Sen. Hoffman has worked tirelessly to pave the way for local businesses to thrive and expand, and to expand opportunities for businesses across the state. According to the Minnesota Secretary of State’s office, 800 new businesses have opened up shop in Brooklyn Park, Champlin and Coon Rapids in the last year. During the past three years, Sen. Hoffman has:
- Supported investments in economic development programs administered by DEED. This support has led to no less than 10 companies in our district receiving DEED funding to help jump-start a business, train workers or expand its location – all in the last 2 years.
- Supported legislative efforts to invest $25 million into the Job Creation Fund, and Sen. Hoffman voted to put $30 million into the Minnesota Investment Fund. Both of these funds are vitally important to job creation and business expansion across the state.
As a result of his work in the Minnesota Senate, the following business have made substantial expansions in our district:
- Wurth Adams Nut & Bolt, an industry-fabricated metal products manufacturing company, is moving its headquarters to Brooklyn Park. The multi-million dollar expansion will create 20 jobs and is receiving $590,000 through the Minnesota Job Creation Fund.
- Perbix Machine Co. also plans to move its headquarters and operations from Golden Valley to a new manufacturing facility in Brooklyn Park. The move is aided by a disbursement of $139,000 from the Minnesota Job Creation Fund which has helped the company add 12 new jobs.
- Olympus Surgical Technologies of America recently built a new 180,000 square foot manufacturing facility along the Highway 610 corridor that will employ 380 workers. The state granted a $1 million forgivable loan from the Minnesota Investment Fund in 2013 for the Olympus project.
- Takeda Pharmaceutical Co., located in Brooklyn Park, was recently purchased by a Japanese company and is on its way to receiving $2 million from DEED. Takeda recently purchased Baxter Pharmaceutical and has plans for expansion at the Brooklyn Park site, which helped qualify it for MIF grant money. The company plans on adding another 190 jobs with salaries between $99,000 and $225,000 per year. This expansion is due in part to Sen. Hoffman’s ongoing support and commitment to the Minnesota Investment Fund (MIF).
Sen. Hoffman Unveils Next Generation Main Street Act to Help Small Businesses Thrive
Legislators unveiled a package of bills designed to eliminate bureaucratic red tape and simplify practices for Minnesota small business owners. Sen. John Hoffman (DFL-Champlin), a Senate author of the Next Generation Main Street Act says these initiatives will reduce costly audits, simplify tax filing for businesses, and make it easier for owners to transfer their businesses to a next generation owner.
“I hear from a lot of small business owners in my district about red tape and how fixing some of the bureaucratic headaches at the state level would free up a lot of time for them to focus on their actual business. We are trying to build an economy that works for everyone – and small business owners are the backbone of Minnesota’s economy; this package of bills is an acknowledgment of their hard work and contributions to our state,” said Sen. Hoffman.
The Next Generation Main Street Act includes the following:
Supporting Small Business Start-Ups & Entrepreneurs
- Make sure that every person that starts a small business in Minnesota is contacted and provided information about the resources available to them to navigate sometimes complicated regulatory requirements as well as potential development loans, grants, and technical expertise.
- Assist business start-ups with gap financing through the Minnesota Initiative Foundations. These loans can help leverage additional investments in new businesses.
Helping With Succession Planning
- Provide grants to Small Business Development Centers to provide transaction services to business owners and next generation, non-family proprietors to help them take over a business.
- Assist with succession planning, helping match rural business owners looking to exit their business with business managers looking to buy and run their own business. This concept has proved successful in Nebraska.
- Provide additional funding to Minnesota Initiative Foundations who help provide gap financing to maintain existing businesses as they transition to new ownership.
- Change statutes so the Department of Revenue “may” rather than “must” assign penalties.
- Waive penalties for minor or inadvertent compliance issues (less than $50).
- Not penalize businesses for actions taken in reliance on a previous audit.
- Authorize the Department of Revenue to issue private letter rulings to allow small businesses to get advice in advance of an audit rather than after the fact.
Simplifying Tax Filing for Small Businesses
- Enact federal tax conformity so that Minnesota businesses can file taxes without delay and uncertainty in 2016.
- Make tax conformity automatic so that the annual uncertainty over what rules apply for state taxpayers is eliminated.
- Fully conform on section 179 expensing, easing tax filing burdens and providing tax relief to small businesses and farmers on their capital purchases.
- Simplify sales tax compliance and lower costs by providing a refund for costs that a small business might incur by using a third party vendor or automated system to collect and remit the tax on their behalf.
Business, Labor and the Economy
Unemployment Insurance Tax Cuts
- Over four years, Senator Hoffman supported cutting unemployment insurance taxes by over half a billion dollars. (SF 1607 - 2013, 4/19/13; SF 2891 - 2016, 3/24/16)
Job Creating Tax Incentives
- Supported tens of millions of dollars for the Job Creation Fund and the Minnesota Investment Fund. See below for District Impact.