Federal Tax Credits • Work Opportunity Federal Tax Credit: Federal tax credit available to all private sector businesses as an incentive to employers to hire workers in certain groups who consistently experience high rates of unemployment. In Minnesota, the Department of Employment and Economic Development (DEED), (Work Opportunity Tax Credit (WOTC) Unit) certifies members of targeted groups. For more information, see Work Opportunity Tax Credit (WOTC) from DEED, and IRS-Work Opportunity Tax Credit . • Small Business Health Care Tax Credit: Receive a tax credit of up to 50 percent of annual premiums paid toward health insurance for employees. Tax credit benefits employers that: - Have fewer than 25 full-time equivalent employees - Pay average wages of less than $50,000 a year per full-time equivalent - Offer a qualified health plan to its employees through a Small Business Health Options Program Marketplace (or qualify for a limited exception to this requirement) - Pay at least 50 percent of the cost of employee-only – not family or dependent – health care coverage for each employee. The maximum credit is up to 50 percent of premiums paid for small business employers and up to 35 percent of premiums paid for small tax-exempt employers. The credit is available to eligible employers for two consecutive taxable years. For more detailed information regarding the credit, visit the IRS at Small Business Health Care Tax Credit and the SHOP Marketplace . For information about qualified health plans offered through the SHOP Marketplace, visit HealthCare.gov. TAXATION OF NON-MINNESOTA BUSINESSES DOING BUSINESS IN MINNESOTA Non-Minnesota businesses that do business or own property in Minnesota may be subject to state taxes if they have sufficient nexus. Generally, businesses that meet all of these activities that have nexus: • Having a place of business in Minnesota • Having employees or independent contractors conducting business in Minnesota • Owning or leasing real property or tangible personal property in Minnesota - Obtaining or soliciting business within Minnesota such as - Selling products or services to customers in Minnesota who receive the product or service in Minnesota
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