This bill, introduced in the Minnesota House of Representatives as H.F. No. 2336 by Representative Davids, proposes the establishment of a Minnesota Corporate Headquarters Credit within the state’s corporate franchise tax laws.

Key Provisions:

1. Definition of Corporate Headquarters Credit

   • Provides tax credits for corporations that establish or expand a corporate headquarters in Minnesota.
   • Eligible corporations must maintain corporate headquarters, a division, or a research and development facility in the state.

2. Eligibility Criteria

   • A corporation must have had at least $250 million in worldwide revenue in the previous taxable year.
     
   • It must employ at least 250 eligible employees at its headquarters in Minnesota.
     
   • It must invest at least $10 million in eligible expenses related to the headquarters project.
   • The corporation must maintain or increase job levels at the headquarters compared to the prior year.

3. Tax Credit Amount

   • A 10% employee wage credit is available, capped at $20,000 per eligible employee.
     
   • A corporation can claim a credit for 60% of eligible expenses incurred in the taxable year of certification.
     
   • Credits can be claimed over a period of up to 10 years, until the total claimed equals the maximum eligible credit.

4. Certification & Reporting Requirements

   • Corporations must apply for certification to be eligible for the credit.
     
   • The Minnesota Commissioner of Revenue must certify corporations within 30 days of application.
     
   • Annually, corporations must submit reports affirming their continued eligibility.
     
   • Starting in 2028, the Commissioner must submit an annual report to the legislature detailing the number, amount, and impact of the tax credits issued.

This bill aims to incentivize large corporations to relocate to or expand their headquarters in Minnesota, promoting economic development and job creation in the state.