Tax breaks for investors stumble at state Capitol

A bill designed to spur economic development across Minnesota has hit a roadblock at the state Capitol.

DFL leaders in the House and Senate are planning to vote Monday on the package of tax breaks for investors, but they haven't agreed on how to pay for it.

Senate Tax Chairman Tom Bakk wants to repeal a motor fuel tax credit for low income Minnesotans, while his House counterpart, Rep. Ann Lenczewski, is pushing for early compliance with some scheduled federal tax code changes affecting upper income groups. Lenczewski says she's won't let the disagreement stop the bill.

"There are so many unemployed Minnesotans. They don't want us to play these political games at the capitol based on he said, she said, when they're all sitting on the bench and they don't have jobs," Lenczewski said. "So, in the end I really do believe the House and Senate will come together on something by Monday, because there's too much at stake here."

Gov. Tim Pawlenty's revenue commissioner has raised concerns about both proposed revenue sources.