2010 Legislative Summary: Legislature Passes & Governor Signs Historic Tech Legislation
2010 End-of-session Legislative Updates for:
- Angel Tax Credit and R&D Tax Credit
- Broadband
- Science & Technology Authority
- MN Entrepreneur Resource Virtual Network
- Small Business Start-Up Comparison Study
- Alternative Teacher Compensation
Angel Tax Credit and R&D Tax Credit
Status: Passed
Creation of an angel tax credit and expansion of the R&D tax credit passed March 29, 2010 and was signed by the governor on April 1, 2010. Select this link to see the legislation. MHTA has been a strong advocate for both of these actions and played a key role in the bill's passage. David Minkkinen, chair of MHTA's Government Affairs Committee and member of the association's board of directors joined the governor at the bill signing ceremony.
Angel Tax Credit
We believe the creation of an angel tax credit is a significant step forward in creating a 21st-century knowledge economy tax code that promotes investments in innovation, entrepreneurship and emerging high tech companies. More than 120 technology leaders signed onto a letter encouraging its passage.
The MN Dept. of Employment and Economic Development is currently working out the details of the program; however, they anticipate applications to be available this summer. The department has put together a helpful "Angel Tax Credit 101" website.
On May 24 (7:30 Registration, 8:00-9:30 program) there will be an Angel Tax Credit Panel Discussion featuring:
- John Alexander, Twin Cities Angels
- Jay Hare, PricewaterhouseCoopers
- Dan Mallin, Magnet 360
- Dan McElroy, Dept. of Employment & Economic Development
- Joy Lindsay, StarTec Investments (Moderator)
Thank you to our sponsors: The University of Minnesota Institute of Technology and Twin Cities Business Magazine.
R&D Tax Credit
Three positive changes were made to the research and development tax credit. First, it is increased from 5 percent to 10 percent for R&D expenditures below $2 million (above that the credit remains at 2.5%). Second, it makes the credit refundable. Third, partnerships and S-corporations are now eligible for the credit. These credits are paid for by repealing a low income fuel tax credit.
View additional details on the Angel Tax Credit and R&D Tax Credit here.
Requested Action: Please take a moment to thank the leaders from the House, Senate and administration for their tireless efforts to pass these proposals.
Speaker Margaret Anderson Kelliher
Rep. Ann Lenczewski, Chair,Tax Committee
Majority Leader Larry Pogemiller
Sen. Tom Bakk, Chair, Tax Committee
Commissioner of Revenue Ward Einess
Rep. Tim Mahoney, Chair, Bioscience and Workforce Development Policy and Oversight Division
Rep. Jim Davnie - chief author of angel tax credit legislation in the House
Sen. Kathy Saltzman - chief author of angel tax credit legislation in the Senate
Broadband
Status: Passed
Legislation (HF2907-Johnson/SF 2254 - Prettner Solon) that will enact the recommendations of the Minnesota Ultra High-Speed Broadband Task Force has been enacted at the Capitol. The bill states that it is a state goal that as soon as possible, but no later than 2015, all state residents and businesses have access to high speed broadband that provides minimum download speeds of 10 to 20 megabits per second and minimum upload speeds of 5 to 10 megabits per second. It also states as a goal that by 2015 Minnesota will be in the top five states for broadband speed, top five for broadband access; and top 15 when compared to countries globally for broadband penetration.
Science & Technology Authority
Status: Passed
MHTA had strong representation on the Minnesota Science & Technology Economic Development Project Committee, which recommended creating and funding a permanent structure for science and technology strategy and oversight, collaboration and planning. HF 3389 (Rep. Mahoney)/SF 3014 (Sen. Saltzman), which was passed in the final days of the legislative session as part of the Omnibus Economic Development bill, moves forward with this recommendation by creating a Science & Technology Authority to develop a technology based economic development strategy for the state to guide investments, incentives and programs to make our state more competitive.
The authority will include an advisory team made up of representatives of private industry and academia to provide technical advice about the investments, incentives and programs. The authority will replace the existing Office of Science and Technology.
MN Entrepreneur Resource Virtual Network
Status: Passed
MHTA supported legislation (HF 2839-Bunn; SF 2758-Bonoff) which will establish an Office of Entrepreneurship and Small Business Development (OESBD) with the Department of Employment and Economic Development has been enacted. The new office will develop and market a virtual network to connect entrepreneurs with statewide resources and expertise.
Small Business Start-Up Comparison Study
Status: Passed
A number of high profile companies have left Minnesota to set up shop in Wisconsin. This bill (section 33), supported by MHTA, will provide for a comparative study of state laws affecting small business start-ups in surrounding states. The study will assess how regulation affects a typical small services business, a small retail business, and a small manufacturing business.
Alternative Teacher Certification
Status: Did Not Pass
MHTA supports providing opportunities for experienced professionals to gain teacher accreditation through an alternative preparation program which would have positioned Minnesota more favorably to receive federal Race to the Top funds.
Rep. Carlos Mariani and Sen. Terri Bonoff proposed a bill (HF 3093/SF 2811) that would have provided an alternative route for individuals who have gone through rigorous teaching programs - i.e. Teach for America, to become certified to teach in Minnesota. Studies have shown that students placed with high performing teachers progress three times faster than students placed with low performing teachers.
It is likely this issue will be brought forward again next year.
Interested in more information? Contact Peter Lindstrom, VP of Public Affairs at 952-230-4551 or plindstrom@mhta.org
