1.1 	A bill for an act
1.2 	relating to economic development; establishing a health insurance pool for 
1.3 	farmers; modifying environmental permitting for agriculture-related businesses; 
1.4 	modifying environmental review requirements; providing tax incentives for 
1.5 	angel investments and water conservation; allowing environmental assessment 
1.6 	worksheets to be completed online; conforming to federal section 179 expensing 
1.7 	allowances;amending Minnesota Statutes 2008, sections 116D.04, subdivisions 
1.8 	2a, 3a, 11, 13, by adding subdivisions; 290.06, by adding a subdivision; 
1.9 	Minnesota Statutes 2009 Supplement, section 290.01, subdivisions 19a, 19c; 
1.10 	proposing coding for new law in Minnesota Statutes, chapters 16E; 43A; 116J; 
1.11 	290; repealing Minnesota Statutes 2008, sections 116D.04, subdivisions 4a, 5a, 
1.12 	9, 10; 116D.045, subdivisions 1, 2, 3, 4.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. [16E.23] ELECTRONIC LICENSING; ENVIRONMENTAL 
1.15 	ASSESSMENT WORKSHEETS.
1.16 	The statewide electronic licensing system must provide a means for responsible 
1.17 	governmental units to complete environmental assessment worksheets online, and must 
1.18 	include online templates that will assist responsible governmental units in completing 
1.19 	these worksheets.

1.20 	EFFECTIVE DATE. This section is effective July 1, 2011.

1.21 	Sec. 2. [43A.3175] MINNESOTA FARMERS INSURANCE POOL.
1.22 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined 
1.23 	have the meanings given.
1.24 	(b) "Commissioner" means the commissioner of management and budget.
1.25 	(c) "Eligible person" means a farmer or dependent of a farmer.
2.1 	(d) "Farmer" means an individual who devotes more than 50 percent of the 
2.2 	individual's work time within a calendar year to farming in this state as an owner, 
2.3 	employee, or independent contractor of a farm or farm-processing facility.
2.4 	(e) "Pool" means the Minnesota farmers insurance pool created in this section.
2.5 	(f) "The insurer" means the insurer or insurers, whether singular or plural, that 
2.6 	contract with the commissioner to provide health coverage under this section.
2.7 		Subd. 2.Creation and operation of pool. (a) The commissioner shall create and 
2.8 	administer the Minnesota farmers insurance pool, including:
2.9 	(1) contracting for individual health insurance with one or more insurers licensed to 
2.10 	provide health coverage in this state, in the commissioner's discretion;
2.11 	(2) designing at least two benefit sets that offer varying levels of coverage and 
2.12 	cost. One of the benefit sets need not comply with mandated benefits otherwise required 
2.13 	under state law and must be designed to permit lower premiums due to appropriate use of 
2.14 	deductibles, co-pays, and other enrollee cost-sharing; and
2.15 	(3) engaging in outreach activities to publicize the availability of coverage under 
2.16 	the pool.
2.17 	(b) The insurer contracted under paragraph (a) shall enroll any eligible person who 
2.18 	applies for coverage under one of the two benefit sets and pays the premium to the 
2.19 	insurer, except that the insurer need not enroll a person who is eligible for coverage by the 
2.20 	Minnesota Comprehensive Health Association under chapter 62E.
2.21 	(c) The insurer shall process and pay claims and otherwise perform the customary 
2.22 	duties of an insurer.
2.23 	(d) The coverage may be restricted to a network of providers under contract with 
2.24 	the insurer, provided that the provider network makes care available within a reasonable 
2.25 	distance in all parts of the state.
2.26 	(e) The commissioner shall recover costs incurred by the commissioner in 
2.27 	connection with creation and operation of the pool from the insurer out of premiums 
2.28 	paid to the insurer, based upon an annual certification of those costs to the insurer by 
2.29 	the commissioner.

