Agenda - Economic Development Authority - 06/09/2011

Home

Why Minnesota? "As the firm continues to look for new opportunities to expand, Minnesota is a perfect fit for our model and future expansion plans," — Donan Engineering Co. Inc. Minnesota offers the best mix of human resources, infrastructure, technology and security —critical variables for business productivity and success — ranking among the top five states in the U.S. for long-term competitiveness. • Minnesota ranked among the top 5 in the overall 2010 Beacon Hill State Competitive Index, which measures long-term competitiveness in an area. Illinois is among the least competitive states in the U.S ranking 34th on the Index, while Indiana was 37th, Ohio 43rd, Michigan 33rd and Wisconsin 23rd. • The Twin Cities metro has been among the top five "Best U.S. Cities for Business," according to MarketWatch, since rankings began. Chicago ranks a distant 26th. • Forbes lists Minnesota among the top 15 Best States for Business and Careers 2010, while Illinois placed 37th, Indiana 29th, Ohio 38th, Wisconsin 43rd and Michigan 47th. • Minnesota's business taxes rank among the 16 lowest in the nation, compared to Illinois' and Wisconsin's 17th, Indiana 10th, Michigan 31 st and Ohio's 34th place ranking, according to a report by Ernst & Young and the Council on State Taxation, 2009. • Minnesota is among the top five states nationwide in the 2010 Camelot Index, according to State Policy Reports, based on our economy, health, education, crime, society and government. • Supportive state and local partners will assist your company in securing the financial and workforce development resources for the project to be a success. • Minneapolis -St. Paul is one of the most logistics friendly areas nationwide, according to Expansion Management, receiving five stars and ranking high in crucial indicators such as road conditions, trucking and warehousing. • Minnesota's favorable income apportionment factors and the absence of a throwback provision reduce effective tax liabilities, benefiting companies with significant sales outside the state. This makes the corporate income tax system in the state very competitive with others across the country. • Minnesota exempts personal property like inventory and machinery from the property tax, resulting in a lower effective tax rate for businesses. As a result, businesses whose equipment and inventory values are high relative to the real estate value pay a lower effective tax than in states that impose such taxes. • Minnesota's electric and natural gas services are dependable and moderately priced, providing a competitive edge to businesses. • The Twin Cities' quality of life is enviable, as evidenced by a wide range of impartial rankings such as CQ Press' ranking of Minnesota among the top four most "Livable States," for more than a decade. Minnesota off rs a strong workforce, state and local support, and great communities that will help your firm achieve its goals for extraordinary growth and profitability. 3