Senator Kiffmeyer, Senate Approves Nearly a Billion in Tax Cuts for Minnesotans

Today, Senator Mary Kiffmeyer (R-Big Lake) and the Minnesota Senate approved a bipartisan $944 million tax bill aimed at jumpstarting the economy and helping workers and small business owners recover from COVID-19. The bill does not include any of the significant tax hikes proposed by Governor Walz or Democrats and supported by the House of Representatives, both of whom proposed raising taxes by over $1 billion, including the creation of a fifth-tier income tax.

“This tax bill is for Minnesotans,” Kiffmeyer said. “We have prioritized your needs by fending off attempts to raise taxes, create a new income tax tier, and tax your emergency assistance like PPP loans and unemployment benefits. Minnesota, you have tightened your budgets enough over this last year and now it’s time to get a break from government.”

The bill empowers Minnesotans and encourages economic growth with two top priorities for workers championed by Senate Republicans all year: full conformity to federal tax rules for the forgivable Paycheck Protection Program loans many businesses used to survive the COVID-19 pandemic, including deductions for expenses, and full conformity for federal pandemic unemployment benefits up to $10,200.

Job creators and business owners will see lower property taxes as a result of this bill. The bill also replenishes $491 million that was borrowed from the state budget reserve two years ago and provides relief to Minnesota contractors for their June accelerated sales tax payments.

  Other highlights of the bill:

  • Financial support for the Oriented Strand Board (OSB) project in Northern Minnesota. The OSB was recently approved to receive $15 million in funding from the Iron Range Resources And RehabilitationBoard and this crucial project will bring hundreds of direct and indirect jobs to the community.
  • The bill extends the Angel Tax Credit by $5 million, which encourages investments in startup companies focused on high technology, new proprietary technology, and other groundbreaking fields. 
  • The bill extends the Historic Structure Rehabilitation Credit, the hugely successful job-creating tax credit that helps rehabilitate historic buildings. A study found that every $1 spent on the tax credit generates $9.50 in private sector economic activity.
  • The bill emphasizes affordable housing and workforce housing with a new tax credit to bring private money into the marketplace.