Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2835 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	25-04270 as introduced03/04/25 REVISOR EAP/CH
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 2835NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: NELSON and Hauschild)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading03/20/2025
29	29	Referred to Taxes 2.1 (1) training and materials costs;
30	30	2.2 (2) trainees' wages while in a classroom setting; or
31	31	2.3 (3) the costs of a trainer and wages of a trainee while in an on-the-job or job shadowing
32	32	2.4setting.
33	33	2.5 (h) "Employee wage credit amount" means ten percent of eligible employee wages paid
34	34	2.6in a taxable year, up to $20,000 per eligible employee.
35	35	2.7 (i) "Maximum credit amount" means the amount of eligible expenses incurred in the
36	36	2.8taxable year in which a qualified corporation is certified under subdivision 2, multiplied by
37	37	2.960 percent.
38	38	2.10 (j) "Provisional certification" means certification of a corporation that has not yet
39	39	2.11relocated to Minnesota at the time of the application submitted under subdivision 2.
40	40	2.12 (k) "Qualified corporation" means a corporation that has been certified by the
41	41	2.13commissioner under subdivision 2.
42	42	2.14 (l) "Qualified research" has the meaning given in section 290.068, subdivision 2,
43	43	2.15paragraph (b).
44	44	2.16 (m) "Relocation or renovation expenses" means:
45	45	2.17 (1) moving costs and related expenses;
46	46	2.18 (2) purchases of new or replacement equipment;
47	47	2.19 (3) leasehold and building improvements;
48	48	2.20 (4) renewable energy improvements;
49	49	2.21 (5) property assembly and development expenses, including:
50	50	2.22 (i) purchase, lease, or construction of buildings;
51	51	2.23 (ii) purchase or lease of land;
52	52	2.24 (iii) infrastructure improvements; and
53	53	2.25 (iv) site development costs; and
54	54	2.26 (6) any other costs related to the qualified corporation's relocation or renovation.
55	55	2.27 (n) "Research and development facility" means a facility where qualified research is
56	56	2.28conducted.
57	57	2Section 1.
58	58	25-04270 as introduced03/04/25 REVISOR EAP/CH 3.1 Subd. 2.Certification of qualified corporations.(a) A corporation may apply to the
59	59	3.2commissioner for certification or provisional certification as a qualified corporation for a
60	60	3.3taxable year. The commissioner must prescribe the form and manner for the application.
61	61	3.4Applications for certification and provisional certification must be made available on the
62	62	3.5department's website by November 1 of the preceding year.
63	63	3.6 (b) Within 30 days of receiving an application for certification or provisional certification
64	64	3.7under this subdivision, the commissioner must either certify or provisionally certify the
65	65	3.8corporation as satisfying the conditions required of a qualified corporation, request additional
66	66	3.9information from the corporation, or reject the application for certification or provisional
67	67	3.10certification. If the commissioner requests additional information from the corporation, the
68	68	3.11commissioner must either certify or provisionally certify the corporation or reject the
69	69	3.12application within 30 days of receiving the additional information. If the commissioner
70	70	3.13neither certifies or provisionally certifies the corporation nor rejects the application within
71	71	3.1430 days of receiving the original application or within 30 days of receiving the additional
72	72	3.15information requested, whichever is later, then the application is deemed rejected. A
73	73	3.16corporation that applies for certification or provisional certification and is rejected may
74	74	3.17reapply.
75	75	3.18 (c) To receive certification or provisional certification as a qualified corporation, a
76	76	3.19corporation must satisfy all of the following conditions:
77	77	3.20 (1) the corporation had worldwide revenues of at least $250,000,000 in the immediately
78	78	3.21preceding taxable year;
79	79	3.22 (2) the corporation's corporate headquarters are located in Minnesota in the taxable year
80	80	3.23or will be located in Minnesota in the next taxable year;
81	81	3.24 (3) the corporation employs at least 250 eligible employees at its corporate headquarters
82	82	3.25in the taxable year or, if the corporation is relocating to Minnesota, will employ at least 250
83	83	3.26eligible employees at its corporate headquarters in Minnesota in the next taxable year;
84	84	3.27 (4) the corporation has made a minimum investment of $10,000,000 in eligible expenses
85	85	3.28related to the corporate headquarters project; and
86	86	3.29 (5) the corporation has created new jobs or maintained the current level of positions at
87	87	3.30the corporate headquarters in the taxable year as compared to the immediately preceding
88	88	3.31taxable year.
