ST. PAUL – On January 5, the Minnesota House of Representatives unanimously approved a measure carried by State Representative Greg Davids (R-Preston) that would provide $21.7 million in immediate tax relief to hardworking Minnesotans by conforming state tax provisions to that of the federal government.
“Getting tax conformity passed so quickly shows that House Republicans are ready to make Minnesota a better place to live and work,” said Rep. Regina Barr, R-Inver Grove Heights. “Minnesotans deserve tax relief and this is a significant step towards bringing that. Hopefully, it is the first of many pieces of good news for Minnesota’s hard working families.”
Without quick approval of Davids’ federal tax conformity bill, Minnesotans who file their taxes early could face higher tax bills, a situation all lawmakers wanted to avoid. Davids was told by the Department of Revenue that in order to avoid tax filing complications, the proposal needs to be signed into law before January 11.
Some of the provisions in the tax conformity bill include tax deductions for higher education expenses and teacher reimbursement expenses; loan forgiveness on home foreclosures from being taxed at the state level; excluding compensation from taxable income for those who were wrongfully incarcerated; and eliminating the need for two sets of depreciation schedules for those who purchase work equipment.
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