Section 1 [Exemption from job expansion program provisions], paragraph (a) provides a 10-year certification period for available tax incentives for an eligible wholesale electronic component distribution center that invests a minimum of $200,000,000 and constructs at least a 700,000 square foot facility. The current certification period allowed for a qualified expansion of greater Minnesota businesses is seven years.
Paragraph (b) allows the tax exemptions for an eligible wholesale electronic component distribution center to be authorized up to $5,000,000 annually and up to $30,000,000 during the total period of the agreement. The current sales tax exemptions are $2,000,000 annually and $10,000,000 during the total period of the agreement.
Section 2 [Business development public infrastructure program grant] appropriates $1,600,000 in fiscal year 2018 from the general fund for a grant to the city of Thief River Falls to support utility extensions, roads, and other public improvements related to the construction of a wholesale electronic component distribution center. Provides that a local match is not required. Makes the onetime appropriation available from July 1, 2017, to June 30, 2021.
Section 3 [Minnesota investment fund forgivable loan] appropriates $4,000,000 in fiscal year 2018 from the general fund for a forgivable loan to construct and equip a wholesale electronic component distribution center. Allows loan funds to be used for purchases of materials, supplies, and equipment for the construction of the facility and makes the funds available from July 1, 2017, to June 30, 2021. Requires the loan to be forgiven after verification that the project has satisfied performance goals and contractual obligations.