For all the rancor and contention that marked this year’s legislative session, there was a piece of legislation that has been well received by legislators and the business community alike.
At the urging of Gov. Tim Pawlenty, the Legislature passed a comprehensive jobs bill early in the session, which the governor signed on April 1. The bill contains a range of tax incentives for new construction, building renovation and investment in job-creating businesses.
According to State Sen. Gary Kubly, DFL-Granite Falls, rural Minnesota stands to benefit from the new bill because of its provision regarding investment credits, historic rehabilitation credits, and clean energy financing.
Kubly called the legislation “the best thing we have done for the business community in the 14 years I’ve been in the Legislature.”
He was speaking Monday to a group of approximately 18 local economic development, financial institution, and business representatives at an informational meeting held at Valentino’s Restaurant in downtown Montevideo.
With Kubly were attorneys Julie Perrus and Michael Schley from the Larkin Hoffman Daly & Lindgren Ltd. law firm. Each explained various provisions in the bill as they relate to economic development districts, investment credits, and “green” projects.
Perrus called the historic rehabilitation credit, which adds a 20 percent state credit to the existing 20 percent federal credit “a great boon to folks who want to rehabilitate historic buildings in downtowns.”
In addition, rural units of government, EDAs, and HRAs will have another tool called Property Assessed Clean Energy financing to provide funding to accelerate energy retrofits for businesses and residential property owners.
Property owners will borrow money from the local government to finance energy retrofits, and then repay it over 20 years via a property tax assessment.
Schley explained the Angel Investor Tax Credit and how it is designed to make available critical capita for higher risk businesses to expand, in particular rural businesses which traditionally have had more difficulty attracting investment during their early development when it is most critical.
Businesses and investors have to meet specific requirements, and that could appear daunting to some. “The biggest fear I have is that people will see it as complex and won’t apply,” said Schley.
Kubly noted the research and development piece included for established businesses “may be the most important, but the most difficult, piece.”
Information about the provisions of the bill will be available beginning July 1 on the Positively Minnesota Web site. There will be forms available that will be very helpful, according to Schley. Flow charts are available that will help businesses and investors determine whether or not they meet requirements.
Feedback from those present Monday appeared positive. “It’s a good deal,” said Scott Marquardt, from the Southwest Initiative Fund. “I think it’s a mechanism for people to make money and do good at the same time.”
Getting the word out to businesses in greater Minnesota is a major concern, noted Kubly. The opportunities are there, but people need to be aware of them.
Parrus added the bill was a work in progress and that proponents would be going back to the Legislature next year to suggest improvements. She urged those present to let Kubly know what could be done.
“I’m really hoping this bill makes a difference and helps companies grow,” said Schley.
The bill was an effort of a coalition of contractors, construction workers, architects, engineers and others in the construction industry, as well as legislative leaders.
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For all the rancor and contention that marked this year’s legislative session, there was a piece of legislation that has been well received by legislators and the business community alike.
At the urging of Gov. Tim Pawlenty, the Legislature passed a comprehensive jobs bill early in the session, which the governor signed on April 1. The bill contains a range of tax incentives for new construction, building renovation and investment in job-creating businesses.
According to State Sen. Gary Kubly, DFL-Granite Falls, rural Minnesota stands to benefit from the new bill because of its provision regarding investment credits, historic rehabilitation credits, and clean energy financing.
Kubly called the legislation “the best thing we have done for the business community in the 14 years I’ve been in the Legislature.”
He was speaking Monday to a group of approximately 18 local economic development, financial institution, and business representatives at an informational meeting held at Valentino’s Restaurant in downtown Montevideo.
With Kubly were attorneys Julie Perrus and Michael Schley from the Larkin Hoffman Daly & Lindgren Ltd. law firm. Each explained various provisions in the bill as they relate to economic development districts, investment credits, and “green” projects.
Perrus called the historic rehabilitation credit, which adds a 20 percent state credit to the existing 20 percent federal credit “a great boon to folks who want to rehabilitate historic buildings in downtowns.”
In addition, rural units of government, EDAs, and HRAs will have another tool called Property Assessed Clean Energy financing to provide funding to accelerate energy retrofits for businesses and residential property owners.
Property owners will borrow money from the local government to finance energy retrofits, and then repay it over 20 years via a property tax assessment.
Schley explained the Angel Investor Tax Credit and how it is designed to make available critical capita for higher risk businesses to expand, in particular rural businesses which traditionally have had more difficulty attracting investment during their early development when it is most critical.
Businesses and investors have to meet specific requirements, and that could appear daunting to some. “The biggest fear I have is that people will see it as complex and won’t apply,” said Schley.
Kubly noted the research and development piece included for established businesses “may be the most important, but the most difficult, piece.”
Information about the provisions of the bill will be available beginning July 1 on the Positively Minnesota Web site. There will be forms available that will be very helpful, according to Schley. Flow charts are available that will help businesses and investors determine whether or not they meet requirements.
Feedback from those present Monday appeared positive. “It’s a good deal,” said Scott Marquardt, from the Southwest Initiative Fund. “I think it’s a mechanism for people to make money and do good at the same time.”
Getting the word out to businesses in greater Minnesota is a major concern, noted Kubly. The opportunities are there, but people need to be aware of them.
Parrus added the bill was a work in progress and that proponents would be going back to the Legislature next year to suggest improvements. She urged those present to let Kubly know what could be done.
“I’m really hoping this bill makes a difference and helps companies grow,” said Schley.
The bill was an effort of a coalition of contractors, construction workers, architects, engineers and others in the construction industry, as well as legislative leaders.
