Senator Goggin, Minnesota Senate Pass Economic Recovery for Small Businesses, Farmers, Schools

The Minnesota Senate approved with bipartisan support a major Republican-led Economic Recovery Act to help small businesses battling financial hardship caused by the coronavirus and the stay-home order. The $330 million bill emphasizes three elements that will benefit impacted businesses and their workers: liquidity to preserve cash flows, stability to give businesses confidence moving forward, and recovery aid to help them push through the pandemic.

“This is bill is just a start, but it could be the difference for businesses and families who are trying to keep their livelihood,” said Senator Mike Goggin (R-Red Wing). “Given these unprecedented circumstances it is imperative that we continue to move forward and stay open to initiatives that will boost our economy by providing extra security to businesses, families, and farmers.”

Small businesses struggling with cash flow due to the crisis will be able to keep more money on hand thanks to delayed tax payments for S-corporations, partnerships, and C-corporations; delayed installments of estimated tax payments; delayed accelerated sales tax payments, and delayed general statewide business property tax payments.

The bill provides full, retroactive conformity to Section 179 of the federal tax code, which will allow farmers and other small business owners to deduct large equipment purchases.

More families with children in school will be eligible for the K-12 tax credit, thanks to a higher qualifying income threshold.

Other provisions include:

  • A fairer school equalization aid formula, so districts with low property wealth will get more revenue
  • An elimination of sunset and continued funding for the Angel Investment Tax Credit
  • Charitable gaming tax relief to keep more tax dollars in local communities
  • Making federal Paycheck Protection Program loans non-taxable on Minnesota taxes
  • A reduced tax rate for low-income qualifying class 4D rental property

Federal and state governments have already authorized extensions of income tax payments, sales and use tax payments, and MinnesotaCare and Provider tax payments.