Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2336 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; corporate franchise; establishing a Minnesota corporate
3	3	1.3 headquarters credit; requiring a report; proposing coding for new law in Minnesota
4	4	1.4 Statutes, chapters 116J; 290.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [116J.8739] MINNESOTA CORPORATE HEADQUARTERS CREDIT.
7	7	1.7 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
8	8	1.8the meanings given.
9	9	1.9 (b) "Corporate headquarters" means any of the following, located in Minnesota:
10	10	1.10 (1) the principal offices of the principal executive officers of a qualified corporation;
11	11	1.11 (2) the principal offices of a division or subdivision of a qualified corporation; or
12	12	1.12 (3) a research and development facility of a qualified corporation.
13	13	1.13 (c) "Corporation" has the meaning given in section 290.01, subdivision 4.
14	14	1.14 (d) "Eligible employee" means an employee whose position and duties involve the
15	15	1.15performance of corporate headquarters functions.
16	16	1.16 (e) "Eligible expenses" means relocation or renovation expenses or employee training
17	17	1.17expenses.
18	18	1.18 (f) "Employee" means an employee whose wages are subject to withholding under
19	19	1.19section 290.92.
20	20	1.20 (g) "Employee training expenses" means:
21	21	1Section 1.
22	22	REVISOR EAP/CH 25-0427003/04/25
23	23	State of Minnesota
24	24	This Document can be made available
25	25	in alternative formats upon request
26	26	HOUSE OF REPRESENTATIVES
27	27	H. F. No. 2336
28	28	NINETY-FOURTH SESSION
29	29	Authored by Davids03/13/2025
30	30	The bill was read for the first time and referred to the Committee on Taxes 2.1 (1) training and materials costs;
31	31	2.2 (2) trainees' wages while in a classroom setting; or
32	32	2.3 (3) the costs of a trainer and wages of a trainee while in an on-the-job or job shadowing
33	33	2.4setting.
34	34	2.5 (h) "Employee wage credit amount" means ten percent of eligible employee wages paid
35	35	2.6in a taxable year, up to $20,000 per eligible employee.
36	36	2.7 (i) "Maximum credit amount" means the amount of eligible expenses incurred in the
37	37	2.8taxable year in which a qualified corporation is certified under subdivision 2, multiplied by
38	38	2.960 percent.
39	39	2.10 (j) "Provisional certification" means certification of a corporation that has not yet
40	40	2.11relocated to Minnesota at the time of the application submitted under subdivision 2.
41	41	2.12 (k) "Qualified corporation" means a corporation that has been certified by the
42	42	2.13commissioner under subdivision 2.
43	43	2.14 (l) "Qualified research" has the meaning given in section 290.068, subdivision 2,
44	44	2.15paragraph (b).
45	45	2.16 (m) "Relocation or renovation expenses" means:
46	46	2.17 (1) moving costs and related expenses;
47	47	2.18 (2) purchases of new or replacement equipment;
48	48	2.19 (3) leasehold and building improvements;
49	49	2.20 (4) renewable energy improvements;
50	50	2.21 (5) property assembly and development expenses, including:
51	51	2.22 (i) purchase, lease, or construction of buildings;
52	52	2.23 (ii) purchase or lease of land;
53	53	2.24 (iii) infrastructure improvements; and
54	54	2.25 (iv) site development costs; and
55	55	2.26 (6) any other costs related to the qualified corporation's relocation or renovation.
56	56	2.27 (n) "Research and development facility" means a facility where qualified research is
57	57	2.28conducted.
58	58	2Section 1.
59	59	REVISOR EAP/CH 25-0427003/04/25 3.1 Subd. 2.Certification of qualified corporations.(a) A corporation may apply to the
60	60	3.2commissioner for certification or provisional certification as a qualified corporation for a
61	61	3.3taxable year. The commissioner must prescribe the form and manner for the application.
62	62	3.4Applications for certification and provisional certification must be made available on the
63	63	3.5department's website by November 1 of the preceding year.
64	64	3.6 (b) Within 30 days of receiving an application for certification or provisional certification
65	65	3.7under this subdivision, the commissioner must either certify or provisionally certify the
66	66	3.8corporation as satisfying the conditions required of a qualified corporation, request additional
67	67	3.9information from the corporation, or reject the application for certification or provisional
68	68	3.10certification. If the commissioner requests additional information from the corporation, the
69	69	3.11commissioner must either certify or provisionally certify the corporation or reject the
70	70	3.12application within 30 days of receiving the additional information. If the commissioner
71	71	3.13neither certifies or provisionally certifies the corporation nor rejects the application within
72	72	3.1430 days of receiving the original application or within 30 days of receiving the additional
73	73	3.15information requested, whichever is later, then the application is deemed rejected. A
74	74	3.16corporation that applies for certification or provisional certification and is rejected may
75	75	3.17reapply.
