Workforce Development

Veterans Hiring Tax Credit

The proposed credit would lower the disproportionately high veterans’ unemployment rate by providing an income tax credit to businesses who hire qualified veterans. Under the legislation, employers could claim one of three credits equal to 10% of wages paid to a veteran. The maximum credit would be $3,000 for each disabled veteran hired, $1,500 for each unemployed veteran hired, and $500 for each other veteran hired. There is no limit to the number of credits that a qualified employer may claim in one taxable year.

STATUS: The bill was laid over for possible inclusion in the omnibus bill. (S.F. 79) See also: Veterans

Income Tax Reciprocity

This bipartisan proposal would reinstate income tax reciprocity with Wisconsin, a condition that has not existed since 2009 when Gov. Pawlenty ended the agreement. Under the reciprocity agreement, residents of Minnesota who work in Wisconsin (and vice versa) pay income taxes only to their state of residence, regardless of where the income was earned. Minnesota would pay Wisconsin for a portion of that state’s lost revenue, and Wisconsin would do the same for Minnesota.

STATUS: The bill was laid over for possible inclusion in the omnibus bill. (S.F. 1211)

Defining Residency

The Tax Reform Division heard a bill to limit the list of items that may be taken into consideration when determining residency for income tax purposes. The location of an individuals’ attorney, CPA, or financial advisor and the place of business of a financial institution at which the individual applies for a new type of credit or opens or maintains an account may no longer be considered when determining a place of residency. The proposal also defines the terms “financial advisor” and “financial institution. “

STATUS: The bill was laid over for possible inclusion in the omnibus bill. (S.F. 745)

Workforce Housing

Senators from Greater Minnesota came together at the beginning of the 2015 Session to present their ideas to drive greater investment in workforce housing, job training, and workforce development in rural parts of the state. The Tax Committee heard stories from several business owners who identified housing shortages as real obstacles to their business development goals. See the Jobs section for more information on the Senate’s commitment to growing workforce housing across Minnesota.

NEXT IN TAXES: Business Taxes

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