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Minnesota Workforce Training Tax Credits: What Employers Can Claim

Minnesota has no general state tax credit for hiring or training workers. The federal Work Opportunity Tax Credit (WOTC) applied to hires who began work on or before December 31, 2025, and the IRS has not shown an extension for later hires. DEED is still collecting and holding applications for 2026 start dates in case Congress reauthorizes it. The one state hiring credit found is the Border-Cities Enterprise Zone credit, up to $3,000 per added worker, for businesses in five border cities and Taylors Falls.

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  • State pre-filled: MN
  • Program type pre-filled: tax_credit
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HOW IT WORKS

Four steps, in this order.

  1. 1

    Check whether the hire started on or before December 31, 2025

  2. 2

    If so, file Form 8850 and ETA 9061 with DEED within 28 days of the start date

  3. 3

    For the Enterprise Zone credit, contact your city's zone administrator

  4. 4

    Claim certified credits on your Minnesota return

2 VERIFIED PROGRAMS

Where the Minnesota money comes from.

Run by Minnesota DEED (WOTC certification, Enterprise Zone approval) and Minnesota Department of Revenue (claiming credits). Every figure is from an official page, linked on each card.

Work Opportunity Tax Credit (federal), certified by DEED

Federal credit; ended for starts after 12/31/2025
CLOSED FOR 2026 HIRES
WHAT YOU GET

A federal credit for wages paid to certified members of targeted groups. As of September 2026 it is available only for hires who began work on or before December 31, 2025.

HOW MUCH

Credit amounts are set by federal law and depend on the target group; see the IRS page. No credit is available for people who start work after December 31, 2025 unless Congress reauthorizes it.

WHO RECEIVES THE MONEY

The employer, as a reduction of federal income tax (general business credit).

WHO QUALIFIES
  • Hire must have begun work on or before December 31, 2025
  • Hire must be certified by DEED as a member of a targeted group
  • Form 8850 or ETA 9061 filed within 28 days of the start date
Before you start: Yes. Certification must be requested within 28 days of the start date.
HOW TO APPLY
  1. 1Submit IRS Form 8850 and ETA Form 9061 to DEED
  2. 2DEED certifies the hire
  3. 3Claim the credit on your federal return

Deadlines and windows: DEED says applications with start dates on or after 01/01/2026 will be accepted and held until reauthorization. It is not a promise that the credit will be restored. Follow the IRS page.

SOURCE: IRS.GOV

Border-Cities Enterprise Zone income tax credit

Up to $3,000 per added worker, five border cities
THROUGH YOUR CITY'S ZONE ADMINISTRATOR
WHAT YOU GET

An income tax credit for additional workers employed in the zone, other than construction workers, plus property tax and debt financing credits.

HOW MUCH

Up to $3,000 per added employee per year under subdivision 1, or $1,500 per employee under the additional border city provision. Credits may be refundable. Tax reductions last only until the zone's allocations are used up.

WHO RECEIVES THE MONEY

The employer, as a refundable Minnesota income tax credit.

WHO QUALIFIES
  • Business located in the designated zone: Breckenridge, Dilworth, East Grand Forks, Moorhead, Ortonville, or the Taylors Falls development zone
  • Source of new investment and job creation
  • Not a recreation or entertainment facility, financial institution, public utility, or other excluded use
Before you start: Yes. DEED written certification is required to claim the credit.
HOW TO APPLY
  1. 1Contact the city's enterprise zone administrator
  2. 2Receive written certification from DEED
  3. 3Attach the certification to your Minnesota return

Deadlines and windows: No fixed window. Credits depend on local allocations remaining.

SOURCE: REVISOR.MN.GOV
AVOID THESE

What gets Minnesota Tax Credit claims denied.

STRAIGHT ANSWERS

Minnesota Tax Credit questions.

Is WOTC available for people I hire in 2026?

No, not under current law. The IRS page says it applies to individuals who begin work on or before December 31, 2025. DEED will hold 2026 applications until reauthorization, but no extension is confirmed.

SOURCE: IRS.GOV
Does Minnesota have its own hiring or apprenticeship credit?

None was found. The Minnesota Revenue other nonrefundable credits schedule for 2025 lists no hiring or training credit. The Enterprise Zone credit is the closest, and it covers only certain border cities.

SOURCE: REVENUE.STATE.MN.US
Should I still file WOTC paperwork for 2026 hires?

DEED asks employers to keep submitting timely applications during the hiatus, and holds those with 2026 start dates. Filing keeps the option open if Congress backdates a reauthorization.

SOURCE: MN.GOV
Where do I claim the Enterprise Zone credit?

On your Minnesota return, with DEED's certification attached. The form depends on your entity type.

SOURCE: REVENUE.STATE.MN.US

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on . Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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