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Tax Free JOBZ Development Zone

Category: State Incentives, Tax Incentives

Closest Tax-Free JOBZ Zone to Minneapolis
Cambridge is the closest tax-free JOBZ development zone to Minneapolis —just 45 miles straight north of downtown. Businesses that locate or expand in Cambridge's JOBZone save thousands in taxes each year through 2015.

High-Value Tax Exemptions
Minnesota tax exemptions include:

  • Property tax on commercial and industrial improvements
  • Sales tax on goods and services
  • Corporate franchise tax
  • Income tax for operators or investors
  • Capital gains tax
  • Employment tax credit for high-paying jobs
  • Wind energy production tax

Property tax exemptions do not apply to:

  • Local general obligation bond debt
  • School operating levy referendum
  • Land (only improvements to land are exempt)
  • Vacant buildings (while vacant)

JOBZ Qualified Businesses
Four types of business scenarios qualify for JOBZ benefits:

  • Businesses in the zone at the time of its JOBZ designation
  • Business expansion in the zone
  • Business relocations from other states
  • Business relocations from other parts of Minnesota if they increase employment by 20% the first year or make a capital investment equal to 10% of the previous year's gross revenues

Example of Tax Savings: Metal Fabricating Company

  • Distribution/warehouse company with all operations in JOBZone
  • Construction of a 55,000 sq. ft. building valued at $2,700,000 in 2010
  • Annual taxable income of $1,000,000
  • A total of 50 employees
  • Average wage of $30,000
  • Purchase of taxable goods and services totaling $200,000 annually

Minnesota's Job Opportunity Building Zone (JOBZ) program is the most significant jobs incentive program in state history. It was launched in January 2004 to stimulate economic development activity outside the Twin Cities metro area. " JOBZ is the mother of all incentives."

— Minnesota Governor Tim Pawlenty