New Minnesota Opportunity Zones a Plus

The Job Opportunity Building Zones approved by the Minnesota Legislature this year were pushed by Gov. Tim Pawlenty as a way to spur economic development outside the state's largest metropolitan area.

Businesses that start or expand in a zone would be free from corporate income tax and property tax on any improvements, as well as numerous smaller tax breaks, for up to 12 years. They still would pay personal income taxes and property taxes on the land.

The law allows the state Department of Employment and Economic Development to designate up to 10 primary zones across the state. Each of those 5,000-acre zones could be split into 20 noncontiguous tax-free pockets. Designations take effect Jan. 1.

Louis Jambois, a Department of Trade and Economic Development finance official, expects between nine and 14 applications by the Oct. 15 deadline, most from multiple communities like the one that south-central counties are putting together.

So far, so good, say Minnesota community officials.

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