Fillable Schedule Jobz - Jobz Tax Benefits

2014 Schedule JOBZ Instructions

Job Opportunity Building Zone (JOBZ) Exemptions, Exclusions, Subtractions and Credits

Who is eligible

Annual Reporting of All JOBZ Tax Beneﬁ ts

Qualiﬁ ed Businesses

Each qualifi ed JOBZ business is required to annually fi le two forms with the Department

Tax benefi ts, such as exemptions from

of Revenue. Th ese forms are fi led separately from the qualifi ed business’s tax return.

income and minimum fee adjustments, are

By October 15, 2015, each qualifi ed business must fi le Form M500, JOBZ Tax Benefi ts

available to qualifi ed businesses operating

Report, to report the amount of taxes the business would have paid in 2011 had it not

in a designated Job Opportunity Building

been in a JOBZ zone AND each qualifi ed business must fi le Form JOBZ1 to certify with

Zone (JOBZ).

the Department of Revenue that it is in compliance with the terms of its business subsidy

You are a qualifi ed business if your place of

agreement.

business is located within a zone and you

Failure to submit either of these reports will result in the business being removed from the

have signed a Business Subsidy Agreement

JOBZ program.

with the JOBZ zone administrator.

Agricultural processing facilities located in

Column instructions

Line 4—Capitalized Rents

a designated agricultural processing facility

Rented property is based on the actual rent

Column A, Lines 1–6. Enter the zone

zone are eligible for the same tax benefi ts as

for property used during the tax year. Do

property and payroll items for the qualifi ed

a qualifi ed business located in a JOBZ zone.

not average rents paid during the year. De-

business located in the zone.

termine the value of rented property used in

Individuals

Column B, Lines 1–6. Enter the business’s

the zone and in Minnesota by multiplying

Individuals who invest in or operate a quali-

total property and payroll items in Min-

the rent paid during the tax year by eight.

fi ed business in a JOBZ zone can subtract

nesota. However, if you are a sole proprietor

the following types of income, to the extent

Line 6—Payroll

who is a Minnesota resident, change the

that the income would otherwise be taxable:

In column A, enter the total wages and

column heading for column B from “In

salaries paid to individuals for services per-

Minnesota” to “Worldwide business total”

• the income received for renting real or

formed in the zone. If an individual works

and enter the appropriate amounts on lines

tangible personal property used by a

from an offi ce within the zone and their em-

1–6.

qualifi ed business located in a zone,

ployment requires them to work outside the

• income received from operating a quali-

Unitary businesses: In column B, lines 1–6,

zone, include their full wages and salaries

fi ed business in a zone,

enter the unitary group totals.

only if the outside-zone work is incidental

• gains from the sale or exchange of real

to the work performed by the individual

Column C, Lines 5 and 6. Divide column

or tangible personal property used by a

within the zone.

A by column B, and enter the result in

qualifi ed business located in a zone, or

column C for each line. Be sure to carry the

In column B, enter the total payroll paid or

• gains from the sale of an ownership inter-

result to fi ve decimal places.

incurred in Minnesota, or paid for labor

est in a qualifi ed business.

performed in Minnesota, for the tax year in

Line Instructions

connection with the business.

If you are a sole proprietor operating a

qualifi ed business, complete Sections A, D

Defi nitions for property and payroll on lines

Lines 9–16

and E. Individuals who are not operating a

1 through 6 are generally the same as those

Limit

qualifi ed business should complete Section

terms as defi ned for the three-factor appor-

D only, and skip Sections A, B, C and E.

tionment.

Th e maximum amount you are allowed

to subtract is 20 percent of the sum of the

Line 1—Inventory

If you are a partner of a partnership or share-

qualifi ed business’s zone payroll plus the

holder of an S corporation, you may need

Enter the average value of inventories for

adjusted basis of property at the time the

to contact the entity to obtain the required

the business for the tax year.

property is fi rst used by the business in the

information to complete Schedule JOBZ.

Line 2—Tangible Property and Land

zone.

Enter the average value of total tangible

Completing the Schedule

Line 9—Minnesota Source Income

property (real, personal and mixed) used in

Using the instructions below, enter your

BSA Effective Date

connection with your business during the

Minnesota source income (or your federal

Th e BSA eff ective date is the date the quali-

tax year. Property must be valued at original

income if you are a Minnesota resident sole

fi ed business’s Business Subsidy Agreement

cost and includes land, buildings, machin-

proprietor) from the qualifi ed business that

(BSA) was signed by the zone administrator.

ery, equipment and other tangible personal

operates in the zone. Exclude any rental in-

property.

Beneﬁ t or Operations Start Date

come or capital gains from the sale of prop-

Line 3—Financial Institutions Only

erty used by the qualifi ed business in the

Th e benefi t start date is the later of the

For fi nancial institutions only, you must

zone that may be included in the amount.

approval date or the date the business was

include intangible assets in the property.

You will report this income separately in

staff ed and running its business operations.

Section D.

Continued

Schedule Jobz - Jobz Tax Benefits - 2014 Page 3

Related Articles

Related forms

Related Categories