Business 4 Business MSP Regional Coalition
Taxes & Incentives
Property Assessed Clean Energy (PACE) Program
The PACE Program is a way to finance energy efficient building improvements or new construction. PACE is repaid as an assessment on a property tax bill for a set period. In this way, PACE eliminates the burden of upfront costs by providing low-cost, long-term financing. PACE is different than a traditional loan: there is less of a reliance on credit, the assessment stays with the property instead of the owner, and they can generally be repaid over longer terms than a bank might allow.
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Key Local Incentives
Many municipalities and utility companies in Anoka County offer tax abatement, tax increment financing, and other business incentives. Toggle down on some of the recent project examples that utilized innovative local financing solutions.
Columbia Heights Bonded for Lino Lakes Non-Profit
In 2018, Love To Grow On, a Minnesota nonprofit who provides early childhood education to children six-weeks through age twelve wanted to consolidate its two locations and construct a new 13,000 square foot facility in the City of Lino Lakes. Love To Grow On originally requested the City of Lino Lakes issue Tax Exempt Bonds, but unfortunately the City of Lino Lakes already had plans to issue the maximum amount of Bank-Qualified Bonds allowed by the IRS Code. The City of Columbia Heights agreed to issue Tax Exempt Bonds, to provide them the financing necessary to construct their early childhood center in Lino Lakes. Typically, cities will issue Bank-Qualified Bonds within their respective city; however, pursuant to State Statutes, cities may issue obligations outside of their city boundaries if the governing body of the city in which the development occurs consents to it. This project show cased a municipal financial partnership that was mutually beneficial to both cities and Love To Grow On!
Blaine Establishes a Redevelopment TIF District for Townhome Development
South Terrace Cove – This project is approved for 42 townhome units at the corner of 102nd and University Ave. in Blaine. The site currently has three, older office buildings with storage garages. The Blaine EDA provided $850,000 in TIF to assist in demolishing the buildings and writing down land costs. This was accomplished through the creation of a new redevelopment TIF district
City Uses Existing TIF Funds for Affordable Housing Project
Dominium is constructing a 198 unit affordable, senior apartment at the corner of 109th and Lexington Avenue in Blaine (Legends of Blaine). Dominium requested $1.45mil from the City of Blaine to assist in making the project financially feasible as an affordable product. This was accomplished with existing TIF funds the Blaine EDA had available.
Coon Rapids Makes Loan for Business Expansion
Coon Rapids granted Steinwall, a longtime Coon Rapids business a $200,000 loan towards the cost of expansion and acquisition of a new 145,500 square foot warehouse facility.
Tax Credits
Data Center Incentive Program: Companies that build data or network operations that meet size and investment requirements qualify for a sales tax exemption for 20 years on computer, cooling and energy needs, and receive permanent personal property tax exemption.
Research and Development Tax Credit: A credit of 10 percent, up to the first $2 million in eligible expenses, and 2.5 percent for eligible expenses above $2 million.
Small Business Credit Initiative: This capital access initiatives allocates up to $15.4 million into three state programs.
Business Expansion & Job Creation
Business Development Loan Program: The program provides loans for business expansions that result in the creation of new jobs. Loans are up to $5 million.
Minnesota Job Creation Fund: The fund provides up to $1 million in grants to approved businesses after specified job creation and capital investment goals are achieved.
Investment
Angel Tax Credit: Small tech firms in Minnesota can qualify for up to $1 million in angel tax credits.
Minnesota Investment Fund: Awards grants to local units of government, which use the money to provide below-market rate loans to help companies expand. Funding may be used to purchase land, machinery and equipment.
Minnesota Growth Acceleration Program: Provides consulting services to help small manufacturers become more efficient and competitive.
Workforce Training Programs
Minnesota Job Skills Partnership Program: Partners with businesses and schools to develop new-job training or retraining for existing employees. Training grants are offered in five different program areas.
Technology & Science Companies
Scitechsperience Internship Program: This paid internship program connects college students in science, technology, engineering and math disciplines with rewarding hands-on opportunities at Minnesota companies that need their skills.
Data Center Incentive Program: Companies that build data or network operations that meet size and investment requirements qualify for a sales tax exemption for 20 years on computer, cooling and energy needs, and receive permanent personal property tax exemption.
Bioscience Incentive Program: Provides production payments to encourage commercial scale production of advanced biofuels, renewable chemicals, and thermal energy production from biomass.
Research and Development Tax Credit: A credit of 10 percent, up to the first $2 million in eligible expenses, and 2.5 percent for eligible expenses above $2 million.