JOBZ subtraction

Individuals who invest in or operate a qualified business in a Job Opportunity Building Zone (JOBZ) may be able to subtract certain types of income, to the extent that the income would otherwise be taxable.

Complete Schedule JOBZ, JOBZ Tax Benefits, if in 2008 you received:

income from operating a qualified business in a zone,
income for renting real or tangible personal property used by a qualified business located in a zone,
gains from the sale or exchange of real or tangible personal property used by a qualified business located in a zone, or
gains from the sale of an ownership interest in a qualified business.

If you received JOBZ income as a partner of a partnership, shareholder of an S corporation or beneficiary of an estate or trust, these amounts are shown on the Schedule KPI, KS or KF you received from the entity. There is no need for you to complete Schedule JOBZ. Follow this link for additional JOBZ information.

(New) JOBZ documentation
Beginning in 2008, each qualified JOBZ business must now annually file two additional forms with the Department of Revenue. These forms are filed separate from the JOBZ business’s tax return.

1. By October 15, 2009, each qualified business must file Minnesota Schedule M500 (JOBZ Tax Benefit Report), Reporting of JOBZ Tax Benefits, to report the amount of taxes the business would have paid in 2008 had it not been in a JOBZ zone. M.S. 289A.12, subd. 15

2. By December 1, 2009, each qualified business must certify to the Department of Revenue that it is in compliance with the terms of its business subsidy agreement. M.S. 469.3193

If you are a qualified business, failure to submit Schedule M500 will result in removal from the JOBZ program. You will also be subject to repayment of prior JOBZ tax benefits received.

JOBZ program limitations
State benefits only. Because this is a state tax law, no federal benefits accrue from a JOBZ Zone designation.

No wage exclusion. Employees working in a JOBZ zone, or working for a qualifying business in a Zone, are not allowed an exemption from income tax for their wages. No JOBZ zone tax benefits accrue to employees.

No dividend exclusion. There is no provision for an income exemption for dividends received from a JOBZ Zone business.

M.S. 469.319

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