Skip to main content

Minnesota Republicans looking to make PPP loans exempt from state taxes

Congress made PPP loans exempt from federal taxes late last year.

Minnesota lawmakers are pushing to make Paycheck Protection Program loans exempt from state taxes.

On Monday, Rep. Greg Davids, R-Preston, Republican lead on the House Taxes Committee, sent a letter to committee chair Chair Rep. Paul Marquart, DFL-Dilworth, asking for action on a bill that would exempt PPP loans from state taxes.

Davids cited a $1.6 billion surplus projected on Friday for the state’s two-year budget cycle, marking a turnaround from a projected $1.3 billion deficit in November.

“In light of the state’s $1.6 billion budget surplus, we have the resources needed to address this issue quickly. Further delays will force businesses to file extensions as they wait for action by the legislature,” the letter reads.

In late 2020, Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which made PPP loans meeting the specified criteria exempt from federal taxes.

Still, a handful of states, including Minnesota, have yet to exempt the loans from state taxes.

Gov. Tim Walz said he was open to exempting PPP loans from state taxes at a media availability last week, before the state’s budget surplus was announced. Walz said he would know more after the budget forecast.

“I’m more than willing to have that conversion,” Walz said. “It’s not intended to punish those very businesses it helped.”

As of June, just over 98,000 Minnesota businesses had received more than $11.2 billion in PPP loans, according to the U.S. Small Business Administration.

Last month, the Biden Administration announced that small businesses and nonprofits with fewer than 20 employees and sole proprietors can apply for a second round of PPP loans through March 9, after complaints that too much of the first round of loans went to large corporations.

PPP loan applications will open up March 10 through March 31 for all other eligible entities. 

The latest forecast from Sven Sundgaard

Next Up

Anthony Edwards

Ant ejected, Wolves blow huge lead and lose to slumping Hawks

The Timberwolves missed another opportunity to get over .500.

Xcel Energy Center

NHL announces make-up dates for Wild postponements

The Wild will play 40 games in the final 77 days of the regular season.

the mayo clinic - edit

Group says Mayo should be 'severely punished' over research puppy's death

The puppy died two days after undergoing a procedure at a Mayo research facility.

FLickr - minneapolis police - Tony Webster - Feb 2020 - crop

Charges: Man kidnapped woman, sexually assaulted her at gunpoint

The suspect faces three separate felony charges.

mn state capitol january 17 2021

St. Cloud 'Boogaloo Boi' who discussed attack on MN Capitol gets 2 years

He was charged with illegally possessing a machine gun.

Chris Smith

Gophers add All-Ivy League D-tackle from Harvard

Chris Smith will be eligible immediately as a graduate transfer.

school bus

High school basketball team returns from game to find bus driver dead

Members of the girls team returned to the bus to find the driver unresponsive.

covid-19 testing site sign

Minnesota AG sues COVID testing site, alleging it sent false results

Sometimes the company didn't send people their results at all, the lawsuit alleges.

optum headquarters chad davis wikimedia commons

UnitedHealth Group says it made $287B last year, $24B of it profit

The corporation's Optum business represented a significant chunk of that total.

covid

Omicron may have already peaked in Minnesota

Reported cases lag what's happening in real time, so the newly reported cases over the next week or so will still be very high.

MnDot snow plow cam I-35 12-10-21

MnDOT reveals 50 snowplow name finalists

Voting is open through Wednesday, Jan. 26.

Related

Tim Walz

Walz's $52.4 billion budget increases school spending, raises taxes on wealthy

He says the budget will help level the playing field and ensure all Minnesotans have a fair shot at economic recovery,

State Capitol.

Minnesota's budget outlook improves, now projecting $1.6B surplus

The state was projecting a $1.3 billion deficit in November.

Walz

Gov. Walz releases revised budget proposal, here's what's in it

Walz unveiled his revised budget Thursday, after the state projected a $1.6 billion budget surplus.

coronavirus, covid-19

Disaster loan program now available to MN small businesses

Loans were made available by the U.S. Small Business Administration.

State Capitol.

Walz eyes COVID-19 relief package totaling $300-$600 million amid budget surplus

The state forecasted a budget surplus for the remainder of the biennium.

One-dollar bill, cash, money

Champlin man pleads guilty to fraudulently obtaining $1.2M in PPP funds

Despite not actually owning a business at all, the man received $1.2 million in loans through the Paycheck Protection Program

money, cash, $100

MN man charged with fraudulently obtaining $841,000 in COVID-19 PPP loans

He applied for the loans for a business that had been shut down in 2018.