ST. PAUL – On January 5, the Minnesota House of Representatives unanimously approved a measure that would provide $21.7 million in immediate tax relief to hardworking Minnesotans by conforming state tax provisions to that of the federal government.
“This is good news for people who are ready to start working on their tax returns,” said State Representative Bob Gunther (R-Fairmont). “This is the first step of our comprehensive tax relief efforts this session, and with this bill’s passage we can begin work on providing significant tax relief to millions of middle class Minnesotans.”
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.