HF373 (Legislative Session 94 (2025-2026))
Individual income and corporate franchise tax; business exemptions provided.
AI Generated Summary
The bill proposes changes related to taxation in Minnesota, particularly focusing on exemptions for businesses. Here is a simplified summary:
Corporate Tax Exemption: Corporations that received loans from the Paycheck Protection Program (PPP) will be exempt from state taxation once the total amount of taxes they have paid exceeds the total amount of PPP loans they received. This exemption will start from the taxable year following the year when their cumulative tax payment matches or surpasses their PPP loan amount. The calculations for this start with the tax years beginning after December 31, 2025. Other corporations will enjoy exemptions for tax years starting after December 31, 2025 as well.
Individual Trade or Business Income Tax Exemption: Similar to corporations, individual taxpayers who received PPP loans will be exempt from taxation on their trade or business income. This exemption kicks in the year after their cumulative tax payments exceed the amount of their PPP loans. The start date for calculating this exemption is also after December 31, 2025. Other taxpayers will receive this exemption for their trade or business income starting after December 31, 2025.
Definition of Trade or Business Income: The bill specifies what constitutes trade or business income, which includes specific types of income and deductions as defined under the Internal Revenue Code.
Documentation: The bill allows the Commissioner of Revenue to require any documentation deemed necessary to administer this new tax exemption rule effectively.
Overall, the bill aims to reduce the tax burden on businesses and individuals who have received PPP loans, with the exemption applying after their total tax payments have equaled or exceeded the loan amounts, focusing on relief starting after the year 2025.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"A new subdivision providing exemption criteria based on PPP loans and cumulative tax paid."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes section 290.05 by adding a subdivision regarding business exemptions related to taxpayers who received a Paycheck Protection Program loan.",
"modified": []
},
"citation": "290.05"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References section 290.02 for corporations in relation to tax exemption criteria under the amended section 290.05.",
"modified": []
},
"citation": "290.02"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References section 290.03 for tax obligations on trade or business income in relation to tax exemption criteria under the amended section 290.05.",
"modified": []
},
"citation": "290.03"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References section 290.0131 for additions to income in calculating business income under amended section 290.05.",
"modified": []
},
"citation": "290.0131"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References section 290.0132 for subtractions from income in calculating business income under amended section 290.05.",
"modified": []
},
"citation": "290.0132"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References section 290.17 for assigning or allocating amounts to Minnesota in calculating business income under amended section 290.05.",
"modified": []
},
"citation": "290.17"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References section 276 of Public Law 116-260 defining terms for Paycheck Protection Program as used in the amended Minnesota Statutes section 290.05.",
"modified": []
},
"citation": "276 of Public Law 116-260"
}
]