FAQs about Benefits

A qualified business is entitled to a sales tax refund on purchases made during the seven-year period the business is certified, subject to program limitations. Before requesting a refund under this program, you must pay sales tax when you make qualifying purchases. If the seller does not charge you sales tax, you must report and pay use tax on the property or service that you purchase.

The maximum refund a business may receive is $2 million annually and $10 million over the seven-year certification period. However, DEED's award determination may be lower than these amounts. Up to $7 million per year may be refunded to all certified businesses under the program.

Yes, however the award amount will factor in credits, grants, loans and other financial assistance provided by other state or local government agencies.

All purchases made during the seven-year period are eligible for the sales tax refund, but the sales tax refund amount is limited to the DEED award determination.

Any purchases made before the business is certified will not qualify for the refund. Also, purchases that are eligible for a refund under other programs, such as capital equipment, do not qualify.

Businesses must file a First Claim form or an annual report with DEED. Then they file a tax refund claim form with the Minnesota Department of Revenue.