Frequently Asked Questions
Please click on one of the following links for general questions pertaining to each subject:
JOBZ Program:
- Is there a prohibition against retail?
- What is a Qualified Business?
- In accordance with the business subsidy law, what reports do I have to submit if I get a JOBZ?
- Will DEED assist with marketing the zones?
- Can Zone or Subzone boundaries be amended?
- Can subzone administrators control who receives zone benefits?
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What if a company moves to another Zone location?
Employment:
- How long does a business that relocates into a tax free zone have to maintain its increased employment?
- Is there a required wage amount that must be paid to every employee who works in a JOBZ?
- Do Minnesota's prevailing wage requirements in M.S. 116J.871 apply to JOBZ projects?
Local Community:
- How can communities protect existing businesses from unfair competition?
- Can I award a TIF benefit to a JOBZ parcel within a TIF district?
Can I award an economic development abatement (under M.S. 469.1812, 469.1813, 469.1814 and 469.1815) to a JOBZ parcel? - Can I assess a business for infrastructure to support the development of a site within a tax free zone?
- Can a city still charge fees to in-zone businesses for basic city services (such as water, sewer, etc.)?
Taxes:
- Who should I contact for tax related questions?
- Will a business in a JOBZ Zone be required to file a tax return even if they're exempt from taxes?
- When can the contractor or qualified business start purchasing materials exempt from sales tax, how does a qualified business get the sales tax exemption and who can exercise the sales tax exemption on construction materials?
- Will taxes on a site with vacant buildings be exempt from tax at the time of zone designation?
- Are the tax benefits offered under the JOBZ program a menu or are businesses eligible for all types of tax exemptions?
- What goods and services are exempt from sales tax?
- What are the corporate tax benefits?
- What is a Zone Percentage and what is it used for?
- When does the income of a qualified business start becoming exempt from corporate taxes and how does the business take the corporate tax benefits?
- What are the individual income tax benefits and how does an individual take the tax exemptions?
- Who is eligible for the Jobs Credit and how is the Jobs Credit claimed?
- What property is eligible for property tax exemption and when will property become exempt?
- What part of the tax is property still subject to and is the value of land ever exempt from tax?
- How is the property tax exemption established?
- Does a property leased to a qualified business qualify for tax exemptions?
- If I am the owner of a building who leases the building to a qualified business, do I qualify for tax exemptions?
- What is the claw back provision and how many years of tax benefits must be repaid?