89	89	3Section 1.
90	90	25-04270 as introduced03/04/25 REVISOR EAP/CH 4.1 (d) A corporation that has received provisional certification under this subdivision must
91	91	4.2apply for and receive certification as a qualified corporation for the year the credit is first
92	92	4.3claimed.
93	93	4.4 Subd. 3.Credit allowed.(a) A qualified corporation located in Minnesota is eligible
94	94	4.5for a credit as provided in this subdivision.
95	95	4.6 (b) In the first year the credit is claimed, the credit is equal to the lesser of:
96	96	4.7 (1) the employee wage credit amount; or
97	97	4.8 (2) the maximum credit amount.
98	98	4.9 (c) If the maximum credit amount exceeds the employee credit amount in the first year
99	99	4.10the credit is claimed, a qualified corporation may claim a credit equal to the employee wage
100	100	4.11credit amount for each taxable year, for up to ten years, until the total of employee wage
101	101	4.12credit amounts claimed equals the maximum credit amount.
102	102	4.13 Subd. 4.Annual reporting to commissioner; continuing certification.(a) By March
103	103	4.141 of each year immediately following the year in which a qualified corporation was first
104	104	4.15certified under subdivision 2, the qualified corporation must submit a report to the
105	105	4.16commissioner affirming that it meets the requirements of subdivision 2 for each year a credit
106	106	4.17is claimed under subdivision 3. If the commissioner determines that a corporation meets
107	107	4.18the requirements of subdivision 2, the commissioner must issue a credit certificate stating
108	108	4.19the amount of credit that the qualified corporation may claim for the taxable year.
109	109	4.20 (b) If a corporation does not meet the requirements of subdivision 2 for a taxable year,
110	110	4.21the commissioner must notify the corporation within 30 days of receipt of the report, and
111	111	4.22the corporation is not allowed a credit for that taxable year.
112	112	4.23 Subd. 5.Report to legislature.Beginning in 2028, the commissioner must annually
113	113	4.24report by March 15 to the chairs and ranking minority members of the legislative committees
114	114	4.25with jurisdiction over taxes and economic development in compliance with sections 3.195
115	115	4.26and 3.197, on the tax credits issued under this section. The report must include:
116	116	4.27 (1) the number and amount of the credits issued;
117	117	4.28 (2) the total amount of eligible expenses resulting in certification of tax credits; and
118	118	4.29 (3) any other information relevant to evaluating the effect of these credits.
119	119	4.30 EFFECTIVE DATE.This section is effective for taxable years beginning after December
120	120	4.3131, 2025.
121	121	4Section 1.
122	122	25-04270 as introduced03/04/25 REVISOR EAP/CH 5.1 Sec. 2. [290.0696] MINNESOTA CORPORATE HEADQUARTERS CREDIT.
123	123	5.2 Subdivision 1.Definitions.For purposes of this section, the terms used in this section
124	124	5.3have the meanings given in section 116J.8739.
125	125	5.4 Subd. 2.Credit allowed.A qualified corporation is allowed a credit against the tax
126	126	5.5imposed under this chapter equal to the amount determined under section 116J.8739,
127	127	5.6subdivision 3, and, if applicable, certified by the commissioner of employment and economic
128	128	5.7development under section 116J.8739, subdivision 2 or 4.
129	129	5.8 Subd. 3.Credit refundable; appropriation.If the amount of the credit under this
130	130	5.9section for any taxable year exceeds the claimant's liability for tax under this chapter, the
131	131	5.10commissioner must refund the excess to the claimant. An amount sufficient to pay the
132	132	5.11refunds required by this section is appropriated to the commissioner from the general fund.
133	133	5.12 Subd. 4.Audit powers.Notwithstanding the certification eligibility issued by the
134	134	5.13commissioner of employment and economic development under section 116J.8739, the
135	135	5.14commissioner may utilize any audit and examination powers under chapter 270C or 289A
136	136	5.15to the extent necessary to verify that the taxpayer is eligible for the credit and to assess for
137	137	5.16the amount of any improperly claimed credit.
138	138	5.17 EFFECTIVE DATE.This section is effective for taxable years beginning after December
139	139	5.1831, 2025.
140	140	5Sec. 2.
141	141	25-04270 as introduced03/04/25 REVISOR EAP/CH