Explore Incentives
Incentives
Our business development managers have the right background, information, and connections to help turn your plans into reality, whether you want to expand your existing business, relocate from another state, or need regulatory and permitting guidance.
Located in the Twin Cities metro area and key economic regions throughout Minnesota, they work closely with companies of all types to help them locate and expand.
Our clients include:
- Companies doing business in Minnesota
- Industry professional and trade organizations
- Out-of-state companies considering expansion in Minnesota
- Government agencies at all levels
- Local development organizations
Our team can help you access a series of programs that can help you grow in Minnesota
- Automation Loan Participation Program provides companion loans intended to fill gap financing needs for businesses purchasing machinery, equipment, or software to increase productivity and automation. Loans of up to $500,000, 5 to 7 year term, 1% interest rate, private financing match required.
- Minnesota Loan Guarantee Program provides 80% loan guarantees for qualified loans made by enrolled lenders; lenders are responsible for setting loan terms. Guarantees up to $800,000 with a .25% guarantee fee on loans enrolled by banks, credit unions, CDFIs and other nonprofit lenders; businesses apply directly with enrolled lenders.
- Minnesota Job Creation Fund provides grants of up to $1 to $2 million to help businesses grow and create jobs.
- Minnesota Investment Fund offers loans up to $1,000,000 loan and focuses on industrial, manufacturing, and technology-related industries. Funding is provided 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.
- Business Development Office offers location and expansion assistance to businesses. Our team orchestrates solutions to help businesses relocate, consolidate, or expand here in Minnesota.
- Minnesota Trade Office provides technical assistance that includes a wide range of export counseling, webinars, forums and training sessions for Minnesota businesses looking to expand globally. Our 13 worldwide offices support export and promotional efforts.
- Minnesota Business First Stop streamlines the development process for complex business startups, expansions or relocations that involve financing, licensing, permitting, and regulatory issues that overlap multiple state agencies.
- Foreign Trade Zones can help businesses reduce or eliminate duty payments and merchandise processing fees and offer other benefits; Minnesota has three FTZs – in Minneapolis-St. Paul, Duluth and International Falls.
Research and Development Tax Credit for R&D expenditures is 10 percent, up to the first $2 million in eligible expenses. The credit is 4 percent for eligible expenses above $2 million. Individuals involved in partnerships, S-corporations and limited liability companies can claim the credit against their individual income taxes. This opens up the tax credit to more small and medium-sized businesses.- Bioscience Incentive Program provides production payments to encourage commercial-scale production of advanced biofuels, renewable chemicals, and thermal energy production from biomass.
- Opportunity Zones use federal tax incentives in low-income urban and rural communities to draw long-term investment to areas with the most economic need by creating a fund for these investments.
- Data Center Tax Incentives are for companies that build new data or network operation centers of at least 25,000 square feet and invest $30 million, or refurbish an existing center of at least 25,000 square feet and invest $50 million, qualify for sales tax exemptions for 20 years on computers and servers, cooling and energy equipment, energy use and software, and they pay no personal property tax ever.
Developing your talent
Minnesota Job Skills Partnership Program partners with businesses and schools to train or retrain workers, expand opportunities, and keep high-quality jobs in the state. Grants of up to $400,000 are awarded to educational institutions that partner with businesses to develop new-job training or retraining for existing employees.- Job Training Incentive Program provides grants of up to $200,000 for businesses to provide training for at least three new jobs new jobs outside the seven-county metro area or in Hanover, Rockford, Northfield and New Prague.
- Automation Training Incentive Program provides grants of up to $25,000 are available to small businesses in the manufacturing or skilled production industry for the express purpose of training incumbent workers as quickly and effectively as possible on new automation technology.
- Scitechsperience Internship Program is a paid internship that connects college students in science, technology, engineering and math disciplines with hands-on opportunities at Minnesota companies. The focus is on strengthening Minnesota's STEM industries and developing an experienced and well-trained workforce.
- Workforce Strategy Consultants
- Assist key stakeholders in the successful implementation of regional plans.
- Leverage expertise in industry sector workforce development strategies.
- Connect key stakeholders to workforce development resources.
- Enhance regional economic prosperity through partnership with DEED's Business Development Specialists and Labor Market Analysts.
- Design tools and resources to support businesses in developing strategic workforce solutions that are relevant in today's dynamic and ever-changing environment.
Infrastructure Investments
We support businesses that locate and expand across all of Minnesota, including Greater Minnesota. To ensure we have the infrastructure to support that growth, we have:
Minnesota 21st Century Fund makes loans or equity investments in innovative mineral, steel, or other industry processing, production, manufacturing, or technology projects located in the taconite relief tax area.- Greater Minnesota Job Expansion Program provides sales tax exemptions for up to 7 years to existing businesses located in Greater Minnesota that increase employment and meet other eligibility requirements.
- Border Cities Enterprise Zones Program provides business tax credits (property tax credits, sales tax credit on construction equipment and materials, new or existing employee credits) to qualifying businesses that are the source of investment, job creation or retention in the border cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, and Ortonville, as well as in the Development Zone of Taylor's Falls. Financial assistance amount is determined by the respective city pursuant to published program guidelines.
We partner not only with businesses but also with cities, counties and economic development authorities to ensure the public infrastructure, including:
- Greater Minnesota Business Development Infrastructure Program makes investments in public infrastructure to stimulate new economic development and to create and retain jobs outside the Twin Cities metropolitan area.
- Innovative Business Development Public Infrastructure Program provides grants to local governmental units for public infrastructure related to a development project used by innovative businesses and organizations.
- Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use.
- Contamination Clean Up and Investigation Grant Program helps communities pay for assessing and cleaning up contaminated sites for redevelopment.
- Transportation Economic Development Infrastructure Program is a competitive grant program available to communities for road and public infrastructure projects that create jobs and support economic development.
- Tax Increment Financing is used by cities, counties, and development authorities to help finance costs of real estate development to encourage developers to construct buildings or other private improvements and to pay for public improvements, such as streets, sidewalks, sewer and water, and similar public infrastructure improvements that are related to the development.
- Tax Abatement is used by cities, counties and school districts to help finance certain economically beneficial projects. Property taxes are forgiven for a period of time to allow the project to cash flow. Or the taxes are captured for a period of time and an up-front payment is made by the political subdivision to help the project cover startup costs.