Minnesota offers a comprehensive array of business incentives to support growth and innovation.  With a strong focus on advanced manufacturing, technology, agriculture, and clean energy, the state is dedicated to fostering an environment where businesses can expand, innovate, and create jobs.  Below are some of the key business incentives available in Minnesota.

Minnesota Job Creation Fund (JCF)

Overview

The Minnesota JCF program provides grants to businesses that create new jobs and make substantial investments in the state.  The program is designed to encourage businesses to expand or relocate to Minnesota, boosting job creation and the state’s economic growth.

Eligibility

• The business must create at least 25 new full-time jobs within two years.

• The business must make a significant capital investment in Minnesota.

• The business must demonstrate the project’s economic impact, such as wages and benefits for new employees.

Incentive Value

• The JCF provides up to $1 million in grants, based on the number of jobs created and the amount of investment.

• The value of the grant is contingent on the size of the business and the project’s impact.

Application Process

Businesses must apply to the Minnesota Department of Employment and Economic Development (DEED), submitting a detailed project plan that includes job creation and investment projections.

Minnesota Investment Fund (MIF)

Overview

The MIF program provides low-interest loans to businesses to help finance capital projects, job creation, and infrastructure development.  The program is designed to attract and retain businesses that are making significant investments in the state.

Eligibility

• The business must create a minimum number of new jobs and make a substantial capital investment.

• The business must operate in targeted industries, such as manufacturing, clean energy, and technology.

Incentive Value

• The program provides loans at below-market interest rates to cover up to 50% of the capital costs of a project.

• Loan amounts can vary but are generally up to $2 million.

Application Process

Businesses must apply to DEED, providing project details and job creation projections.

Minnesota Forward Fund

Overview

The Minnesota Forward Fund is designed to provide grants to businesses that are engaged in innovation or expanding into new markets.  The fund encourages companies to invest in new technologies and business practices that will drive future growth.

Eligibility

• The business must be focused on innovation, technology, or market expansion.

• The business must show a strong plan for scaling and job creation.

Incentive Value

• The fund offers grants of up to $500,000 to eligible businesses.

• Grant amounts depend on the scope of the project and the potential economic impact.

Application Process

Businesses must apply to DEED, submitting detailed plans for growth, market expansion, and innovation.

Minnesota Angel Tax Credit

Overview

The Minnesota Angel Tax Credit incentivizes investors to fund early-stage companies in Minnesota.  The goal of the program is to increase access to capital for start-up businesses in industries such as technology, life sciences, and clean energy.

Eligibility

• The business must be a start-up or early-stage company located in Minnesota.

• The business must be engaged in high-tech, clean energy, or life sciences industries.

• The company must have fewer than 25 full-time employees and annual gross revenues of less than $5 million.

Incentive Value

• Investors can receive a tax credit equal to 25% of their investment in qualifying businesses, up to a maximum of $125,000 per investor.

• The program is subject to funding availability and program caps.

Application Process

Investors and businesses must apply through DEED, providing details of the investment and the business’s qualifications.

Minnesota Research and Development (R&D) Tax Credit

Overview

The Minnesota R&D Tax Credit is designed to encourage businesses to invest in R&D activities.  This program helps reduce the costs associated with developing new products, processes, and technologies.

Eligibility

• The business must incur qualifying R&D expenses in Minnesota.

• R&D activities must involve the development or improvement of products, processes, or technologies.

Incentive Value

• Businesses can receive a tax credit equal to 10% of their qualified R&D expenses.

• The credit is refundable for small businesses with fewer than 50 employees.

Application Process

Businesses must file a claim with the Minnesota Department of Revenue (MDR), providing detailed information on their R&D activities and expenses.

Minnesota Green Energy Tax Credit

Overview

The Minnesota Green Energy Tax Credit is designed to promote investment in renewable energy projects and clean energy technologies.  The program encourages businesses to install renewable energy systems or make energy-efficient upgrades.

Eligibility

• The business must invest in renewable energy systems, such as solar or wind energy.

• Eligible projects include energy-efficient upgrades to existing facilities, such as insulation, lighting, or heating systems.

Incentive Value

• The program provides a tax credit equal to 25% of the total investment in renewable energy projects or energy-efficient upgrades.

• The maximum credit for businesses is $100,000.

Application Process

Businesses must apply to the Minnesota Department of Commerce, providing a detailed proposal for the renewable energy project or energy-efficient upgrade.

Minnesota Tax Increment Financing (TIF)

Overview

The Minnesota TIF program provides property tax incentives to businesses that invest in new construction or redevelopment projects.  The program is designed to promote development in underutilized areas of the state, including brownfield sites and economically distressed communities.

Eligibility

• The business must invest in property within a designated TIF district.

• The project must meet specific criteria for job creation, investment, and community revitalization.

Incentive Value

• The program allows businesses to receive a rebate on property taxes that are generated from new development.

• The tax increment can be used to cover the costs of construction, infrastructure improvements, and environmental remediation.

Application Process

Businesses must apply through the local municipality and MDR, providing project details, including the expected economic impact and job creation.

Minnesota Economic Development and Infrastructure Financing (EDIF)

Overview

The EDIF program provides low-interest loans and grants for businesses to make infrastructure improvements.  The program supports the development of facilities, transportation, and other infrastructure that will enable businesses to grow and create jobs.

Eligibility

• The business must make a significant investment in infrastructure, including utilities, transportation, or site preparation.

• The business must create jobs and make a substantial economic impact in the community.

Incentive Value

• Businesses can receive loans or grants to cover up to 80% of eligible infrastructure costs.

• The program provides low-interest financing to help offset the costs of infrastructure development.

Application Process

Businesses must apply through DEED, submitting a detailed proposal for the infrastructure project.

Minnesota Workforce Development Fund (WDF)

Overview

The Minnesota WDF program offers grants to businesses that invest in employee training and skills development.  The program is designed to help businesses maintain a competitive workforce and support employees in gaining new skills.

Eligibility

• The business must be located in Minnesota and provide training opportunities for its employees.

• The training must be designed to improve worker productivity, skills, or adaptability to new technologies.

Incentive Value

• Businesses can receive grants to cover up to 50% of the cost of employee training programs.

• The maximum grant amount is $250,000.

Application Process

Businesses must apply through DEED, providing details of the training program and the skills development objectives.

Minnesota Historic Rehabilitation Tax Credit

Overview

The Minnesota Historic Rehabilitation Tax Credit incentivizes businesses to rehabilitate historic properties.  The program is designed to preserve the state's architectural heritage while fostering economic development through property redevelopment.

Eligibility

• The property must be listed on the National Register of Historic Places or be eligible for listing.

• The rehabilitation project must meet the Secretary of the Interior’s Standards for Rehabilitation.

Incentive Value

• The credit provides a tax credit equal to 20% of qualified rehabilitation expenditures.

• The maximum credit for businesses is $1.5 million.

Application Process

Businesses must apply to the Minnesota Historical Society, submitting detailed plans for the rehabilitation of the historic property.

Minnesota Film Production Tax Credit

Overview

The Minnesota Film Production Tax Credit provides financial incentives to film and television production companies that work in Minnesota.  The program aims to attract film production, generate jobs, and promote tourism in the state.

Eligibility

• The business must be involved in the production of films or television shows in Minnesota.

• The production must incur qualifying expenses within the state.

Incentive Value

• The credit provides up to 25% of qualifying production expenses.

• The program is available to both in-state and out-of-state production companies.

Application Process

Businesses must apply to the Minnesota Film Office, providing documentation of production costs and project plans.