2.30 	EFFECTIVE DATE. This section is effective for coverage to begin January 1, 2011.

2.31 	Sec. 3. Minnesota Statutes 2008, section 116D.04, subdivision 2a, is amended to read:
2.32 		Subd. 2a.When prepared. Where there is potential for significant environmental 
2.33 	effects resulting from any major governmental action, the action shall be preceded by a 
2.34 	detailed environmental impact statement prepared by the responsible governmental unit. 
2.35 	A responsible governmental unit may contract for the preparation of an environmental 
3.1 	impact statement. The environmental impact statement shall be an analytical rather than 
3.2 	an encyclopedic document which describes the proposed action in detail, analyzes its 
3.3 	significant environmental impacts, discusses appropriate alternatives to the proposed 
3.4 	action and their impacts, and explores methods by which adverse environmental impacts 
3.5 	of an action could be mitigated. The environmental impact statement shall also analyze 
3.6 	those economic, employment and sociological effects that cannot be avoided should 
3.7 	the action be implemented. To ensure its use in the decision-making process, the 
3.8 	environmental impact statement shall be prepared as rapidly and early as practical in the 
3.9 	formulation of an action. No mandatory environmental impact statement may be required 
3.10 	for an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b), that 
3.11 	produces less than 125,000,000 gallons of ethanol annually and is located outside of the 
3.12 	seven-county metropolitan area. 
3.13 	(a) The board shall by rule establish categories of actions for which environmental 
3.14 	impact statements and for which environmental assessment worksheets shall be prepared 
3.15 	as well as categories of actions for which no environmental review is required under 
3.16 	this section.
3.17 	(b) The responsible governmental unit shall promptly publish notice of the 
3.18 	completion of an environmental assessment worksheet in a manner to be determined by 
3.19 	the board and shall provide copies of the environmental assessment worksheet to the board 
3.20 	and its member agencies. Comments on the need for an environmental impact statement 
3.21 	may be submitted to the responsible governmental unit during a 30 day period following 
3.22 	publication of the notice that an environmental assessment worksheet has been completed. 
3.23 	The responsible governmental unit's decision on the need for an environmental impact 
3.24 	statement shall be based on the environmental assessment worksheet and the comments 
3.25 	received during the comment period, and shall be made within 15 days after the close of 
3.26 	the comment period. The board's chair may extend the 15 day period by not more than 15 
3.27 	additional days upon the request of the responsible governmental unit.
3.28 	(c) An environmental assessment worksheet shall also be prepared for a proposed 
3.29 	action whenever material evidence accompanying a petition by not less than 25 
3.30 	individuals, submitted before the proposed project has received final approval by the 
3.31 	appropriate governmental units, demonstrates that, because of the nature or location of a 
3.32 	proposed action, there may be potential for significant environmental effects. Petitions 
3.33 	requesting the preparation of an environmental assessment worksheet shall be submitted to 
3.34 	the board. The chair of the board shall determine the appropriate responsible governmental 
3.35 	unit and forward the petition to it. A decision on the need for an environmental assessment 
3.36 	worksheet shall be made by the responsible governmental unit within 15 days after the 
4.1 	petition is received by the responsible governmental unit. The board's chair may extend 
4.2 	the 15 day period by not more than 15 additional days upon request of the responsible 
4.3 	governmental unit.
4.4 	(d) (c) Except in an environmentally sensitive location where Minnesota Rules, part 
4.5 	4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental 
4.6 	review under this chapter and rules of the board, if:
4.7 	(1) the proposed action is:
4.8 	(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
4.9 	(ii) an expansion of an existing animal feedlot facility with a total cumulative 
4.10 	capacity of less than 1,000 animal units;
4.11 	(2) the application for the animal feedlot facility includes a written commitment by 
4.12 	the proposer to design, construct, and operate the facility in full compliance with Pollution 
4.13 	Control Agency feedlot rules; and
4.14 	(3) the county board holds a public meeting for citizen input at least ten business 
4.15 	days prior to the Pollution Control Agency or county issuing a feedlot permit for the 
4.16 	animal feedlot facility unless another public meeting for citizen input has been held with 
4.17 	regard to the feedlot facility to be permitted. The exemption in this paragraph is in 
4.18 	addition to other exemptions provided under other law and rules of the board.
4.19 	(e) The board may, prior to final approval of a proposed project, require preparation 
4.20 	of an environmental assessment worksheet by a responsible governmental unit selected 
4.21 	by the board for any action where environmental review under this section has not been 
4.22 	specifically provided for by rule or otherwise initiated.
4.23 	(f) (d) An early and open expedited process shall be utilized to limit the scope of 
4.24 	the environmental impact statement to a discussion of those impacts, which, because of 
4.25 	the nature or location of the project, have the potential for significant environmental 
4.26 	effects. The same process shall be utilized to determine the form, content and level of 
4.27 	detail of the statement as well as the alternatives which are appropriate for consideration 
4.28 	in the statement. In addition, the permits which will be required for the proposed action 
4.29 	shall be identified during the scoping process. Further, the process shall identify those 
4.30 	permits for which information will be developed concurrently with the environmental 
4.31 	impact statement. The board shall provide in its rules for the expeditious completion of 
4.32 	the scoping process. The determinations reached in the process shall be incorporated into 
4.33 	the order requiring the preparation of an environmental impact statement.
4.34 	(g) (e) Whenever practical, information needed by a governmental unit for making 
4.35 	final decisions on permits or other actions required for a proposed project shall be 
4.36 	developed in conjunction with the preparation of an environmental impact statement.
5.1 	(h) (f) An environmental impact statement shall be prepared and its adequacy 
5.2 	determined within 280 120 days after notice of its preparation unless the time is extended 
5.3 	by consent of the parties or by the governor for good cause. The responsible governmental 
5.4 	unit shall determine the adequacy of an environmental impact statement, unless within 60 
5.5 	days after notice is published that an environmental impact statement will be prepared, 
5.6 	the board chooses to determine the adequacy of an environmental impact statement. If an 
5.7 	environmental impact statement is found to be inadequate, the responsible governmental 
5.8 	unit shall have 60 45 days to prepare an adequate environmental impact statement. If the 
5.9 	responsible governmental unit fails to act within the time required under this paragraph, 
5.10 	the environmental impact statement is deemed adequate, unless a written contract of 
5.11 	exception has been agreed to by the project proposer.
5.12 	(g) The total time allowed for public comments during an environmental assessment 
5.13 	worksheet or environmental impact statement process shall be 30 days.

