Duckworth Approves Nearly $1 Billion in Tax Cuts for Minnesotans

ST. PAUL, MN –  The Minnesota Senate approved a bipartisan $944 million tax bill aimed at jumpstarting the economy and helping families, workers, and small business owners recover from the COVID-19 shutdowns. Duckworth opposed all of the significant tax hikes that were proposed to raise taxes by over $1 billion. The bill passed with bipartisan support and has been signed into law.

The bill provides tax relief for Minnesotans and encourages economic growth by including full conformity to federal tax rules for the forgivable Paycheck Protection Program loans many businesses used to keep folks employed during the COVID-19 closures.

“I campaigned on no tax increases for our families and small businesses and I’m happy to be delivering on that promise while still investing in important areas like our schools and infrastructure,” said Senator Zach Duckworth (R-Lakeville).  “The tax relief in this bill will help jump start our local economy, put people back to work, and give our small businesses the chance to succeed after a rollercoaster of uncertainty.”

The bill also replenishes $491 million that was borrowed from the state budget reserve two years ago. 

  Other highlights of the bill: 

  • Establishes the Frontline Worker Grant program working group to make recommendations on the disbursement of $250 million as a direct cash benefit to frontline workers. COVID relief funds from the federal government can be used to benefit those workers who were put at risk and worked unpaid overtime during the pandemic. The working group will be tasked with defining eligible workers and the matching benefit, which the full legislature will then adopt. 
  • 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.  
  • Preserves 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. 
  • Emphasizes affordable housing and workforce housing with a new tax credit to bring private money into the marketplace.  
  • Provides annual aid payments to counties to address student homelessness.