76	76	3.18 (c) To receive certification or provisional certification as a qualified corporation, a
77	77	3.19corporation must satisfy all of the following conditions:
78	78	3.20 (1) the corporation had worldwide revenues of at least $250,000,000 in the immediately
79	79	3.21preceding taxable year;
80	80	3.22 (2) the corporation's corporate headquarters are located in Minnesota in the taxable year
81	81	3.23or will be located in Minnesota in the next taxable year;
82	82	3.24 (3) the corporation employs at least 250 eligible employees at its corporate headquarters
83	83	3.25in the taxable year or, if the corporation is relocating to Minnesota, will employ at least 250
84	84	3.26eligible employees at its corporate headquarters in Minnesota in the next taxable year;
85	85	3.27 (4) the corporation has made a minimum investment of $10,000,000 in eligible expenses
86	86	3.28related to the corporate headquarters project; and
87	87	3.29 (5) the corporation has created new jobs or maintained the current level of positions at
88	88	3.30the corporate headquarters in the taxable year as compared to the immediately preceding
89	89	3.31taxable year.
90	90	3Section 1.
91	91	REVISOR EAP/CH 25-0427003/04/25 4.1 (d) A corporation that has received provisional certification under this subdivision must
92	92	4.2apply for and receive certification as a qualified corporation for the year the credit is first
93	93	4.3claimed.
94	94	4.4 Subd. 3.Credit allowed.(a) A qualified corporation located in Minnesota is eligible
95	95	4.5for a credit as provided in this subdivision.
96	96	4.6 (b) In the first year the credit is claimed, the credit is equal to the lesser of:
97	97	4.7 (1) the employee wage credit amount; or
98	98	4.8 (2) the maximum credit amount.
99	99	4.9 (c) If the maximum credit amount exceeds the employee credit amount in the first year
100	100	4.10the credit is claimed, a qualified corporation may claim a credit equal to the employee wage
101	101	4.11credit amount for each taxable year, for up to ten years, until the total of employee wage
102	102	4.12credit amounts claimed equals the maximum credit amount.
103	103	4.13 Subd. 4.Annual reporting to commissioner; continuing certification.(a) By March
104	104	4.141 of each year immediately following the year in which a qualified corporation was first
105	105	4.15certified under subdivision 2, the qualified corporation must submit a report to the
106	106	4.16commissioner affirming that it meets the requirements of subdivision 2 for each year a credit
107	107	4.17is claimed under subdivision 3. If the commissioner determines that a corporation meets
108	108	4.18the requirements of subdivision 2, the commissioner must issue a credit certificate stating
109	109	4.19the amount of credit that the qualified corporation may claim for the taxable year.
110	110	4.20 (b) If a corporation does not meet the requirements of subdivision 2 for a taxable year,
111	111	4.21the commissioner must notify the corporation within 30 days of receipt of the report, and
112	112	4.22the corporation is not allowed a credit for that taxable year.
113	113	4.23 Subd. 5.Report to legislature.Beginning in 2028, the commissioner must annually
114	114	4.24report by March 15 to the chairs and ranking minority members of the legislative committees
115	115	4.25with jurisdiction over taxes and economic development in compliance with sections 3.195
116	116	4.26and 3.197, on the tax credits issued under this section. The report must include:
117	117	4.27 (1) the number and amount of the credits issued;
118	118	4.28 (2) the total amount of eligible expenses resulting in certification of tax credits; and
119	119	4.29 (3) any other information relevant to evaluating the effect of these credits.
120	120	4.30 EFFECTIVE DATE.This section is effective for taxable years beginning after December
121	121	4.3131, 2025.
122	122	4Section 1.
123	123	REVISOR EAP/CH 25-0427003/04/25 5.1 Sec. 2. [290.0696] MINNESOTA CORPORATE HEADQUARTERS CREDIT.
124	124	5.2 Subdivision 1.Definitions.For purposes of this section, the terms used in this section
125	125	5.3have the meanings given in section 116J.8739.
126	126	5.4 Subd. 2.Credit allowed.A qualified corporation is allowed a credit against the tax
127	127	5.5imposed under this chapter equal to the amount determined under section 116J.8739,
128	128	5.6subdivision 3, and, if applicable, certified by the commissioner of employment and economic
129	129	5.7development under section 116J.8739, subdivision 2 or 4.
130	130	5.8 Subd. 3.Credit refundable; appropriation.If the amount of the credit under this
131	131	5.9section for any taxable year exceeds the claimant's liability for tax under this chapter, the
132	132	5.10commissioner must refund the excess to the claimant. An amount sufficient to pay the
133	133	5.11refunds required by this section is appropriated to the commissioner from the general fund.
134	134	5.12 Subd. 4.Audit powers.Notwithstanding the certification eligibility issued by the
135	135	5.13commissioner of employment and economic development under section 116J.8739, the
136	136	5.14commissioner may utilize any audit and examination powers under chapter 270C or 289A
137	137	5.15to the extent necessary to verify that the taxpayer is eligible for the credit and to assess for
138	138	5.16the amount of any improperly claimed credit.
139	139	5.17 EFFECTIVE DATE.This section is effective for taxable years beginning after December
140	140	5.1831, 2025.
141	141	5Sec. 2.
142	142	REVISOR EAP/CH 25-0427003/04/25