The Minnesota Senate passed legislation (SF 263) 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 is immediate relief for those businesses who did the right thing and utilized PPP loans to keep their employees on the payroll during this pandemic,” said Senator Karla Bigham (DFL-Cottage Grove) who voted for the bill. “Now the state should do the right thing by making sure these same small businesses do not face any unexpected expenses for helping their workers. This will only help our businesses recover and ensure quicker growth for Minnesota’s economy.”
Passage of the legislation comes the same day as President Biden signed into law an additional federal relief package, which will provide approximately $4.9 billion in federal aid to the state, counties, cities, schools, and Minnesota’s tribal nations. Much of this funding is one-time and has to be spent on COVID-19 related needs, but there are ongoing needs that will need to be addressed to ensure a strong recovery for Minnesota.
“Much of the positive budget balance and new aid from the federal government is one-time money, and we must use these one-time funds to prioritize relief for Minnesotans who have been hit hardest by this pandemic,” said Senator Bigham. “While today’s legislation is focused on small businesses, we should also take steps to help workers, including removing unnecessary tax burdens that will only hurt their ability to recover.”