Greater Minnesota Job Expansion Program

Greater Minnesota Job Expansion Program

Supports businesses in Greater Minnesota with sales tax refunds tied to sustained employment expansion.

The Greater Minnesota Job Expansion Program, jointly administered by the Minnesota Department of Employment and Economic Development (DEED) and the Minnesota Department of Revenue, provides sales tax refunds to traded-sector businesses located outside the seven-county Twin Cities metropolitan area that increase employment and meet wage thresholds. Qualifying businesses receive sales tax refunds on purchases of tangible personal property, taxable services, and construction materials made during a seven-year certification period. The maximum benefit is $2 million per year per business and $10 million over the full certification period, with a statewide program cap of $7 million in refunds available each fiscal year under Minn. Stat. 116J.8738 and 297A.68 subd. 44.

To be eligible, a business must be located in Greater Minnesota (excluding Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties), have been operating for at least one year, and be a traded-sector business — meaning it does not primarily serve local markets. Excluded sectors include retail, public utility, professional services such as attorneys and accountants, hospitality, and gambling. The business must increase employment by at least two full-time employees or 10 percent of existing headcount within three years, and pay wages annualizing to at least $28,580 per year or $18.55 per hour (120 percent of federal poverty guidelines for a family of four, based on 2025 figures).

Applications are accepted on a rolling basis until the $7 million annual cap is exhausted. The three-step process involves submitting an application with a city clerk copy, an application fee of $500 or 3 percent of the award (maximum $10,000, paid only by awarded businesses), and — for awards over $500,000 — a public hearing before executing a Business Subsidy Agreement with DEED. Applying early in the fiscal year is advisable given the hard program cap.