Job Opportunity Building Zones
Passed into law by the 2003 Legislature and launched on January 1, 2004, the Job Opportunity Building Zone (JOBZ) initiative is Minnesota’s marquee rural economic development stimulus program. The program provides substantial tax relief to companies that start up or expand in targeted areas of Greater Minnesota – from the date they sign a business subsidy agreement until the program expires on December 31, 2015. The program identifies 10 zones encompassing more than 300 communities in every region of the state (except in the seven Twin Cities metropolitan counties). Besides targeting areas hit by economic distress, the program also aims to promote development in places that are already poised for business growth and have adequate infrastructure in place. It also seeks out places where favorable conditions exist for restoring productivity to under-used and unproductive properties through development, redevelopment, reclamation or recycling.
For qualified businesses, the JOBZ program offers substantial financial benefits in the form of tax savings. Here’s a list of tax exemptions for which your company could qualify by expanding or locating within one of Minnesota's Job Opportunity Building Zones:
Corporate franchise tax
Income tax for operators or investors, including capital gains tax
Sales tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone
Property tax on commercial and industrial improvements but not on land
Wind energy production tax, and
Employment tax credit for high paying jobs
Your actual benefits will be determined by the exact nature of your business expansion, as well as its effective date. JOBZ benefits accrue from the date that your business qualifies and continue until December 31, 2015, when the JOBZ program is scheduled to expire.
For more information on the JOB Zones, visit the JOBZ website.