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Incentive Information

Please see our Business Subsidy Policy for specifics on projects that may qualify for the City of Cottage Grove incentives listed below.

Additionally projects must meet certain minimum wage requirements as located in section E of the Business Subsidy Policy.  The current minimum wage for the State of Minnesota is located here.
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Tax Abatement - For projects meeting certain criteria the City of Cottage Grove will consider property tax abatement.  To be considered the business must complete an application with all information requested, which can be found at the bottom of the page.  The application also must be accompanied by a $10,000 application fee that the City uses to do due diligence on the project. 

 CGMotto-color  Tax Increment Financing - For projects in our Business Park, the City of Cottage Grove has worked out a purchase option with the landowners to offer discounted land prices via tax increment financing.  To determine if a project is eligible applicants must complete the City's Business Assistance Application.  That can be found at the bottom of the page.

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Minnesota Investment Fund - Is a loan program through the Minnesota Department of Employment and Economic Development to provide loans to assist expanding businesses.  Must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. MORE INFORMATION

MN DEED Logo Job Creation Fund - The program is available to businesses engaged in manufacturing, warehousing, distribution, technology-related industries, and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business.  MORE INFORMATION

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Minnesota Job Skills Partnership - Program focuses on providing training for both new and existing employees of participating businesses.  Businesses must partner with an accredited Minnesota educational institution.  Grants up to $400,000 are awarded to educational institution to develop and deliver training specific to the business needs. MORE INFORMATION

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Minnesota Data Center Sales Tax Incentive - For companies that build data or network operation centers of at least 25,000 square feet and invest $30 million in the first four years qualify for tax breaks.  Qualifying projects receive slaes tax exemptions for 20 years on computers and servers, cooling and energy equipment, energy use and software. MORE INFORMATION 

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Minnesota Capital Equipment Sales Tax Exemption - If a business buys or leases qualifying capital equipment for use in Minnesota, businesses are eligible for an exemption or a refund of state and local sales or use tax paid.  The purchaser must use the machinery primarily for manufacturing, fabricating, mining, or refining tangible personal property. MORE INFORMATION

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Business Incentive and Sustainability Rider - Commercial and Industrial customers either new or existing customers with new or additional load of 350kW or greater are eligible to receive a 40% electric demand rate reduction for 3 years.  To determine eligibility contact Ryan Bruers, 612-803-7289 Xcel Energy. MORE INFORMATION

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Property Assessed Clean Energy (PACE) Financing - Helps businesses, nonprofit, multi-family housing and more in making their building energy efficient or add renewable energy.  Provides low-cost long term financing.  As a result their is less a reliance on credit and the assessment stays with the property instead of the owner. MORE INFORMATION