Job Opportunity Building Zones

Purpose
The goal of this program is to stimulate economic development activity in rural areas of Minnesota by providing local and state tax exemptions to business expansions, start-ups, or relocations from other states. Ten Job Opportunity Building Zones (JOBZs) have been created throughout Greater Minnesota.

Customers and Services
Businesses who wish to expand or relocate into Minnesota may be eligible for tax exemptions. Qualified businesses include business start-ups in the zone, business relocations from other states, and business relocations from Minnesota if the business increases employment by 20 percent or 5 new full-time employees, whichever is greater, within the first year of operation in the zone. Businesses become qualified through the execution of business subsidy agreements, which specify performance requirements such as number of jobs to be created, wages and benefits paid, and capital investment.

As of 2008, the program has revised program requirements to improve operations, including requiring that businesses and local governments jointly apply to DEED for JOBZ designation.

Measures - Reporting period is calendar year (CY), January 1 – December 31*

*CY data is presented to match the availability of tax benefits calculated on CY basis.

More DEED measures: Uniform Program Accountability Measures

Funding Source and Expenditure (in thousands)

Note: Annual tax benefit totals include local sales tax and apply to all JOBZ businesses that participate in the program since 2004. Property tax exemptions are in addition to the noted tax credits.

Statutory Authority
-- Minn. Stat., Chap. 469.310 et. seq.

Contact Information
Bob Isaacson, Director
Phone: 651.259.7458 or toll-free: 800.657.3858; TTY: 651.296.3900

This information current as of December 2011.