St. Paul – Today the Minnesota Senate approved a $ 681 million tax break bill designed to boost the economy and help workers and small business owners recover from COVID-19.
“I’m glad we’re passing laws that will help those hardest hit by the pandemic and give them a breather from last year,” said Senator Rich Draheim (R-Madison Lake). “Minnesota is already a high-tax state, and we shouldn’t be collecting taxes when the federal government brings in a huge surplus and billions.”
The bill also lowers statewide property taxes for job workers by increasing the statewide property tax exclusion from $ 100,000 to $ 150,000. The bill supports Minnesota industries working to get out of the pandemic, including high-tech companies, restaurants, breweries, and ethanol retailers. The assistance also aims to support affordable housing and housing for workers, manage the ongoing crises of adequate daycare across the state, and communities looking to establish public safety facilities.
The bill empowers Minnesotans and promotes economic growth. Key initiatives include full compliance with federal tax rules on the futile paycheck protection program loans that many companies used to survive the COVID-19 pandemic, as well as a bipartisan compromise that allows those in need of help most to one Part of their pandemic unemployment benefits exclude their taxes. The bill indexes the K-12 loan and the K-12 subtraction to inflation so working families can keep more of their hard-earned money.
Other highlights of the bill:
- The bill extends the Angel Tax Credit by $ 10 million, encouraging investment in startups focused on high technology, new proprietary technologies, and other breakthrough areas.
- The bill is helping struggling hospitality businesses by providing restaurants with a temporary sales tax exemption for materials, supplies, and equipment used to conform to COVID-19 guidelines, as well as a temporary tax credit for brewers and retailers for those affected by COVID-19 Alcohol-induced spoilage restrictions.
- The law expands the Historic Structures Renovation Credit, the hugely successful job creation tax credit that helps renovate historic buildings. One study found that every $ 9.50 spent on the tax credit generates $ 9.50 of private sector economic activity.
- The bill introduces a new property tax credit for childcare facilities to address the Minnesota’s childcare shortage and encourage more people to join the profession. The credit for providers is 50% of the net tax amount owed on the property for the current tax year.
- The bill emphasizes affordable housing and housing for workers with a new tax credit to bring private money to market. The bill also creates an incentive for low-income rental developments through various reductions in property tax.