Job Opportunity Building Zone (JOBZ)

The Job Opportunity Building Zone (JOBZ) program provides a qualified business with a variety of tax incentives through the year 2015. A qualified business is one that is located in a Job Zone and has entered into a Business Subsidy Agreement (BSA) with a local government. 

Potential benefits include:

• Invidual or corporate income tax exemption. The income tax exemption is based on the Zone Percentage, which is a calculation of the percentage of the company's business that is performed in a Zone.
• Sales and use tax exemption on goods and taxable services and construction materials and supplies. Goods and taxable services must be purchased by the qualified business and primarily used or consumed in the Zone. Examples of goods and taxable services that would qualify include office equipment and software, office supplies and utilities. Construction material and supplies must be used to construct or improve real property in the Zone, and must be used or consumed by the qualified business upon completion of the project. Therefore, drywall, cement, etc. that is used to construct a facility would be exempt, while a bulldozer owned by a contractor but used in a Zone would not be exempt.
• Property tax exemption of 100 percent for construction or improvement of real and/or personal property located within the zone and classified as Class 3 property. Land and any property not classified as Class 3 property is subject to property tax.
• A jobs credit that is available to qualified businesses paying an average wage of at least $30,000 per year. 

There are JOB Zones located in Barnesville, Glyndon, Hawley and Moorhead, Minn.