This program provides sales and use tax refunds to qualifying businesses in Greater Minnesota. To qualify, a business must be certified by the Minnesota Department of Employment and Economic Development (DEED).
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.
How do I request a refund?
File usingForm ST11, Sales and Use Tax Refund Request and Multiple Period Amended Return. Your business can file only two refund requests per year. Each request must be for a refund of at least $500.
You can only request refunds for purchases used at the "qualifying facility" identified in your business subsidy agreement (BSA).
What purchases qualify?
Eligible purchases include:
- Taxable property and taxable services primarily (more than 50 percent) used or consumed at the qualifying facility
- Construction materials and supplies primarily used or consumed in the construction of real property at the qualifying facility
- Equipment incorporated into real property at the qualifying facility
Note: For this program, it does not matter whether construction materials and supplies are purchased by the certified business or a contractor.
Are there any limits to my refund?
Yes. State law allows a certified business to request up to $2 million in refunds per year, but no more than $10 million during the 7-year agreement period. Total refunds to your business are limited to the amount listed in your BSA for the agreement period.
In addition, the department can only refund up to $7 million in all during each fiscal year (july 1 - June 30). Refund requests are processed on a first-come, first-served basis.
- If we reach the $7 million limit for the year, we will process your refund in the next fiscal year.
- If we do not reach the $7 million limit for the year, any remaining funds will be added to the limit for the next fiscal year.