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Incentives

Steet Signed Named Incentive

New Ulm Economic Development Corporation assists expanding, relocating or new businesses in accessing incentives, securing financing, securing data and information and utilizing services or programs. Our focus is to serve as your advocate during the development process. We can help access any of the following incentives.

Get cash back for creating new jobs in New Ulm!

Cash Incentives for New Jobs Created by New Businesses and Expanding Local Businesses 

Wages of At LeastIncentive
$8.00/hour$300/new job
$12.00/hour$500/new job
$16.00/hour$700/new job

Qualifying new jobs will be counted at the business’s start up or expansion date and on each six-month anniversary of the start up or expansion for a total of three years (36 months). Each anniversary’s evaluation will be measured against the highest level of employment of all the previous anniversaries. Qualifying jobs must be full-time, non-temporary employment. A minimum of 5 new jobs must be created. Each new employee must live within a 10 mile radius of New Ulm.

Rebate on Electric Power Bills

Rebate & Eligible Time Period After Start up or Expansion

  • Fifty Percent (50.0%) - During the first twelve (12) months
  • Thirty-five percent (35.0%) - During months 13-24
  • Twenty percent (20.0%) - During months 25-36

Expanding local businesses must have electric load growth to be eligible. For existing New Ulm businesses the rebates apply to the electric load growth only. For businesses new to New Ulm the rebate percentages apply to the entire electric load.  The incentive payment can not exceed $50,000 per business per year.

Other Incentives

Minnesota Job Creation Fund

This program provides up to $500,000 in job creation awards and up to $500,000 in real property improvement rebates.  Create at least 10 new, full time permenent jobs and make a minimum of $500,000 investment in real property improvements to be eligible.  The new jobs must pay at least $12.61 (a combination of wages and benefits).  The job creation awards are between $1,000 to $3,000 (depends on wages paid) for each eligible new job created.  These payments continue for 7 years.  The capital investment rebate is 7.5% of real property investments. This is a one time payment.  Click here for more information.

Energy One Incentive

New or expanding users of electricity who consume a minimum of one megawatt of power, or more, are eleigible for a fixed low rate for 3 years.  The 2015 rate is $0.072/kWh, plus a $30 meter fee.  This incentive is offered by Heartland Consumer Power District who supply a majority of the the eletricity in New Ulm.  For more information click here

Job Skills Partnership Workforce Training Grants

Grants of up to $400,000 are available to pay for customized training for new employees or to retrain existing employees. For more information contact us, or click to view more information about this opportunity.

Tax Abatement

Tax abatement allows for a portion of the real estate taxes paid to be abated for up to 20 years on new development. The abated taxes can be rebated to the business or used as a revenue stream to pay for infrastructure, site work, or to write down the cost of land acquisition.

Tax Increment Financing

TIF allows the city to “capture” the increased real estate taxes from new development or substantial renovations. The funds can be rebated to the expanding business or used for land purchase write down, site work, utiltity extensions, or renovations of substandard structures.

Revolving Loan Funds

The following entities have revolving loan funds; City of New Ulm, Region Nine, Brown County, Southern Minnesota Initiative Foundation and the Minnesota Investment Fund. Loan amounts range from $25,000 to $500,000 depending on the entity. These funds typically take a subordinate collateral position to a primary lender.

For more information call New Ulm Economic Development Corporation
at (507) 233-4305, or (507) 276-9729 or e-mail: nuedc@newulmtel.net

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