SEED Capital Investment Credit Program

The SEED Capital Investment Program provides tax incentives for investing in innovative business located in the Minnesota border cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, and Ortonville.

Investors may receive a 45 percent tax credit on their investment, up to $112,500 per year. The credit is non-refundable and may be carried forward up to four years.

Eligibility

To be eligible, a company must:

  • Add value to a product, process or service
  • Increase revenue to a Minnesota business through sales to customers outside Minnesota or through sales to new customers who previously could not purchase the product or service from a Minnesota business
  • Have its principal office and a majority of its business activity, or a significant operation, in a border city
  • Have Minnesota residents as a majority of its employees at its principal office
  • Rely on innovation, research, or the development of new products and processes for its growth and profitability
  • Use the investment for plant, equipment, research and development, marketing and sales activity, or working capital

Application Process

How to Apply
Businesses seeking certification as a qualifying business should complete the SEED Certification Application.

How the Program Works
Each border city determines the amount it has available for enterprise zone tax reductions and confirms that amount with Department of Employment and Economic Development. Then each city allocates a portion of that amount to the SEED Capital Investment Credit and annually notifies DEED of the allocated amount.

When a business applies to DEED for certification as a qualified business, here is the process that follows:

  • DEED provides a certification letter to qualifying businesses
  • Investor invests in the certified qualifying business
  • The business reports to DEED and to Minnesota Department of Revenue that a qualifying investment has been made and provides the investor with the required investment verification form
  • DEED reports to the border city that a qualifying investment has been made
  • Each border city tracks aggregate qualifying investments and its SEED credit allocation remaining
  • Minnesota Department of Revenue provides tax credit to investor

Contact Us

SEED Capital Investment Credit Program Questions? Contact Jeff Nelson at 651.259.7523.

Tax Credits Questions? Contact the Minnesota Department of Revenue at 800.652.9094.

Local SEED Contacts

Dilworth Stan Thurlow 218-287-2313 dilworthcityhall@corpcomm.net
Breckenridge Stan Thurlow 218-643-2733 sthurlow@breckenridgemn.net
East Grand
Forks EDHA
Jim Richter 218-773-2371 jrichter@ci.east-grand-forks.mn.us
City of Moorhead Amy Thorpe 218-299-5442 amy.thorpe@cityofmoorhead.com
Ortonville EDA Vicki Oakes 320-839-2612 eda@ortonville.net