ROCHESTER, Minn. - As lawmakers meet to hammer out Minnesota's next two-year budget, State Senator Carla Nelson says leaders have reached an agreement on a new tax bill.
As chair of the Minnesota senate's tax committee, Senator Nelson (R-Rochester) was deeply involved in negotiating the agreement with democratic members of the Minnesota House and Governor Walz. Nelson tells KIMT the $944 million bill is focused on jumpstarting Minnesota's economy, and helping small businesses and workers alike recover from the pandemic.
"It's a great bill for Minnesotans - empowering Minnesotans, and spurring economic growth. It does not include tax hikes, and does include strategic investments to help Minnesotans, our employers, and our employees thrive, not just survive, thrive, and recover stronger from COVID," Nelson said.
In addition to preventing any tax increase for state residents, Senator Nelson says the bill ensures Minnesota will not tax federal pandemic unemployment benefits up to $10,200, or PPP loans made to businesses. With the legislation set to provide close to $1 billion in tax relief, Senator Nelson believes more Minnesotans will be able to keep more of their paychecks.
"They are going to see about a billion dollars in tax relief. That is allowing Minnesotans to keep more of their hard-earned money. We know they know how to spend it better than the state government does. And we know that state government requires significant resources, but those resources are there, and they're being augmented by the federal government. We did not need to take more money out of Minnesotans' pockets."
The Senator also highlights provisions in the bill extending Minnesota's Angel Tax Credit, Historic Structure Rehabilitation Credit, and a new tax credit incentivizing the development of affordable housing. Nelson tells KIMT the bill will make its way through the Minnesota legislature and arrive at the Governor's desk before the end of this month.