HELP FOR MEMBERS TO INVEST IN THEIR BUSINESSES
On Thursday, the Minnesota Legislature passed a bill to conform to section 179 expensing, which will provide $208 million in tax relief over the next three years. The House passed the bill 100-34 on Wednesday and on Thursday, the Senate voted 64-3 for passage. The bill now awaits Governor Tim Walz’s signature. We expect he will sign the bill.
Over the past two sessions the MPMA has been working with other business groups and the Minnesota Chamber of Commerce to move state tax law into conformity with the federal 2017 Tax Cuts and Jobs Act. State tax law capped deductions at $25,000. With state and federal tax laws now aligned, the cap is set at $1 million, allowing great tax relief for our members.
Aligning state and federal tax laws for section 179 expensing will:
· Help Association members reinvest in their businesses
· Allow retroactive changes for like/kind exchanges in 2018 and 2019
· Bring Minnesota inline with other surrounding states
· Reduce state tax law complexity and processing costs
· Prevent members from paying more in state taxes than they do on their federal returns
There were also many local bonding projects included in the bill that will be vitally important for some of our member’s local communities.