Minnesota Business and Investment Credits

Business and Investment Credits
2017 Schedule M1B, Business and Investment Credits
*171671*

2017 Schedule M1B, Business and Investment Credits
Complete this schedule to determine line 26 of Form M1. Include this schedule when filing your return.
Your First Name and Initial		

Last Name			

Your Social Security Number

	1	 Angel Investment Tax Credit (enclose DEED certificate)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

1	 	

	 2	 Credit for historic structure rehabilitation (enclose certificate)
	 	 Enter National Park Service (NPS) project number .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	  .  .  .  .  .  .

2	 	

	3	 Greater Minnesota Internship Credit (enclose certificate from qualifying institution) . .  .  .  .  .  .  .  .  .  .

3	 	

	4	 Enterprise Zone Credit (enclose DEED certificate) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

4	 	

	 5	 Add lines 1 through 4. Enter total here and on line 26 of Form M1.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

5		

	

You must include this schedule with your Form M1.

9995

2017 Schedule M1B Instructions
Should I file Schedule M1B?

Complete Schedule M1B, Business and
Investment Credits, if you qualify for any
of the following credits as a sole proprietor
or if you received a credit as a partner of a
partnership, shareholder of an S corporation, or beneficiary of a trust as reported
on the Schedule KPI, KS, or KF that you
received:
•	 Angel Investment Tax Credit (enclose
DEED certificate);
•	 Credit for historic structure rehabilitation (enclose SHPO certificate);
•	 Greater Minnesota Internship Credit
(enclose credit certificate from the qualifying institution); or
•	 Enterprise Zone Credit (enclose DEED
certificate).

Is there a penalty for fraudulently
claiming a refund?
Yes. If you file a return that fraudulently
claims a credit, you will be assessed
a penalty equal to 50 percent of the
fraudulently claimed credit.

Line 1

Angel Investment Tax Credit

If you made an investment in certain small
Minnesota businesses, you may be eligible
for a refundable income tax credit.
The credit is equal to 25 percent of any
new investment in a qualified business. The
maximum credit is $125,000, or $250,000
for a married couple filing jointly.
The Department of Employment and
Economic Development (DEED) certifies
investors, investment funds, and businesses
as being eligible to participate in the credit
program. DEED also allocates credits to
eligible taxpayers who make qualifying
investments subject to a statutory maximum
annual appropriation.

If you made a qualified investment in a
Minnesota small business in 2017, enter the
amount listed on the Angel Investment Tax
Credit Certificate issued to you by DEED,
and enclose a copy of the certificate.

If a credit has been assigned to you, enter
the amount from your Assignment of Credit
certificate, and enclose a copy of the certificate.

For more information, visit the DEED website at www.positivelyminnesota.com

Greater Minnesota Internship Credit

Line 2

Credit for Historic Structure
Rehabilitation

If you made qualified improvements to a historic property in Minnesota, and those improvements qualify for the federal Historic
Rehabilitation Credit under IRC section 47,
you may be eligible for a Minnesota credit.
The Minnesota credit is equal to 100 percent
of the federal credit, provided that you filed
an application with the State Historic Preservation Office (SHPO) of the Minnesota Historic Society and meet all other conditions
of eligibility. The credit is generally allowed
when the project is completed.
Enter the amount of the credit and National
Park Service number listed on the credit
certificate issued by SHPO upon completion
of the project.
Note: The Department of Revenue reserves
the right to audit any amount claimed.
Enclose a copy of the credit certificate when
you file your Minnesota return.

Line 3

If you own or operate a business that hired
a qualified student for an internship in
greater Minnesota, you may be eligible for a
refundable income tax credit.
The credit is equal to 40 percent of the wages
paid to the student or $2,000, whichever is
less. Other statutory limitations may apply.
The Office of Higher Education (OHE) and
eligible institutions certify eligible employers
and determine the total credit each eligible
employer may receive.
If you were certified to be eligible for the
Greater Minnesota Internship Credit, enter
the amount of credit you were certified for,
and enclose a copy of the certificate.
Include the total of amounts reported to you
on:
•	 Schedule KS, line 12;
•	 Schedule KPI, line 12; and
•	 Schedule KF, line 20.
For more information, visit the OHE website: www.ohe.state.mn.us.

If you are eligible for the federal Historic
Rehabilitation Credit through an interest in
a partnership, S corporation, estate or trust,
enter the amount of the credit from your
Schedule KPI, KS, or KF.

Line 4

If you receive a grant in lieu of the credit
for the entire amount, you are not eligible
for the tax credit. However, if you received
a grant for a portion of the claimed amount,
you may be eligible for a partial credit.

If you qualify, you would have received
paperwork from DEED. Include a copy of
the documentation with Form M1.

Assignment of credit. If you are eligible
for this credit but have assigned it to another
taxpayer, you may not claim the portion of
the credit that you assigned.

Enterprise Zone Credit

The Enterprise Zone Credit is a refundable
credit for sole proprietors, partners of a partnership, or shareholders of an S corporation.

Include the total of amounts reported to you
on:
•	 Schedule KS, line 15; and
•	 Schedule KPI, line 15.