Miller: Senate Coronavirus Economic Recovery Act targets help to small businesses, farmers, schools

The Minnesota Senate approved with bipartisan support a major Economic Recovery Act to help small businesses, farmers, schools, and charities battling financial hardship caused by the coronavirus and the stay-home order. The $330 million bill emphasizes three elements that will benefit impacted businesses and their workers: liquidity to preserve cash flows, stability to give businesses some level of confidence moving forward, and recovery aid to help them push through the pandemic.

“The health and well-being of Minnesotans remains a top priority, but we also have a responsibility to help businesses, farmers, schools, and local charities make it through this crisis,” said Senator Jeremy Miller (R-Winona). “Between federal stimulus programs like the CARES Act, and state assistance programs like what we have passed previously and what is included in this bill, we are taking crucial steps to provide assistance to small businesses, farmers, schools, and local charities. I will continue to encourage the Governor to begin reopening Minnesota’s economy in a safe and responsible manner.”

This bill provides relief to small businesses struggling with cash flow due to the crisis by delaying tax payments for S-corporations, partnerships, and C-corporations; delaying installments of estimated tax payments; delaying accelerated sales tax payments; and delaying general statewide business property tax payments.

The bill provides full, retroactive conformity to Section 179 of the federal tax code, which will allow farmers and small businesses to fully deduct large equipment purchases.

This bill provides a fairer school equalization air formula, so districts with low property wealth will get more revenue.

This bill also provides tax relief to charities to help keep more tax dollars in our local communities.

Other provisions in the bill include:

  • Makes more families with children in school eligible for the K-12 tax credit, thanks to a higher qualifying income threshold.
  • An elimination of sunset and continued funding for the Angel Investment Tax Credit.
  • Making federal Paycheck Protection Program loans non-taxable on Minnesota taxes.
  • A reduced tax rate for low-income qualifying low-income class 4D rental property.

Federal and state governments have already authorized extensions of income tax payments, sales and use tax payments, MinnesotaCare and Provider tax payments, and occupation taxes paid by mining companies.