Our Job Opportunity Building Zone (JOBZ) initiative provides local and state tax exemptions to qualified companies that start up or expand in targeted areas of Greater Minnesota.
There are 10 job zones comprising more than 29,000 acres in about 325 communities. Each zone includes acres for primarily manufacturing, value-added, or high paying service businesses.
The program promotes development in places that are already poised for business growth and have adequate infrastructure in place. It also seeks out places where favorable conditions exist for restoring productivity to under-used and unproductive properties through development, redevelopment, reclamation or recycling.
The JOBZ program offers substantial tax savings. Your company could qualify for the following the tax exemptions by expanding or locating within one of the Job Opportunity Building Zones:
- Corporate franchise tax
- Income tax for operators or investors, including capital gains tax
- Sales tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone
- Property tax on commercial and industrial improvements but not on land
- Wind energy production tax
- Employment tax credit for high paying jobs
Actual benefits are determined by the exact nature of your business expansion, as well as its effective date. JOBZ benefits accrue from the date that your business qualifies and continue until December 31, 2015, when the JOBZ program is scheduled to expire.
Use our JOBZ Tax Benefit Calculator to generate a confidential estimate of your company’s potential tax savings with the JOBZ program.
Businesses that startup or expand in a zone or relocate from other states or from elsewhere in Minnesota are eligible for the incentives if they meet certain job and wage goals:
They must increase employment by a minimum of five jobs or 20 percent, whichever is greater, within the first full year of operations in the zone.
- They must pay each employee (including benefits not mandated by law) at a level equal to at least 110 percent of the federal poverty level for a family of four.
A wide variety of businesses may qualify for JOBZ incentives. However, retail development in not eligible.
Qualifying businesses must enter into a formal business subsidy agreement and relocation agreement (if necessary) to receive the incentives and file regular reports with the Minnesota Department of Revenue.