5.14 	Sec. 4. Minnesota Statutes 2008, section 116D.04, subdivision 3a, is amended to read:
5.15 		Subd. 3a.Final decisions. Within 90 60 days after final approval of an 
5.16 	environmental impact statement, final decisions shall be made by the appropriate 
5.17 	governmental units on those permits which were identified as required and for which 
5.18 	information was developed concurrently with the preparation of the environmental impact 
5.19 	statement. Provided, however, that the 90-day 60-day period may be extended where a 
5.20 	longer period is required by federal law or state statute or is consented to by the permit 
5.21 	applicant. The permit decision shall include the reasons for the decision, including 
5.22 	any conditions under which the permit is issued, together with a final order granting or 
5.23 	denying the permit.

5.24 	Sec. 5. Minnesota Statutes 2008, section 116D.04, subdivision 11, is amended to read:
5.25 		Subd. 11.Failure to act. If the board or governmental unit which is required to 
5.26 	act within a time period specified in this section fails to so act, any person may seek an 
5.27 	order of the district court requiring the board or governmental unit to immediately take 
5.28 	the action mandated by subdivisions 2a and 3a the permit or other government action 
5.29 	necessary is deemed approved and the project proposer may proceed with the project.

5.30 	Sec. 6. Minnesota Statutes 2008, section 116D.04, subdivision 13, is amended to read:
5.31 		Subd. 13.Enforcement. This section may be enforced by injunction, action to 
5.32 	compel performance, or other appropriate action in the district court of the county where 
6.1 	the violation takes place. Upon the request of the board or the chair of the board, the 
6.2 	attorney general may bring an action under this subdivision.

6.3 	Sec. 7. Minnesota Statutes 2008, section 116D.04, is amended by adding a subdivision 
6.4 	to read:
6.5 		Subd. 14.Environmental review costs. The responsible governmental unit 
6.6 	and any other governmental units participating in the preparation or distribution of an 
6.7 	environmental assessment worksheet or environmental impact statement is responsible 
6.8 	for the costs of preparing and distributing the environmental assessment worksheet or 
6.9 	environmental impact statement and shall not charge a project proposer for those costs.

6.10 	Sec. 8. Minnesota Statutes 2008, section 116D.04, is amended by adding a subdivision 
6.11 	to read:
6.12 		Subd. 15.Rules. The board shall, by June 30, 2011, amend rules to conform to 
6.13 	the changes to this section. The rules adopted under this section are not subject to the 
6.14 	rulemaking procedures of chapter 14 and section 14.386 does not apply. Subsequent 
6.15 	rulemaking authority under this section must be explicitly authorized by the legislature.

