ST. PAUL – State Rep. Chris Swedzinski, R-Ghent, is calling for immediate action to spare businesses throughout Minnesota from owing state taxes on forgivable emergency loans recently issued by the federal government.
The Tax Foundation reports Minnesota is the only state in the Upper Midwest that has yet to exempt forgiven Paycheck Protection Plan loans from state income taxes. These loans were offered as lifelines for businesses to keep employees on the payroll and meet other financial obligations amid COVID-19 restrictions. More than 102,000 Minnesota businesses received them.
“It would be unacceptable for our state to skim tax dollars from emergency funding sent to struggling businesses,” Swedzinski said. “The state has a $1.6 billion surplus, so there certainly is not a lack of revenue. We need to get this issue resolved now. Let’s not hold it hostage until the end of the session when it could slip through the cracks.
“If the governor calls for this bill, it could be on his desk in no time. Let’s send him a clean bill – no amendments – to show bipartisan support for our business community. Our state’s workers have suffered so much in the last year and it’s time to get their backs. There is no reason for the House to delay and play games with people’s livelihoods.”
The Minnesota Senate Tax Committee on Tuesday approved a bill that exempts PPP loans from state taxes.