Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2879

Introduced
3/24/25  

Caption

Certain small business investment credit requirements modifications

Impact

The modifications introduced in SF2879 will likely have significant implications for small businesses across Minnesota, particularly in greater Minnesota regions. By adjusting the qualifications for receiving tax credits, the bill intends to streamline the certification process, encouraging more small businesses to apply. This legislative change is expected to influence the landscape of local business operations, incentivizing companies to innovate and invest within the state. Furthermore, the bill aims to guarantee that the tax credit process remains manageable for qualifying businesses, potentially leading to increased economic activity and improved job opportunities.

Summary

Senate File 2879 is an act focused on modifying certain requirements related to the small business investment credit in Minnesota. The bill aims to enhance the support for small businesses by extending the credit allocation provisions outlined in Minnesota Statutes. It specifically modifies the criteria for what constitutes a 'qualified small business', with an emphasis on businesses that demonstrate a commitment to innovative practices and maintain a substantial presence in Minnesota. The law stipulates that businesses must meet defined employment and payroll benchmarks to qualify, thereby promoting local economic growth and job retention.

Contention

Despite the apparent benefits of SF2879, there are notable points of contention surrounding its provisions. Critics may argue that the restrictions and requirements could inadvertently exclude some small businesses that do not fully meet the stringent criteria, particularly newer startups or those in less urbanized areas. The focus on maintaining high employee numbers and payroll expenditures could set barriers that could disproportionately affect smaller entities, limiting their ability to secure necessary capital through the investment credits. Such concerns suggest a need for ongoing dialogue to address the balance between incentivizing growth and ensuring accessibility for all businesses in the state.

Companion Bills

MN HF2723

Similar To Small business income tax investment credit requirements modified, and credit allocation extended.

Previously Filed As

MN SF1874

Small business investment income tax credit reinstatement; allocation amount of the credit modification; sunset for the credit extension

MN HF1813

Income tax provisions modified, small business investment credit reinstated, allocation amount of credit modified, and credit sunset extended.

MN SF1425

Certain provisions modification for state purchasing small businesses

MN SF1720

Small business partnership program codification

MN SF783

Tax provisions modifications

MN SF4225

Omnibus Capital Investment appropriations

MN SF4088

Requirements related to small business or small targeted group business preference program modification

MN HF3028

Economic development finance bill.

MN SF2741

Agriculture appropriations provisions modifications

MN SF3035

Omnibus Jobs, Economic Development, Labor, and Industry appropriations

Similar Bills

MN HF2723

Small business income tax investment credit requirements modified, and credit allocation extended.

MN HF1813

Income tax provisions modified, small business investment credit reinstated, allocation amount of credit modified, and credit sunset extended.

MN SF1874

Small business investment income tax credit reinstatement; allocation amount of the credit modification; sunset for the credit extension

MN HF2779

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.

MN SF2939

Health care entities reporting information on ownership or control to the commissioner of health requirement provision, penalties authorization, and appropriation

MN SF2476

Various Department of Commerce governed or administered provisions modifications

MN HF2398

Technical and housekeeping changes made to various provisions governing or administered by the Department of Commerce, and administrative rulemaking authorized.

MN HF4077

Consumer protection, monetary and financial institutions policy, insurance, and telecommunications provisions added, modified, or eliminated; on-sale liquor licenses modified and authorized; technical changes made; reports required; and penalties established.