6.16 	Sec. 9. [116J.8737] JOB GROWTH INVESTMENT TAX CREDIT.
6.17 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
6.18 	have the meanings given.
6.19 	(b) "Qualifying small business" means a business that:
6.20 	(1) is engaged in, or is committed to engage in, biotechnology, technology, 
6.21 	manufacturing, agriculture, processing or assembling products, conducting research and 
6.22 	development, or developing a new product or business process;
6.23 	(2) is not engaged in real estate development, insurance, banking, lobbying, political 
6.24 	consulting, wholesale or retail trade, leisure, hospitality, construction, or professional 
6.25 	services provided by attorneys, accountants, business consultants, physicians, or health 
6.26 	care consultants;
6.27 	(3) has its headquarters in Minnesota;
6.28 	(4) employs at least 51 percent of the business's employees in Minnesota;
6.29 	(5) has less than 100 employees;
6.30 	(6) has less than $2,000,000 in annual gross sales receipts for the previous year;
6.31 	(7) is not a subsidiary or an affiliate of a business which employs more than 100 
6.32 	employees or has total gross sales receipts for the previous year of more than $2,000,000, 
7.1 	computed by aggregating all of the employees and gross sales receipts of the business 
7.2 	entities affiliated with the business;
7.3 	(8) has not previously received more than $2,000,000 in private equity investments;
7.4 	(9) has not previously received more than $500,000 in investments that have 
7.5 	qualified for and received tax credits under this section; and
7.6 	(10) for a business with five or more employees, measured on a full-time equivalent 
7.7 	basis:
7.8 	(i) provides wages and benefits to at least 75 percent of its employees in excess of 
7.9 	the first five employees, equal to or greater than 175 percent of the federal poverty level 
7.10 	for a family of four; and
7.11 	(ii) provides wages and benefits to its employees in excess of the first five employees, 
7.12 	equal to or greater than 110 percent of the federal poverty level for a family of four.
7.13 	(c) "Qualifying green job small business" means a business that satisfies all of the 
7.14 	requirements of paragraph (b), except clause (1), and is predominantly engaged in one 
7.15 	or more of the following industry sectors:
7.16 	(1) green products: businesses related to the manufacture of products used by 
7.17 	the building, transport, consumer products, and industrial products sectors, that reduce 
7.18 	environmental impact and increase the efficiency of the use of resources such as energy, 
7.19 	water, and materials;
7.20 	(2) renewable energy: businesses related to the production of energy from natural 
7.21 	resources such as solar, wind, hydropower, geothermal, biomass (including but not limited 
7.22 	to animal waste and crop waste), and biofuels (including but not limited to ethanol and 
7.23 	biodiesel), as well as from waste heat recovery and from the use of biomass for energy 
7.24 	production including cogeneration;
7.25 	(3) green services: businesses that provide services that help other businesses or 
7.26 	consumers utilize green products and technologies, build energy infrastructure, recycle, 
7.27 	and manage waste; or
7.28 	(4) environmental conservation: businesses related to the conservation of energy, 
7.29 	air, water, and land, including air emissions control, environmental monitoring and 
7.30 	compliance, water conservation, wastewater treatment, land management (including but 
7.31 	not limited to prairie), natural pesticides, aquaculture, and organic farming.
7.32 	(d) "Regional investment fund" means a pooled investment fund that:
7.33 	(1) invests in qualifying small businesses;
7.34 	(2) invests in qualifying green job small businesses;
7.35 	(3) is organized as a limited liability company or other pass-through entity; and
8.1 	(4) has no fewer than five separate investors, each of whom is a qualified taxpayer, as 
8.2 	defined in paragraph (e), and owns no more than 20 percent of the outstanding ownership 
8.3 	interests in the fund.
8.4 	For purposes of determining the number of investors and the ownership interests of 
8.5 	an investor under this clause, the ownership interests of an investor include those of the 
8.6 	investor's spouse, children, or siblings, and any corporation, limited liability company, 
8.7 	partnership, or trust in which the investor has a controlling equity interest or in which the 
8.8 	investor exercises management control.
8.9 	(e) "Qualified taxpayer" means:
8.10 	(1) an accredited investor, within the meaning of Regulation D of the Securities and 
8.11 	Exchange Commission, Code of Federal Regulations, title 17, section 230.501(a), whether 
8.12 	part of a pass-through entity or not, who:
8.13 	(i) does not own, control, or hold power to vote 20 percent or more of the outstanding 
8.14 	securities of the qualifying small business or the qualifying green job small business in 
8.15 	which the eligible investment is proposed; or
8.16 	(ii) does not receive more than 50 percent of the gross annual income from the 
8.17 	qualifying small business or the qualifying green job small business in which the eligible 
8.18 	investment is proposed.
8.19 	(2) A member of the immediate family of a taxpayer disqualified by this subdivision 
8.20 	is not eligible for a credit under this section. For purposes of this subdivision, "immediate 
8.21 	family" means the taxpayer's spouse, parent, sibling, or child, or the spouse of any person 
8.22 	listed in this paragraph.
8.23 		Subd. 2.Credit allowed, holding period, limitations, and carryover. (a) A 
8.24 	qualified taxpayer is allowed a credit against the tax imposed under chapter 290 for 
8.25 	investments made in a qualified regional investment fund, a qualifying small business, 
8.26 	or a qualifying green job small business. The credit equals 25 percent of the qualified 
8.27 	taxpayer's investment in the business, but not to exceed the lesser of:
8.28 	(1) the liability for tax under chapter 290, including the applicable alternative 
8.29 	minimum tax, but excluding the minimum fee under section 290.0922, and:
8.30 	(2)(i) the amount of the certificate provided to the taxpayer under subdivision 
8.31 	4, paragraph (c); or
8.32 	(ii) the amount of the certificate provided to the qualified individual investor under 
8.33 	subdivision 6, paragraph (d).
8.34 	(b) No taxpayer may receive more than $100,000 in provisional credits under this 
8.35 	section in any one year.
9.1 	(c) A qualified taxpayer must claim the credit in the third tax year after which the 
9.2 	investment in the qualified regional investment fund, the qualifying small business, or the 
9.3 	qualifying green job small business was made. The credit is allowed only for investments 
9.4 	made in:
9.5 	(1) a qualified regional investment fund that remains invested for at least three 
9.6 	years and that are made after the fund has been certified by the commissioner under 
9.7 	subdivision 4;
9.8 	(2) a qualifying small business that remains invested for at least three years and that 
9.9 	are made after the qualified individual investor has been certified by the commissioner 
9.10 	under subdivision 6; or
9.11 	(3) a qualifying green job small business that remains invested for at least three 
9.12 	years and that are made after the qualified individual investor has been certified by the 
9.13 	commissioner under subdivision 6.
9.14 	(d) The three-year investment holding period required by paragraph (c) does not 
9.15 	apply if:
9.16 	(1) the investment by the qualified regional investment fund or the qualified 
9.17 	individual investor becomes worthless before the end of the three-year period; or
