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What is JOBZ?
JOBZ is a powerful new incentive for economic development. The Job Opportunity Building Zones Program (JOBZ) is available to businesses looking to start, grow or relocate to Moorhead. The program designates 476 acres of land in southeast Moorhead as areas for business investment. See a map of the Zone in Moorhead.
A variety of tax-free incentives are available for new construction in the JOB Zone for larger commercial or industrial projects. Retail, housing projects, and lower-paying service employers are not eligible for JOBZ.
With JOBZ, the City of Moorhead plans to foster new industrial, commercial and office development with a minimum building construction value of $500,000.
Projects must result in the creation of at least three full-time jobs paying at least $10.23 an hour, and all existing jobs must also pay a minimum of $10.23 per hour. All qualified commercial/industrial property owners or businesses that locate in this Zone will be awarded a full complement of tax incentives through 2015. JOBZ incentives include:
- Property tax exemptions for all but pre-existing debt service levies (approximately a 55% reduction in Moorhead) and land through 2015.
- Exemptions from Minnesota sales tax on building materials, equipment and taxable purchases for use in the Zone through 2015.
- Capital gains tax exemption for individuals, businesses and property owners for Zone activities through 2015.
- Income tax exemption for income earned from activity in the Zone, including rental income through 2015.
- Job credit computed by determining the average annual salary for the company; the job credit is 7% of the amount in excess of $30,000 each year (after jobs earning more than $100,000 are omitted).
To calculate your potential tax savings, check out the JOBZ savings calculator.
Businesses receiving JOBZ benefits will submit annual reports of employee counts and wages through 2015. All construction workers for JOBZ projects must be paid the State Prevailing Wage. Business must meet the new construction value threshold and the employment goals included in the business subsidy agreement or the incentives may be rescinded and benefits recaptured. Special requirements apply to businesses moving from other Minnesota locations.
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