Closest Tax-Free JOBZ Zone to Minneapolis
Cambridge is the closest tax-free JOBZ development zone to Minneapolis -- just 45 miles straight north of downtown. Businesses that locate or expand in Cambridge's JOBZone save thousands in taxes each year through 2015.

High-Value Tax Exemptions
Minnesota tax exemptions include:

• Property tax on commercial and industrial improvements
• Sales tax on goods and services
• Corporate franchise tax
• Income tax for operators or investors
• Capital gains tax
• Employment tax credit for high-paying jobs
• Wind energy production tax

Property tax exemptions do not apply to:

• Local general obligation bond debt
• School operating levy referendum
• Land (only improvements to land are exempt)
• Vacant buildings (while vacant)

JOBZ Qualified Businesses
Four types of business scenarios qualify for JOBZ benefits:

• Businesses in the zone at the time of its JOBZ designation
• Business expansion in the zone
• Business relocations from other states
• Business relocations from other parts of Minnesota if they increase employment by 20% the first year or make a capital investment equal to 10% of the previous year's gross revenues

Example of Tax Savings:Metal Fabricating Company

• Distribution/warehouse company with all operations in JOBZone
• Construction of a 55,000 sq. ft. building valued at $2,700,000 in 2010
• Annual taxable income of $1,000,000
• A total of 50 employees
• Average wage of $30,000
• Purchase of taxable goods and services totaling $200,000 annually

Average Annual Tax Savings Corporate Income Tax $31,300 6-year average Sales & Use Tax   $13,300 7-year average Property Tax   $113,491 5-year average Total Average Benefit   $160,695 6-year average Total 7-Year Benefit   $964,175

Summary of Estimated Tax Savings CY Corp. Franchise Tax Savings Sales Tax Savings State Property Tax Savings Local property Tax Savings, Excl School District Job Creation Credit Annual Benefit Cumulative Benefits 2009 0 119,925 0 0 0 119,925 119,925 2010 31,300 13,000 0 0 0 44,300 164.225 2011 32,100 13,300 13,150 73,600 0 152,150 316,375 2012 32,900 13,650 33,950 75,450 0 155,950 472,325 2013 33,700 14,000 34,850 77,350 0 159,900 632,225 2014 34,550 14,350 35,700 79,300 0 163,900 796,125 2015 35,400 14,700 36,600 81,350 0 168,050 964,175 Total 199,950 202,925 174,250 387,050 0 964,175   NOTE: Estimates are in nominal dollars and exclude the impact of JOBZ exemptions on other tax liabilities.

Contact the Cambridge Economic Development Department for more details.

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