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S.F. No. 241 - Greater Minnesota Internship Program (First Engrossment)
 
Author: Senator Kent Eken
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: April 7, 2013



 

Section 1, subd. 1. [Definitions] Provides the following definitions:

“Eligible employer” is a taxpayer with employees in greater Minnesota.

“Eligible institution” is a Minnesota postsecondary institution or a private nonprofit, baccalaureate degree-granting college, or university located in Minnesota.

“Eligible student” is a student enrolled in an eligible institution who has completed one-half of the credits necessary for the degree or certification sought at the institution.

“Greater Minnesota” is the area outside the Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright counties.

Subd. 2. [Program established] Establishes a paid internship program for students at Minnesota public post secondary institutions or a baccalaureate degree granting nonprofit Minnesota institution, to be administered by the Office of Higher Education.  The goal of the program is to connect students with nonmetro area Minnesota employers for permanent employment in greater Minnesota. 

Subd. 3. [Program components] The internship must be at a place of employment in greater Minnesota.  A student must have completed at least one-half of a course of study and the internship must be related to the course of study.  A student is to be paid and receive academic credit for the internship.

Provides that an eligible institution must enter into written agreements with employers for the provision of an internship of at least 12 weeks in greater Minnesota.  The internship must be closely related to a course of study and provide academic credit for its successful completion. 

Requires that an eligible employer must agree with the eligible institution that the intern would not have been hired without the tax credits, did not previously work with the employer in the same or a similar job, does not replace an existing employee, and has not previously participated in the internship program.  The intern must work at least 16 hours a week and be paid at least minimum wage.  An internship required to complete an academic program does not qualify for the greater Minnesota intership program.

Subd. 4. [Tax credit allowed; limits] Authorizes an income tax credit equal to 40 percent of the intern’s compensation, limited to $4,000 per intern per year.  A credit may not be received for more than five interns in any year.  Total program income tax credits granted to all employers may not receive $5,500,000 in a fiscal year.  Requires the Office of Higher Education to allocate credits to eligible institutions for participating employers and certify the amount of the tax credit to the Department of Revenue.  

Subd. 5.  [Allocations to institutions] Requires the Office of Higher Education to allocate grants and administrative fees to institutions based on relevant criteria, including geographic distribution of work locations.

Subd. 6. [Reports to the Legislature] Requires the Office of Higher Education and the Department of Revenue to submit two reports to the legislature on the program.  The February 1, 2014, report must have cost and participation information. The February 1, 2015, report must have an effectiveness analysis.

Section 1 is effective the day following final enactment. 

Section 2 [Greater Minnesota internship credit] Authorizes a refundable credit of 40 percent of the amount paid to an intern qualifying under the internship program, or the amount certified by the Office of Higher Education under section 1.  Credits allowed to business organizations are passed through to partners, members, shareholders, or owners on a pro rata basis.  Appropriates an amount sufficient to pay claims for the credits, and 10 percent of the credits authorized to pay for administrative costs of the program.  Effective beginning tax year 2013.

NBP:dv   

 

 

 
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