9.18 	(2) the qualifying small business or qualifying green job small business is sold 
9.19 	before the end of the three-year period.
9.20 	(e) If the amount of the credit under this subdivision for any taxable year exceeds 
9.21 	the limitations under paragraph (a), the excess is a credit carryover to each of the ten 
9.22 	succeeding taxable years. The entire amount of the excess unused credit for the taxable 
9.23 	year must be carried first to the earliest of the taxable years to which the credit may be 
9.24 	carried. The amount of the unused credit that may be added under this paragraph may not 
9.25 	exceed the taxpayer's liability for tax less the credit for the taxable year.
9.26 		Subd. 3.Qualified regional investment fund; requirements. (a) To be certified as 
9.27 	a qualified regional investment fund for the purposes of this section, a regional investment 
9.28 	fund must:
9.29 	(1) have a minimum of two-thirds of the regional investment fund's members, 
9.30 	shareholders, or partners be residents of the region that is the focus of the fund;
9.31 	(2) allocate at least 60 percent of the funds it invests to qualifying small businesses 
9.32 	or to qualifying green job small businesses within its region of focus; and
9.33 	(3) allocate at least 50 percent of the funds it invests to qualifying green job small 
9.34 	businesses.
9.35 	(b) The allocations in paragraph (a), clauses (2) and (3), need not be exclusive.
10.1 	(c) Investments from other qualified regional investment funds into the qualifying 
10.2 	small businesses or qualifying green job small businesses that are the recipients of the 
10.3 	qualified regional investment fund's investment shall count toward the allocations in 
10.4 	paragraph (a), clauses (2) and (3).
10.5 	(d) Investments in the fund may consist of equity investments or notes that pay 
10.6 	interest or other fixed amounts, or any combination of both, as the fund's governing body 
10.7 	determines appropriate.
10.8 		Subd. 4.Certification of funds. (a) Regional investment funds may apply to the 
10.9 	commissioner for certification as a qualified regional investment fund. The application 
10.10 	must be in the form and be made under the procedures specified by the commissioner, 
10.11 	accompanied by an application fee of $1,250. Fees are appropriated to the commissioner 
10.12 	for personnel and administrative expenses related to administering the program.
10.13 	(b) The commissioner may certify up to 20 regional investment funds per year. 
10.14 	Certifications shall be awarded in the order of the qualifying applications received, subject 
10.15 	to the following limitations:
10.16 	(1) the commissioner may certify no more than three regional investment funds per 
10.17 	year that seek business investment opportunities that may qualify for and receive tax 
10.18 	credits under this section in more than 15 Minnesota counties; and
10.19 	(2) the commissioner may certify no more than five regional investment funds 
10.20 	per year that seek business investment opportunities that may qualify for and receive 
10.21 	tax credits under this section in the metropolitan area, as defined in section 473.121, 
10.22 	subdivision 2.
10.23 	(c) The commissioner shall provide provisional credit certificates to investors in a 
10.24 	qualified regional fund to credits under this section, in proportion to the investment of 
10.25 	the investor in the fund and upon a showing by the fund of an investment in a qualifying 
10.26 	small business or qualifying green job small business, of no more than $500,000 per fund 
10.27 	per year. The commissioner may not issue a total of more than $2,000,000 per year in 
10.28 	provisional credit certificates to fund investors in fiscal years 2011, 2012, 2013, and 2014.
10.29 	(d) The commissioner shall provide a final credit certificate to investors in the fund 
10.30 	upon a showing by the fund that the holding requirements of subdivision 2, paragraph (b), 
10.31 	have been met and that the investors in the fund are otherwise eligible for the credit.
10.32 		Subd. 5.Fund requirements. The commissioner shall enter into an agreement 
10.33 	with each of the qualified regional investment funds certified under subdivision 4. Each 
10.34 	agreement must include a provision requiring the qualified regional investment fund to 
10.35 	annually report on the employment figures and wages and benefits paid by the businesses 
10.36 	in which investments are made and a provision stating the specific manner in which 
11.1 	the qualified regional investment fund will comply or is complying with the allocation 
11.2 	requirements under subdivision 3, paragraph (a), clauses (2) and (3).
11.3 		Subd. 6.Certification of individual investors. (a) Qualified taxpayers may apply 
11.4 	to the commissioner of employment and economic development for certification as a 
11.5 	qualified individual investor. The application must be in the form and be made under the 
11.6 	procedures specified by the commissioner, accompanied by an application fee of $250. 
11.7 	Fees are appropriated to the commissioner for personnel and administrative expenses 
11.8 	related to administering the program.
11.9 	(b) The commissioner may certify up to 40 qualified individual investors per year. 
11.10 	Certifications shall be awarded in the order of qualifying applications received, however 
11.11 	the commissioner may certify no more than ten qualified individual investors per year that 
11.12 	seek business investment opportunities that may qualify for and receive tax credits under 
11.13 	this section in the metropolitan area, as defined in section 473.121, subdivision 2.
11.14 	(c) The commissioner shall provide provisional credit certificates to qualified 
11.15 	individual investors, upon a showing by the qualified individual investor of investments of 
11.16 	at least $25,000 in qualifying small businesses or qualifying green job small businesses; at 
11.17 	least one-half of the investments made by the investor must be in qualifying green job 
11.18 	businesses. The commissioner may not issue more than $100,000 in provisional credit 
11.19 	certificates per qualified individual investor per year. The commissioner may not issue 
11.20 	a total of more than $1,000,000 per year in provisional credit certificates to qualified 
11.21 	individual investors in fiscal years 2011, 2012, 2013, and 2014.
11.22 	(d) The commissioner shall provide a final credit certificate to the qualified individual 
11.23 	investor upon a showing by the investor that the holding requirements of subdivision 2, 
11.24 	paragraph (c), have been met and that the investor is otherwise eligible for the credit.
11.25 		Subd. 7.Qualified individual investor requirements. The commissioner shall 
11.26 	enter into an agreement with each qualified individual investor certified under subdivision 
11.27 	6. Each agreement must include a provision requiring the qualified individual investor to 
11.28 	annually report on the employment figures and wages and benefits paid by the businesses 
11.29 	in which investments are made and a provision stating the specific manner in which the 
11.30 	qualified individual investor will comply or is complying with the allocation requirements 
11.31 	under subdivision 6, paragraph (c).
11.32 		Subd. 8.Rulemaking. The commissioner's actions in establishing procedures and 
11.33 	requirements and in making determinations and certifications to administer this section are 
11.34 	not a rule for purposes of chapter 14, are not subject to the Administrative Procedures Act 
11.35 	contained in chapter 14, and are not subject to section 14.386.

