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Minn. Senate pass bill to support businesses, farms, schools

Sen. Carrie Ruud
Sen. Carrie Ruud
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The Minnesota Senate approved with bipartisan support a major Republican-led Economic Recovery Act to help small businesses battling financial hardship.

The $330 million bill emphasizes three elements that will benefit impacted businesses and their workers: liquidity to preserve cash flows, stability to give businesses some level of confidence moving forward, and recovery aid to help them push through the pandemic.

“Small businesses, farmers, and schools are all facing unprecedented challenges during this pandemic and we will continue to prioritize support for these folks through this challenging time,” state Sen. Carrie Ruud, R-Breezy Point, stated in a news release. “This recovery package is urgently needed to mitigate the economic challenges brought about by coronavirus and the widespread stay-at-home order. The input, support, and resilience of Minnesotans will carry us through this time as we rebuild our economy and our communities together.”

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.

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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 low-income class 4D rental property.

Federal and state governments have already authorized extensions of income tax payments, sales and use tax payments, MinnesotaCare and Provider tax payments, and occupation taxes paid by mining companies.

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