ST. PAUL – On the third day of session, the Minnesota House of Representatives approved a measure providing $21.7 million in immediate tax relief to hardworking Minnesotans by conforming state tax provisions to that of the federal government. State Representative Tim Miller (R-Prinsburg) supported the measure.
“We’re viewing this as Phase One of our comprehensive tax relief proposal that will be coming forward in 2017,” Miller said. “I’m glad we’ve hit the ground running on tax relief so early in session, and I look forward to approving a more substantial proposal benefitting millions of middle-class Minnesotans in the very near future.”
Without quick approval of the federal tax conformity bill, Minnesotans who file their taxes early could face higher tax bills, a situation all lawmakers wanted to avoid. The Department of Revenue has noted 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.