Minnesota’s 92nd legislative session ended their 2021 regular session on May 17th without a budget. The Governor and Legislative leaders instead released a budget framework with a target of $52 billion for the next biennium. Lawmakers worked for four weeks on final details largely outside of the public eye until they convened a special session on June 14th. All spending bills were passed and signed into law by June 31st.
The need for a special session was largely due to a late infusion of funding from the American Rescue Plan Act (ARPA) that was signed into law by President Biden on March 11, 2021. Roughly $8.5 billion was allocated in the bill to the State of Minnesota for various programs.
A final budget of $52 billion was signed into law on June 31, 2021. This biennial budget is an increase of approximately $1.3 billion over the previous budget – much of that one-time funding from ARPA. Included in the bill are direct tax cuts of $644 million to people who lost jobs and employers who kept people working during the pandemic.
Paycheck Protection Program
The final tax bill included full conformity to federal tax law with regards to the Paycheck Protection Program at a cost of roughly $375 million in fiscal year 2022. Businesses and organizations that received PPP loans will not be subject to either federal or state income tax on the amount of the loan received.
Continue reading “2021 (Special) Legislative Session Recap”
With COVID-19 hitting businesses tremendously hard, all levels of government and other organizations have made a number of financial resources for businesses available. Below is a comprehensive list of those resources with links to where you can learn more. Continue reading “COVID-19 Business Loan/Grant Resources”
The Federal Government and State of Minnesota have taken several steps related to taxes to help mitigate the impact of COVID-19 on businesses. Below is a summary of these actions (current as of 2:15 pm March 20) and links to additional resources. Continue reading “UPDATED: COVID-19 Tax Issues for Businesses”
As you’ve likely seen, state/federal/local governments are considering a number of policy options to support businesses during these unprecedented times. Greater Mankato Growth will do all we can to keep our business community up to date on the latest developments via this blog page and our COVID-19 resources page. Check back frequently as the policy situation is rapidly evolving.
In addition, Greater Mankato Growth in partnership with the Minnesota Chamber of Commerce is taking proactive measures to advocate for business support measures. This morning Greater Mankato Growth signed onto a letter with our chamber colleagues from across the state asking the state of Minnesota to do the following: Continue reading “GMG Advocacy on Business Support”
With the new year, the Internal Revenue Service (IRS) has rolled out a new W-4 form, the document employers use to determine how much to withhold from an employees paycheck for taxes. This is the first big update to the form in three decades.
Since employers may have questions about this new form, the Southern Minnesota Area Human Resource Association is inviting Greater Mankato Growth members to join them for a networking lunch on February 4, 2020. Brad Boettcher, Partner with CliftonLarsonAllen will be providing a presentation on the new form. Additional details on the event are below. Continue reading “New Year, New W-4”
This year the Minnesota Legislature passed and Governor Walz signed into law a significant rewrite of Minnesota’s tax code to bring the state into conformity with the federal Tax Cuts and Jobs Act of 2017. This new law will have significant impacts on both individuals and businesses going forward for the 2019 tax filing season, as well as retroactively as the law may require amendments to 2018 tax returns. To ensure that our members have all the information they need on what this new law will mean for them, Greater Mankato Growth is partnering with Abdo, Eick & Meyers; CliftonLarsonAllen; and Eide Bailly to host a free forum on Minnesota Tax Reform on December 10. Our panel of tax experts will review the federal and new state tax laws and how it will impact businesses as well as discuss what you need to know about retroactive tax filings for 2018. You can register and get more information here: https://gmg.greatermankato.com/events/Minnesota-Tax-Reform-What-You-Need-to-Know-1117/details
Following Governor Mark Dayton’s veto of legislation that would have conformed Minnesota’s tax system to the new Federal tax law, there is uncertainty as to what this means for businesses and individuals. The following guest blog courtesy of Eide Bailly provides a helpful overview of where things stand and the key issues to follow moving forward.
Should you wish to discuss this issue further, please be sure to contact one of our fantastic member businesses with tax expertise. Continue reading “Minnesota Tax Conformity: What’s Next?”
The Legislature convened in February with some optimism. The state had a modest surplus that would allow some budget flexibility and a general agreement on what bills needed to be passed, if not the specific provisions they would contain. However, that optimism was in short supply as the session ended on May 20 with the Legislature, under the threat of vetoes to several bills, passed a very large budget/policy bill, a tax bill that would conform Minnesota’s tax system to the new Federal law, and a bonding bill. Governor Dayton subsequently vetoed both the federal tax conformity and supplemental budget bills, representing the bulk of the Legislature’s work this session. The Governor did sign the bonding bill, which contained top priorities for the region. Following is a summary of what happened at the Legislature in 2018. Continue reading “2018 Legislative Session: What Happened?”
The Minnesota Legislature is in recess, returning to the Capitol on April 9 for a final sprint until they adjourn on May 21. This is an ideal time to talk with your legislators about the key issues of importance to you and your business before they resume work on your priorities.
Following is an update on the key issues that Legislators have been working on and are expected to tackle once back in session.
Be sure to stay tuned to this blog for further updates as the Legislative session progresses. Continue reading “What’s Happening at the Legislature?”
Greater Mankato Growth invites you to join a delegation of Greater Mankato Business Leaders on April 18 as we travel to St. Paul to participate in the Minnesota Chamber Business Day at the Capitol. This event brings business leaders from across the state together to collectively advocate for key business issues. With the Legislature considering a major tax reform bill this year, it’s critical that our legislators hear from business leaders.
Greater Mankato attendees participating in this event will help raise the visibility of our region among state leaders as well as speak directly with legislators about the top issues for your business and our community. The event kicks off at the InterContinental Hotel in St. Paul with a legislative briefing and keynote luncheon then we travel to the Capitol for sessions with key legislative leaders and meetings with our local legislative delegation.
Continue reading “MN Chamber Business Day at the Capitol”