Frequently Asked Questions
General Questions
Is there a prohibition against retail?
Yes. Pursuant to M.S. 469.310, subd. 11(f), "A business is not a qualified business if, at its location or locations in the zone, the business is primarily engaged in making retail sales to purchasers who are physically present at the business's zone location."
What is a Qualified Business?
A person other than a public utility carrying on a non-retail trade or business at a place of business located within a JOB Zone. A business is not considered to be a "qualified business" until it enters into a Business Subsidy Agreement with the local unit of government. In the case of a relocation from a location in Minnesota, a business is not a "qualified business" until it enters into a Business Subsidy Agreement with the local unit of government, AND enters into a Relocation Agreement with the State.
In accordance with the business subsidy law, what reports do I have to submit if I get a JOBZ ?
According to the JOBZ statute, all incentives given under the JOBZ program must be treated as a business subsidy and thus local units of government must comply with the requirements of the business subsidy law. The Zone or Subzone administrators must annually submit a Business Subsidy report to DEED for each business benefiting from JOBZ status (Minn. Business Assistance Form). Zone Administrators must also submit an annual Development report to DEED. Finally, qualified businesses must submit annual tax returns to the Department of Revenue.
Will DEED assist with marketing the zones?
Yes. DEED’s business development and marketing staff will assist zones and subzones in their marketing efforts. In addition, zones will be identified in DEED's marketing materials and listed on MNPRO. Zones are also responsible for marketing themselves as they indicate in the original zone application.
Can Zone or Subzone boundaries be amended?
Yes. See DEED's JOBZ Zone Modification Process for further information. The process is one of many technical assistance items on the JOBZ web page.
Can subzone administrators control who receives zone benefits?
Yes. Because benefits received in the zone are subject to the business subsidy law, the communities can set criteria that can qualify or disqualify a business to receive JOBZ benefits.
What if a company moves to another Zone location?
The repayment provision applies when the company ceases to operate in the Zone or fails to meet goals of a business subsidy agreement.