Purpose of the Bill

This bill aims to enhance economic development in Minnesota's border city enterprise zones by increasing the funds allocated for tax reductions. It seeks to make these zones more attractive to businesses by offering financial incentives, thus encouraging business retention and attraction to these areas.

Main Provisions

• Increased Allocation: The bill proposes increasing the annual funding for tax reductions in border city enterprise zones from $750,000 to $1,500,000. This increase is intended to provide more substantial financial incentives for businesses.

• Tax Reduction and Offsets: The allocations can be used for tax reductions or other tax offsets for businesses within the enterprise zones. These financial measures are contingent on the local municipality’s determination that such incentives are essential for attracting or retaining businesses in these zones.

Significant Changes to Existing Law

• The bill amends Minnesota Statutes 2024, section 469.169, subdivision 21, by increasing the allocated amount and ensuring that these funds are distributed annually on a per capita basis to cities along the western border of Minnesota.

• Removes prior restrictions on fund usage, stating that the allocations do not cancel or expire, allowing cities to utilize them until they are fully expended.

Relevant Terms

• Economic development
• Border city enterprise zones
• Tax reductions
• Business retention
• Business attraction
• Financial incentives
• Western border cities