The Minnesota Senate today approved a bipartisan $944 million tax bill aimed at jumpstarting the economy and helping workers and small business owners recover from COVID-19. The bill does not include any of the significant tax hikes proposed by Governor Walz and House Democrats, who proposed raising taxes by over $1 billion.

“This bill provides millions of dollars in tax relief, keeping money in your pocket and revamping our economy after a difficult year,” Senator Gene Dornink said. “Our state had a surplus and received billions in federal aid, it’s time we put Minnesotans first and let them spend their own money.” 

The bill empowers Minnesotans and encourages economic growth with two Republican proposals: full conformity to federal tax rules for the forgivable Paycheck Protection Program loans, and full conformity for federal pandemic unemployment benefits up to $10,200.

Job creators and business owners will see lower property taxes because of this bill. The bill also replenishes $491 million that was borrowed from the state budget reserve two years ago and provides relief to Minnesota contractors for their June accelerated sales tax payments.

  Other highlights of the bill:

• Financial support for the Oriented Strand Board (OSB) project in Northern Minnesota. The OSB was recently approved to receive $15 million in funding from the Iron Range Resources And RehabilitationBoard and this crucial project will bring hundreds of direct and indirect jobs to the community.
• The bill extends the Angel Tax Credit by $5 million, which encourages investments in startup companies focused on high technology, new proprietary technology, and other groundbreaking fields. 
• The bill extends the Historic Structure Rehabilitation Credit, the hugely successful job-creating tax credit that helps rehabilitate historic buildings. A study found that every $1 spent on the tax credit generates $9.50 in private sector economic activity.
• The bill emphasizes affordable housing and workforce housing with a new tax credit to bring private money into the marketplace. 
• The bill provides annual aid payments to counties to address student homelessness.