An economic development tool that will replace the JOBZ program got funded by the Legislature this week.
The Job Opportunity Building Zones or JOBZ gives tax incentives to businesses to expand or set up shop in greater Minnesota. The participating companies are meant to increase employment in the area or make capital investments to get the tax breaks. JOBZ expires in 2015. A new program called Minnesota Job Creation Fund will take its place.
Katie Clark Sieben, commissioner of the Minnesota Department of Employment and Economic Development, said the new program operates statewide and is seeded with $24 million. It's also performance-based. Grants to firms will be tied to a minimum level of job creation and investment.
"No money leaves the state until the company creates that number of new jobs and that level of new investment," Clark Sieben said.
The legislature also signed off on giving the Minnesota Investment Fund $30 million for similar economic development purposes.