Income tax provisions modified, small business investment credit reinstated, allocation amount of credit modified, and credit sunset extended.
Impact
If enacted, HF1813 will recalibrate how tax credits are distributed to small businesses, allowing a total allocation of $10 million for taxable years beginning after December 31, 2022, which marks an increase compared to previous allocation limits. The bill strengthens provisions that prevent conflicts of interest by disallowing investment credits for individuals closely tied to the business, thereby aiming to ensure that benefits are properly directed toward genuine business enhancement rather than personal enrichment of insiders.
Summary
House File 1813 focuses on revising the existing structure of tax credits available for small business investments in Minnesota. The primary purpose of this bill is to reinstate a small business investment credit, modify the allocation amounts of this credit, and extend the sunset provision that previously limited its availability. This initiative aims to support small businesses—especially focusing on minority-owned, women-owned, and veteran-owned enterprises—thereby fostering economic development in the state. The bill emphasizes that a significant portion of available credits should be allocated to invest in businesses located in greater Minnesota, ensuring regional economic balance.
Contention
Notable points of contention include concerns regarding the potential limitations imposed on receiving credits, especially pertaining to the defined eligibility of 'qualified investors.' Opponents may argue that the restrictions could make it challenging for specific groups to benefit from the investment credits. Furthermore, while the bill seeks to extend the credit's availability, there may be debates surrounding its long-term implications on state funding and resources allocated towards small business support, along with the effectiveness of the credit itself in stimulating sustainable growth.
Individual income tax provisions modified, corporate franchise tax provisions modified, film production credit modified, allocation increased, and sunset repealed.
Health care entities required to report information on ownership or control to the commissioner of health, annual public reports required, enforcement provided, penalties authorized, and money appropriated.
Health care entities reporting information on ownership or control to the commissioner of health requirement provision, penalties authorization, and appropriation
Technical and housekeeping changes made to various provisions governing or administered by the Department of Commerce, and administrative rulemaking authorized.