Schedule M1b - Business And Investment Credits

2017 Schedule M1B Instructions

Should I file Schedule M1B?

If you made a qualified investment in a

If a credit has been assigned to you, enter

Minnesota small business in 2017, enter the

Complete Schedule M1B, Business and

the amount from your Assignment of Credit

amount listed on the Angel Investment Tax

Investment Credits, if you qualify for any

certificate, and enclose a copy of the certifi-

Credit Certificate issued to you by DEED,

of the following credits as a sole proprietor

cate.

and enclose a copy of the certificate.

or if you received a credit as a partner of a

Line 3

partnership, shareholder of an S corpora-

For more information, visit the DEED web-

Greater Minnesota Internship Credit

tion, or beneficiary of a trust as reported

site at

If you own or operate a business that hired

on the Schedule KPI, KS, or KF that you

a qualified student for an internship in

Line 2

received:

greater Minnesota, you may be eligible for a

Credit for Historic Structure

• Angel Investment Tax Credit (enclose

refundable income tax credit.

Rehabilitation

DEED certificate);

If you made qualified improvements to a his-

The credit is equal to 40 percent of the wages

toric property in Minnesota, and those im-

• Credit for historic structure rehabilita-

paid to the student or $2,000, whichever is

provements qualify for the federal Historic

tion (enclose SHPO certificate);

less. Other statutory limitations may apply.

Rehabilitation Credit under IRC section 47,

• Greater Minnesota Internship Credit

The Office of Higher Education (OHE) and

you may be eligible for a Minnesota credit.

(enclose credit certificate from the quali-

eligible institutions certify eligible employers

The Minnesota credit is equal to 100 percent

fying institution); or

and determine the total credit each eligible

of the federal credit, provided that you filed

• Enterprise Zone Credit (enclose DEED

employer may receive.

an application with the State Historic Preser-

certificate).

vation Office (SHPO) of the Minnesota His-

If you were certified to be eligible for the

toric Society and meet all other conditions

Is there a penalty for fraudulently

Greater Minnesota Internship Credit, enter

of eligibility. The credit is generally allowed

claiming a refund?

the amount of credit you were certified for,

when the project is completed.

and enclose a copy of the certificate.

Yes. If you file a return that fraudulently

claims a credit, you will be assessed

Enter the amount of the credit and National

Include the total of amounts reported to you

a penalty equal to 50 percent of the

Park Service number listed on the credit

on:

fraudulently claimed credit.

certificate issued by SHPO upon completion

• Schedule KS, line 12;

of the project.

Line 1

• Schedule KPI, line 12; and

Angel Investment Tax Credit

Note: The Department of Revenue reserves

• Schedule KF, line 20.

If you made an investment in certain small

the right to audit any amount claimed.

For more information, visit the OHE web-

Minnesota businesses, you may be eligible

Enclose a copy of the credit certificate when

for a refundable income tax credit.

site:

you file your Minnesota return.

The credit is equal to 25 percent of any

Line 4

If you are eligible for the federal Historic

new investment in a qualified business. The

Enterprise Zone Credit

Rehabilitation Credit through an interest in

maximum credit is $125,000, or $250,000

The Enterprise Zone Credit is a refundable

a partnership, S corporation, estate or trust,

for a married couple filing jointly.

credit for sole proprietors, partners of a part-

enter the amount of the credit from your

nership, or shareholders of an S corporation.

The Department of Employment and

Schedule KPI, KS, or KF.

Economic Development (DEED) certifies

If you qualify, you would have received

If you receive a grant in lieu of the credit

investors, investment funds, and businesses

paperwork from DEED. Include a copy of

for the entire amount, you are not eligible

as being eligible to participate in the credit

the documentation with Form M1.

for the tax credit. However, if you received

program. DEED also allocates credits to

a grant for a portion of the claimed amount,

Include the total of amounts reported to you

eligible taxpayers who make qualifying

you may be eligible for a partial credit.

on:

investments subject to a statutory maximum

annual appropriation.

Assignment of credit. If you are eligible

• Schedule KS, line 15; and

for this credit but have assigned it to another

• Schedule KPI, line 15.

taxpayer, you may not claim the portion of

the credit that you assigned.

Schedule M1b - Business And Investment Credits - 2017 Page 2

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