Bipartisan bill provides millions in tax cuts for Minnesotans
January 23, 2023
Governor Tim Walz has signed bipartisan legislation providing $100 million in tax cuts to Minnesota individuals and businesses. This bill, the first to pass in the 2023 legislative session, will update several provisions in the state’s tax code to conform to the federal tax code for tax years 2017 through 2022. It is the fastest a tax conformity bill has ever been enacted in Minnesota.
Areas of tax cuts in the new law include:
Exempting student loan forgiveness from state taxes
Currently, loan forgiveness is exempt from income for only limited situations. This provision exempts most types of student loan forgiveness from income for most reasons effective for taxable years 2021-2025.
Tax cuts for businesses impacted by pandemic
The bill provides tax cuts for businesses receiving Shuttered Venue Operator Grants. The program requirements are targeted to live theater and performing arts organizations that suffered reductions in revenue due to COVID-related closures.
An exclusion from income is also provided for emergency loan and grant assistance programs that were enacted by the federal government, including forgiveness of Economic Injury Disaster Loans for impacts of COVID-19, Restaurant Revitalization grants, and additional loan assistance programs of the Small Business Association.
Reach out to our team to discuss the bill and how it may impact you and your business.
Meet the Expert
Chris Powers, CPA
Chris helps her clients confidently navigate tricky tax laws and complex regulatory challenges.
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