12.1 	EFFECTIVE DATE. This section is effective July 1, 2010, for taxable years 
12.2 	beginning after December 31, 2009, and only applies to investments made after the 
12.3 	qualified regional investment fund or qualified individual investor has been certified by 
12.4 	the commissioner of economic development.

12.5 	Sec. 10. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19a, 
12.6 	is amended to read:
12.7 		Subd. 19a.Additions to federal taxable income. For individuals, estates, and 
12.8 	trusts, there shall be added to federal taxable income:
12.9 	(1)(i) interest income on obligations of any state other than Minnesota or a political 
12.10 	or governmental subdivision, municipality, or governmental agency or instrumentality 
12.11 	of any state other than Minnesota exempt from federal income taxes under the Internal 
12.12 	Revenue Code or any other federal statute; and
12.13 	(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue 
12.14 	Code, except the portion of the exempt-interest dividends derived from interest income 
12.15 	on obligations of the state of Minnesota or its political or governmental subdivisions, 
12.16 	municipalities, governmental agencies or instrumentalities, but only if the portion of the 
12.17 	exempt-interest dividends from such Minnesota sources paid to all shareholders represents 
12.18 	95 percent or more of the exempt-interest dividends that are paid by the regulated 
12.19 	investment company as defined in section 851(a) of the Internal Revenue Code, or the 
12.20 	fund of the regulated investment company as defined in section 851(g) of the Internal 
12.21 	Revenue Code, making the payment; and
12.22 	(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal 
12.23 	government described in section 7871(c) of the Internal Revenue Code shall be treated as 
12.24 	interest income on obligations of the state in which the tribe is located;
12.25 	(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid 
12.26 	or accrued within the taxable year under this chapter and the amount of taxes based on 
12.27 	net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other 
12.28 	state or to any province or territory of Canada, to the extent allowed as a deduction 
12.29 	under section 63(d) of the Internal Revenue Code, but the addition may not be more 
12.30 	than the amount by which the itemized deductions as allowed under section 63(d) of 
12.31 	the Internal Revenue Code exceeds the amount of the standard deduction as defined in 
12.32 	section 63(c) of the Internal Revenue Code, disregarding the amounts allowed under 
12.33 	sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of 
12.34 	this paragraph, the disallowance of itemized deductions under section 68 of the Internal 
13.1 	Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are 
13.2 	the last itemized deductions disallowed;
13.3 	(3) the capital gain amount of a lump-sum distribution to which the special tax under 
13.4 	section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
13.5 	(4) the amount of income taxes paid or accrued within the taxable year under this 
13.6 	chapter and taxes based on net income paid to any other state or any province or territory 
13.7 	of Canada, to the extent allowed as a deduction in determining federal adjusted gross 
13.8 	income. For the purpose of this paragraph, income taxes do not include the taxes imposed 
13.9 	by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
13.10 	(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 
13.11 	other than expenses or interest used in computing net interest income for the subtraction 
13.12 	allowed under subdivision 19b, clause (1);
13.13 	(6) the amount of a partner's pro rata share of net income which does not flow 
13.14 	through to the partner because the partnership elected to pay the tax on the income under 
13.15 	section 6242(a)(2) of the Internal Revenue Code;
13.16 	(7) 80 percent of the depreciation deduction allowed under section 168(k) of the 
13.17 	Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that 
13.18 	in the taxable year generates a deduction for depreciation under section 168(k) and the 
13.19 	activity generates a loss for the taxable year that the taxpayer is not allowed to claim for 
13.20 	the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is 
13.21 	limited to excess of the depreciation claimed by the activity under section 168(k) over the 
13.22 	amount of the loss from the activity that is not allowed in the taxable year. In succeeding 
13.23 	taxable years when the losses not allowed in the taxable year are allowed, the depreciation 
13.24 	under section 168(k) is allowed;
13.25 	(8) for property placed in service before January 1, 2010, 80 percent of the amount 
13.26 	by which the deduction allowed by section 179 of the Internal Revenue Code exceeds the 
13.27 	deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended 
13.28 	through December 31, 2003;
13.29 	(9) to the extent deducted in computing federal taxable income, the amount of the 
13.30 	deduction allowable under section 199 of the Internal Revenue Code;
13.31 	(10) the exclusion allowed under section 139A of the Internal Revenue Code for 
13.32 	federal subsidies for prescription drug plans;
13.33 	(11) the amount of expenses disallowed under section 290.10, subdivision 2;
13.34 	(12) the amount deducted for qualified tuition and related expenses under section 
13.35 	222 of the Internal Revenue Code, to the extent deducted from gross income;
14.1 	(13) the amount deducted for certain expenses of elementary and secondary school 
14.2 	teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted 
14.3 	from gross income;
14.4 	(14) the additional standard deduction for property taxes payable that is allowable 
14.5 	under section 63(c)(1)(C) of the Internal Revenue Code;
14.6 	(15) the additional standard deduction for qualified motor vehicle sales taxes 
14.7 	allowable under section 63(c)(1)(E) of the Internal Revenue Code;
14.8 	(16) discharge of indebtedness income resulting from reacquisition of business 
14.9 	indebtedness and deferred under section 108(i) of the Internal Revenue Code; and
14.10 	(17) the amount of unemployment compensation exempt from tax under section 
14.11 	85(c) of the Internal Revenue Code.

