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THIS PAGE SPONSORED BY PETERSON ANTHONY INSURANCE
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03/30/2012
The Minnesota Tax Relief and Job Creation Act has been approved in the Minnesota House, and State Representative Bob Gunther
(R-Fairmont) said he supported the measure because it will create more employment opportunities for Minnesotans.
“The previous legislature did nothing to improve the business climate in this state, and we felt the impact through continued budget deficits,” said Gunther, who chairs the Minnesota House Jobs and Economic Development Finance Committee. “If you give job creators the tools and resources they need to succeed, they will put more people to work.”
Included in the proposal is the eventual phase out of Minnesota’s business property tax, which would take place over 12 years beginning in 2014. As for the year 2013, the legislation would exclude 70 percent of the first $150,000 of value for all business property, leading to significant savings for rural Minnesota job creators.
Also included is a permanent $5 million increase for Minnesota's Angel Investor Tax Credit, which provides incentives to individuals investing capital into startup and emerging companies focused on high technology or new proprietary technology. With Greater Minnesota currently seeing only six percent of this investment, language has been added that will hopefully spur growth in the rural area. It states that if 30 percent of future investment is not in Greater Minnesota by the end of 2013, then Angel Investors will receive a 40 percent credit - instead of 25 percent - for investing in our rural areas.
The plan also increases funding for the Research and Development Credit, and allows small businesses to take up-front capital equipment exemptions rather than wait months for a refund.
“As a former businessman, I know I would have benefitted greatly from lowered business taxes, and I would have used that savings to invest in my business and more employees,” Gunther said. “Our economy has improved greatly since enacting some new reform laws during the last session, and passing this bill will do more of the same as it would put more Minnesotans to work.”
The bill now heads to the Minnesota Senate for its approval.
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ROD HALVORSEN
© 2010 KSUM.
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