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Claiming BCEZ Tax Credits

TL;DR Property tax credits are sent to the county with the EDA issued form. Income tax credits are claimed with the EDA issued form and your M1 /M4 form. 

Business Owner
A representative of the city in which your business is located must complete this form and send to the Commissioner of Employment and Economic Development (DEED) before you may claim the Enterprise Zone Credit on your income tax return or with your county auditor. Your city will return this form to you upon final approval.

How to Claim Your Enterprise Zone Credits
Property Tax Credits: If the city allows your business a property tax credit only, give the county auditor a copy of the approved form. Keep a copy for your records.


Income Tax Credits: If the city allows your business to claim enterprise zone credits on your income tax return, attach this form to your income tax return, Form M1, Individual Income Tax Return or Form M4, Corporate Franchise Tax Return. If you are filing Form M1, fill in the amount as a credit on the line for Child and Dependent Care Credit and write Enterprise Zone Credit beneath the line.


Closure within 2 Years: If your operations in the enterprise zone stop within 2 years after you claim the credits, you must repay all or part of the credits.

Restrictions: These tax reductions shall not apply if you are one of these restricted businesses: recreation or entertainment facility, golf course, country club, massage
parlor, tennis club, skating facility, racquet sports facility, hot tub facility, suntan facility, racetrack; property of a public utility; financial institution;
fraternal or veterans’ organization; a retail food or beverage facility operating under a franchise agreement that requires the business to be located in this state. (Minn. Stat. § 469.171, subd. 4)

Property Tax vs. Income Tax: The credit for property tax cannot be claimed on the business’ income tax return.

Timeframe of Claiming: If the city lists an amount for a property tax credit on line 10, the business must claim that credit with the county auditor by October 15 of the year before the year for which the business will receive the credit.

 

Information and Assistance
If you need help or additional information, contact BorderCities.DEED@state.mn.us.