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Home > Paying for College > Education Tax Benefits > Greater Minnesota Internship Tax Credit Program

 

Greater Minnesota Internship Tax Credit Program


 

The Greater Minnesota Internship Tax Credit Program provides a tax credit to eligible employers who employ eligible student interns at locations in greater Minnesota (Counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright). Eligible employers can apply for a tax credit of up to $2,000 per student intern who completes an eligible internship experience.

Who is Eligible?

To be eligible,
Employers must:

  • Enter into an agreement with a participating college to employ an eligible student intern; and
  • Certify in the agreement, the student intern:
    • Would not have been hired without the tax credit; and
    • Did not previously work for the employer in a same or similar job; and
    • Does not replace a current employee; and
    • Has not previously participated in the program; and
    • Will be employed at a location in greater Minnesota; and
    • Will be paid at least minimum wage; and
    • Will work for a minimum of 16 hours per week for at least 8 weeks (Tax Year 2014 internships that began before 5/20/2014 must have been for a minimum of 12 weeks); and
    • Will be supervised and evaluated.
  • Agree to provide the college and/or the Office with follow-up data on any participating student interns later employed full-time by the employer; and
  • Be a taxpayer under Minnesota Statutes Section 290.01.

Students must:

  • Be attending a participating Minnesota college and university; and
  • Have completed 50% of the credits necessary to complete his or her program; and
  • Submit all of the necessary forms and complete any college requirements in order to receive academic credit for successfully completing the internship; and
  • Not be employed as an intern in order to complete requirements as part of his or her academic program's curriculum.
    • For example, a student enrolled in a nursing program completing clinical hours or a student enrolled in an auto body repair program completing required internship credits.
    • Exception is if student will be receiving academic credit to fulfill a general or liberal arts component required of all students.

What Schools Are Eligible?

To participate, postsecondary institutions must be a public college or university or non-profit, baccalaureate or graduate degree granting college or university located in Minnesota. See the list of currently participating colleges and universities.

How much is the tax credit?

Eligible employers can apply for a tax credit of up to $2,000 per student intern who completes an eligible internship experience. The amount of the tax credit is 40% of the compensation paid to each eligible student intern during an internship experience; not to exceed $2,000 per student intern or the maximum amount certified by the college.

What Is the Application Process?

An employer enters into a signed agreement with a participating Minnesota college to employ each eligible student. The college will certify on the agreement the maximum tax credit amount for which the employer can apply based on employing the student in the specified internship experience. Then, when filing its annual Minnesota tax return, the employer applies for the tax credit for each eligible student intern it employed during the tax year. Employers will want to retain documentation from the college showing the student successfully completed the internship experience and was awarded academic credit.

Who should you contact for more information?

Interested students and employers should contact the participating college or university.

Colleges or universities interested in becoming a participating institution should contact the Office of Higher Education.

 

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