Today the Senate passed a tax conformity bill, bringing Minnesota in line with recent federal tax changes and cutting tax collections by more than $100 million. The bill was passed with bipartisan support and is headed to the Governor’s desk for his signature.  

“With inflation and rising costs plaguing pocketbooks and families struggling to make ends meet, it is appropriate that the first bill we passed off the Senate Floor is one that provides tax relief to so many,” said Senator Michael Kreun (R-Blaine). “I’m hopeful that as the year continues, there will be more opportunities for further tax relief, specifically in the form of eliminating the tax on social security income. There’s more work to do and I’m hopeful that we will be able to get it done for families across the state.”

The bill aligns the Minnesota tax code with Federal tax changes that resulted in many tax changes, including: The Coronavirus Aid, Relief, and Economic Security (CARES) Act from 2020, The American Rescue Plan (ARPA) Act from 2021, and The Inflation Reduction Act (IRA) from 2022. 

Provisions included in the bill:  

• Expand eligible expenses to college savings accounts through Section 529 plans 
• Exclude shuttered venue operator grants from being counted as income 
• Allows for student loan payments by employers 
• Increases the amount a business can provide for employee child care benefits 

Notably missing from the bill is the elimination of the tax on Social Security, or any reduction in personal income tax rates. Senate Republicans attempted to amend these changes into the bill but were struck down by Senate Democrats.