Minnesota

Greater Minnesota Business Development Infrastructure Grant Program helps stimulates new economic development, create new jobs and retain existing jobs through investments in public infrastructure. It provides grants to cities of up to 50% of the capital costs of the public infrastructure necessary to expand or retain jobs in the area, increase the tax base, or expand or create new economic development.
Job Training Incentive Program provides grants of up to $200,000 to new or expanding businesses for the purpose of training new workers as quickly and efficiently as possible. The program is available to businesses located in Greater Minnesota. Grant funds may be used for direct training costs for training provided in-house; by institutions of higher education; by federal, state, or local agencies; or private training or educational providers.
Innovative Business Development Public Infrastructure Program focuses on job creation and retention through the growth of new innovative businesses and organizations. The program provides grants to local governmental units on a competitive basis statewide for up to 50% of the capital cost of the public infrastructure necessary to expand or retain jobs.
The Emerging Entrepreneur Loan Program provides loan capital for businesses that are owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities.
The Minnesota Indian Business Loan Program supports the development of Indian-owned and operated businesses and promotes economic opportunities for Indian people throughout Minnesota.
Greater Minnesota Internship Tax Credit Program – Eligible employers may claim a refund credit of up to $2,000 for each internship provided to an eligible student in Greater Minnesota.
The Greater Minnesota Job Expansion Program provides tax benefits to businesses located in Greater Minnesota that increase employment. Qualifying businesses that meet job-growth goals may receive sales tax refunds for purchases made during a seven-year period.
Minnesota Job Skills Partnership Program works with businesses and educational institutions to train or retrain workers, expand work opportunities and keep high-quality jobs in the state. The goal is to target short-term training for full-time employment in the growth sectors of the state’s economy. It offers grants through a variety of programs to offset training-related expenses incurred by business, industry and educational institutions to meet current and future workforce needs.
The Research and Development Tax Credit is equal to 10% of qualifying expenses up to $2 million, and 4% for expenses above that level. Qualifying expenses are the same as for the federal R&D credit — defined in Section 41 of the Internal Revenue Code — but must be for research done in Minnesota. Examples include R&D-related wages, supplies and research contracted outside your business. Contributions to qualified nonprofit organizations that make grants to early-stage technology businesses in Minnesota also may qualify.
Local governments may use property tax abatement to help finance certain economically beneficial projects. Property taxes are forgiven for a period of time. Or the taxes are captured for a period of time and an up-front payment is made to help with project costs.
Personal Property Exemption – In Minnesota, only real property such as land and buildings, is taxable. Personal property is exempt from the property tax. Anything that is not real property is personal property. The main characteristic of personal property is that it is movable without causing damage to itself or the real estate.
Data Center Tax Incentive gives companies that build data or network operation centers of at least 25,000 square feet and invest at least $30 million within 48 months valuable tax breaks.
Capital Equipment Exemption – Businesses that buy or lease qualifying capital equipment (machinery and equipment used in manufacturing) for use in Minnesota are eligible for an up-front exemption from Minnesota state and local sales or use.
Dual Training Competency Grants – The Dual Training Program is a collaborative of the Minnesota Department of Labor and Industry (DLI), The Office of Higher Education (OHE) and DEED. The Program will provide grants to employers or organizations representing the employer to train employees in achieving the competency standard for an occupation identified by the Commissioner of DLI.
Launch Minnesota Grants – The 2021 Minnesota Legislature, in its Special Session which ended 6/30/21, reauthorized the Launch Minnesota Grant Program, funded it at $1.5 million for each of fiscal years 2022 and 2023 and made some programmatic changes.
Minnesota Foreign Trade Zones – A Foreign Trade Zone is the U.S. version of an International Free Trade Zone. Always located near a Port of Entry, an FTZ can be used to store foreign or domestic goods, re-package materials, assemble products, manufacture or re-export goods without paying Customs duties. Merchandise can be held indefinitely within an FTZ without any payment of customs duty. A U.S. Department of Commerce program born in 1934, FTZs are operated as public utilities by states, port authorities, other political groups, or corporations charted by the state.
Minnesota Investment Fund provides up to $1 million in financing to help add new workers and retain high-quality jobs. The program focuses on industrial, manufacturing and technology-related industries and aims to increase the local and state tax base and improve economic vitality.
Minnesota Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Companies deemed eligible to participate may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements. For extremely large projects, companies may be eligible to receive up to $2 million. Award amounts depend on job creation and investment levels.
Tax Increment Financing – Cities, counties and development authorities often use Tax Increment Financing (TIF) to help finance project costs. TIF is used to encourage private development and to pay for public improvements, such as streets, sidewalks, sewer and water, and similar public infrastructure improvements that are related to the development.
Launch Minnesota is a statewide collaborative effort to accelerate the growth of startups and amplify Minnesota as a national leader in innovation.