14.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
14.13 	December 31, 2009.

14.14 	Sec. 11. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19c, 
14.15 	is amended to read:
14.16 		Subd. 19c.Corporations; additions to federal taxable income. For corporations, 
14.17 	there shall be added to federal taxable income:
14.18 	(1) the amount of any deduction taken for federal income tax purposes for income, 
14.19 	excise, or franchise taxes based on net income or related minimum taxes, including but not 
14.20 	limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 
14.21 	another state, a political subdivision of another state, the District of Columbia, or any 
14.22 	foreign country or possession of the United States;
14.23 	(2) interest not subject to federal tax upon obligations of: the United States, its 
14.24 	possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 
14.25 	state, any of its political or governmental subdivisions, any of its municipalities, or any 
14.26 	of its governmental agencies or instrumentalities; the District of Columbia; or Indian 
14.27 	tribal governments;
14.28 	(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 
14.29 	Revenue Code;
14.30 	(4) the amount of any net operating loss deduction taken for federal income tax 
14.31 	purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 
14.32 	deduction under section 810 of the Internal Revenue Code;
14.33 	(5) the amount of any special deductions taken for federal income tax purposes 
14.34 	under sections 241 to 247 and 965 of the Internal Revenue Code;
15.1 	(6) losses from the business of mining, as defined in section 290.05, subdivision 1, 
15.2 	clause (a), that are not subject to Minnesota income tax;
15.3 	(7) the amount of any capital losses deducted for federal income tax purposes under 
15.4 	sections 1211 and 1212 of the Internal Revenue Code;
15.5 	(8) the exempt foreign trade income of a foreign sales corporation under sections 
15.6 	921(a) and 291 of the Internal Revenue Code;
15.7 	(9) the amount of percentage depletion deducted under sections 611 through 614 and 
15.8 	291 of the Internal Revenue Code;
15.9 	(10) for certified pollution control facilities placed in service in a taxable year 
15.10 	beginning before December 31, 1986, and for which amortization deductions were elected 
15.11 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
15.12 	31, 1985, the amount of the amortization deduction allowed in computing federal taxable 
15.13 	income for those facilities;
15.14 	(11) the amount of any deemed dividend from a foreign operating corporation 
15.15 	determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend 
15.16 	shall be reduced by the amount of the addition to income required by clauses (20), (21), 
15.17 	(22), and (23);
15.18 	(12) the amount of a partner's pro rata share of net income which does not flow 
15.19 	through to the partner because the partnership elected to pay the tax on the income under 
15.20 	section 6242(a)(2) of the Internal Revenue Code;
15.21 	(13) the amount of net income excluded under section 114 of the Internal Revenue 
15.22 	Code;
15.23 	(14) any increase in subpart F income, as defined in section 952(a) of the Internal 
15.24 	Revenue Code, for the taxable year when subpart F income is calculated without regard to 
15.25 	the provisions of Division C, title III, section 303(b) of Public Law 110-343;
15.26 	(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) 
15.27 	and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer 
15.28 	has an activity that in the taxable year generates a deduction for depreciation under 
15.29 	section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year 
15.30 	that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed 
15.31 	under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the 
15.32 	depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the 
15.33 	amount of the loss from the activity that is not allowed in the taxable year. In succeeding 
15.34 	taxable years when the losses not allowed in the taxable year are allowed, the depreciation 
15.35 	under section 168(k)(1)(A) and (k)(4)(A) is allowed;
16.1 	(16) for property placed in service before January 1, 2010, 80 percent of the amount 
16.2 	by which the deduction allowed by section 179 of the Internal Revenue Code exceeds the 
16.3 	deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended 
16.4 	through December 31, 2003;
16.5 	(17) to the extent deducted in computing federal taxable income, the amount of the 
16.6 	deduction allowable under section 199 of the Internal Revenue Code;
16.7 	(18) the exclusion allowed under section 139A of the Internal Revenue Code for 
16.8 	federal subsidies for prescription drug plans;
16.9 	(19) the amount of expenses disallowed under section 290.10, subdivision 2;
16.10 	(20) an amount equal to the interest and intangible expenses, losses, and costs paid, 
16.11 	accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit 
16.12 	of a corporation that is a member of the taxpayer's unitary business group that qualifies 
16.13 	as a foreign operating corporation. For purposes of this clause, intangible expenses and 
16.14 	costs include:
16.15 	(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, 
16.16 	use, maintenance or management, ownership, sale, exchange, or any other disposition of 
16.17 	intangible property;
16.18 	(ii) losses incurred, directly or indirectly, from factoring transactions or discounting 
16.19 	transactions;
16.20 	(iii) royalty, patent, technical, and copyright fees;
16.21 	(iv) licensing fees; and
16.22 	(v) other similar expenses and costs.
16.23 	For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 
16.24 	applications, trade names, trademarks, service marks, copyrights, mask works, trade 
16.25 	secrets, and similar types of intangible assets.
16.26 	This clause does not apply to any item of interest or intangible expenses or costs paid, 
16.27 	accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect 
16.28 	to such item of income to the extent that the income to the foreign operating corporation 
16.29 	is income from sources without the United States as defined in subtitle A, chapter 1, 
16.30 	subchapter N, part 1, of the Internal Revenue Code;
16.31 	(21) except as already included in the taxpayer's taxable income pursuant to clause 
16.32 	(20), any interest income and income generated from intangible property received or 
16.33 	accrued by a foreign operating corporation that is a member of the taxpayer's unitary 
16.34 	group. For purposes of this clause, income generated from intangible property includes:
16.35 	(i) income related to the direct or indirect acquisition, use, maintenance or 
16.36 	management, ownership, sale, exchange, or any other disposition of intangible property;
17.1 	(ii) income from factoring transactions or discounting transactions;
17.2 	(iii) royalty, patent, technical, and copyright fees;
17.3 	(iv) licensing fees; and
17.4 	(v) other similar income.
17.5 	For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 
17.6 	applications, trade names, trademarks, service marks, copyrights, mask works, trade 
17.7 	secrets, and similar types of intangible assets.
17.8 	This clause does not apply to any item of interest or intangible income received or accrued 
17.9 	by a foreign operating corporation with respect to such item of income to the extent that 
17.10 	the income is income from sources without the United States as defined in subtitle A, 
17.11 	chapter 1, subchapter N, part 1, of the Internal Revenue Code;
17.12 	(22) the dividends attributable to the income of a foreign operating corporation that 
17.13 	is a member of the taxpayer's unitary group in an amount that is equal to the dividends 
17.14 	paid deduction of a real estate investment trust under section 561(a) of the Internal 
17.15 	Revenue Code for amounts paid or accrued by the real estate investment trust to the 
17.16 	foreign operating corporation;
17.17 	(23) the income of a foreign operating corporation that is a member of the taxpayer's 
17.18 	unitary group in an amount that is equal to gains derived from the sale of real or personal 
17.19 	property located in the United States;
17.20 	(24) the additional amount allowed as a deduction for donation of computer 
17.21 	technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the 
17.22 	extent deducted from taxable income; and
17.23 	(25) discharge of indebtedness income resulting from reacquisition of business 
17.24 	indebtedness and deferred under section 108(i) of the Internal Revenue Code.

