Senate Passes Bill to Aid Small Business, Farmer Recovery

Cited as an economic recovery act, the Senate passed an omnibus tax bill Thursday, April 30, aimed to aid small businesses, farmers and school districts.

Sponsored by Senate Tax Chair Roger Chamberlain, R-Lino Lakes, the bill would delay tax payments for S-corporations, C-corporations and partnerships. It also would delay estimated tax payments, general statewide business property tax payments and accelerated sales tax payments.

The intent, according to Chamberlain, is to improve businesses cash flow by delaying amounts owed the State of Minnesota.

Furthermore, the bill would allow farmers and small business owners to deduct taxes on large equipment purchases by providing full conformity to Section 179 of the federal tax code.

To encourage innovation investments, the bill would continue funding for the Angel Investment Tax Credit. It also would exempt the loans businesses secured through the federal Paycheck Protection Program from Minnesota taxes.

To aid schools, the bill adjusts the school equalization formula to provide more revenue to districts with lower property wealth.

In other action, the Senate passed a bill that would ban the use of trichloroethylene (TCE), which is considered a toxic chemical that is used in manufacturing. Action on the bill stems from the temporary shutdown of Water Gremlin in White Bear Lake due to high emissions of TCE.