Legislation passed off the Minnesota Senate floor Thursday on a bipartisan vote of 55-12 conforming Minnesota tax law with federal guidance to exempt recipients of Paycheck Protection Plan loans from state taxes. The measure provides immediate relief for small businesses who are in the midst of filing their taxes.
“This bill provides immediate relief to those small businesses throughout our state that used PPP loans to keep their workers on the payroll during the darkest days of this pandemic, and now we can do the right thing by making sure they aren’t hit with an unexpected tax burden,” said Senator Aric Putnam (DFL-St. Cloud). “While we have more work to do to help the Minnesotans who have been hardest hit by this pandemic, this is a positive step towards helping small businesses recover.”
During floor debate of the legislation, Senator Putnam introduced an amendment extending personal protective equipment as a classroom related expense to the $250 education expense deduction, providing relief for teachers who spent money out of their own pocket to buy ppe like masks and sanitary wipes for their classrooms. The amendment was adopted in the final bill.
“Our teachers have stepped up in ways big and small to help their students and their families during the pandemic, including by buying masks for their students,” said Senator Putnam. “This amendment is just one small way we can give some support to the teachers who have done so much for our students and their families.”