greater Minnesota Internship Tax Credit – The bill adopts language that makes the tax credit more workable for potential interns and employers. This is improved language that the GMNP originally suggested and supported when the program was first created two years ago.

Action Alert: House tax bill excludes Greater Minnesota economic development initiatives

The House Tax Committee unveiled its omnibus bill today and it excludes the GMNP’s two biggest priorities – tax credits for workforce housing and job training.

From an economic development standpoint, the bill is geographically unbalanced in favor of the metro area. It ignores workforce housing and job training, yet it includes an increase of $6 million over the biennium (for a total of $36 million) for the Angel Investor Tax Credit program, the vast majority of which goes to the metro. The bill also provides an extra $15 million this biennium and $30 million next biennium in tax credits under a newly created program that is likely to be weighted toward the metro area.

ACTION

It is critical that GMNP members call, email or write to their House members, Speaker of the House Kurt Daudt, Ways & Means Committee Chair Jim Knoblach and Tax Committee Chair Greg Davids. Tell them that:

1)   The tax bill is unbalanced in favor of economic development programs in the metro area and ignores the economic development needs of Greater Minnesota. Continue reading