JOBZ Cities in the Headwaters Region:

Bagley, Baudette, Bemidji, Blackduck, Clearbrook, Gonvick, Mahnomen, Park Rapids and Williams

With the exception of Bemidji, the HRDC administers the JOBZ Program in all of these communities.  In Bemidji, please contact Rita Albrecht.

Financial Benefits available through the JOBZ Program:

• Corporate Franchise Tax Exemptions
• Income Tax Exemptions
• Sales Tax Exemptions on goods and services used in the zone
• Property Tax Exemptions on commercial and industrial improvements (not on land)
• Wind Energy Production Tax Exemptions (as applicable)
• Employment Tax Credit (for high paying jobs)

For more information, see the MN Department of Revenue website.

Businesses who may be eligible to participate in the JOBZ Program:

• Businesses expanding in an existing zone
• Business startups in an existing zone
• Some business relocations
• Retail development is NOT eligible for JOBZ benefits (www.deed.state.mn.us).

Estimating the amount of tax benefits your business could receive:

To estimate the dollar value of tax benefits your business may be eligible to receive as a JOBZ Program participant, it is recommended that you use the JOBZ calculator located in DEED’s website.

The Small Business Development Center (218-755-4900) or your own business accountant can assist you with the JOBZ calculator.

Annual Wage Information:

The Business Subsidy Law requires Businesses who participate in the JOBZ Program, and who signed their Subsidy Agreement on or after July 1, 2005 to pay at least 110 percent of the federal poverty level for a family of four (Business Subsidy Legislation, Minnesota Statutes Section 469.310, Subdivision 11(g)).  This rate increase increases annually and businesses must adjust their wages accordingly by July 1st of each year.

For the time period between July 1, 2008 and June 30, 2009, this minimum wage floor is as follows:

• Employers must pay, at minimum, a wage of $11.21 per hour with benefits.

Wage Information for businesses who signed business Subsidy Agreements before July 1, 2005:

If you are a JOBZ Business who signed your Business Subsidy Agreement before July 1, 2005, please refer to the wage requirements outlined within this Agreement.  Some Business Subsidy Agreements have been written to require the annual wage increases to meet the minimum wage floor, while others have not.

Wage Information for businesses who signed Business Subsidy Agreements on or after July 1, 2005:

Employee wage increases must be in place by July 1st each year for businesses who signed their JOBZ Business Subsidy Agreement on or after July 1, 2005.

If you are a business already involved with the JOBZ program and have questions, please contact Jackie at 218-333-6530.

If you are not already involved with the JOBZ program and have questions, please contact Ryan at 218-333-6541.