17.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
17.26 	December 31, 2009.

17.27 	Sec. 12. Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision 
17.28 	to read:
17.29 		Subd. 36.Job growth investment credit. A taxpayer is allowed a credit 
17.30 	as determined under section 116J.8737 against the tax imposed by this chapter. 
17.31 	Notwithstanding the certification eligibility issued by the commissioner of the Department 
17.32 	of Employment and Economic Development under section 116J.8737, the commissioner 
17.33 	may utilize any audit and examination powers under chapter 270C or 289A to the extent 
18.1 	necessary to verify that the taxpayer is eligible for the credit and to assess for the amount 
18.2 	of any improperly claimed credit.

18.3 	EFFECTIVE DATE. This section is effective July 1, 2010, for taxable years 
18.4 	beginning after December 31, 2009, and only applies to investments made after the 
18.5 	qualified regional investment fund or qualified individual investor has been certified by 
18.6 	the commissioner of economic development.

18.7 	Sec. 13. [290.0681] WATER CONSERVATION CREDIT.
18.8 		Subdivision 1.Credit allowed. A taxpayer who operates a water-intensive business 
18.9 	is allowed a credit against the tax computed under this chapter. The credit equals five 
18.10 	percent of expenses for the taxable year for purchase and installation of water recycling 
18.11 	systems that reduce water use.
18.12 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
18.13 	the meanings given.
18.14 	(b) "Water-intensive business" means:
18.15 	(i) an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b);
18.16 	(ii) a distillery licensed under section 340A.301, subdivision 6, or 340A.315, 
18.17 	subdivision 2; or
18.18 	(iii) a facility engaged in food processing, as defined in section 181.635, subdivision 
18.19 	1, paragraph (d).
18.20 	(c) "Liability for tax" means the tax imposed under this chapter reduced by the 
18.21 	sum of the nonrefundable credits allowed under this chapter, other than the credit under 
18.22 	this section.
18.23 		Subd. 3.Limitations; carryover. (a) The credit for the taxable year shall not 
18.24 	exceed the liability for tax.
18.25 	(b) If the amount of the credit determined under this section for any taxable year 
18.26 	exceeds the limitation under paragraph (a), the excess shall be a water conservation credit 
18.27 	carryover to each of the 15 succeeding taxable years. The entire amount of the excess 
18.28 	unused credit for the taxable year shall be carried first to the earliest of the taxable years to 
18.29 	which the credit may be carried and then to each successive year to which the credit may 
18.30 	be carried. The amount of the unused credit which may be added under this paragraph 
18.31 	shall not exceed the taxpayer's liability for tax less the water conservation credit for the 
18.32 	taxable year.

18.33 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
18.34 	December 31, 2009.

19.1 	Sec. 14.  REPEALER.
 19.2 	Minnesota Statutes 2008, sections 116D.04, subdivisions 4a, 5a, 9, and 10; and 
19.3 	116D.045, subdivisions 1, 2, 3, and 4, are repealed.