New legislation includes Governor’s priorities to invest in small businesses and drive economic recovery and support essential workers and working families
[ST. PAUL, MN] – Today, Governor Tim Walz signed the tax bill, the final bill in Minnesota’s COVID-19 Recovery Budget—Minnesota’s state budget for the next biennium, into law, providing direct relief to small businesses, essential workers, and working families across the state. As Minnesota emerges from the COVID-19 pandemic, Minnesota’s COVID-19 Recovery Budget [ link to release] includes Governor Walz’s priorities to invest in small businesses and drive economic recovery, ensure students catch up on learning to succeed for years to come, and support essential workers and working families.
“Small businesses are the lifeblood of Minnesota, but Minnesota’s small businesses and workers have borne a large burden of the COVID-19 pandemic to protect our communities and save lives,” said Governor Walz. “Today, I am proud to sign this final piece of Minnesota’s COVID-19 Recovery Budget into law to provide direct support to businesses and working families across the state.”
Highlights of the bill include:
- $250 million in direct financial support to Minnesota’s essential workers on the frontlines of the COVID-19 pandemic
- Federal conformity for excluding up to $10,200 of unemployment insurance benefits from gross income in tax year 2020 for taxpayers with an annual gross income of less than $150 thousand
- Federal conformity for excluding forgiven loans through the Paycheck Protection Program loans (PPP)
- The establishment of a Minnesota Housing Tax Credit at $9.9 million annually
- Extending the Working Family Credit to 19 and 20-year-olds
- A one-year extension of the Historic Rehabilitation Tax Credit
- The creation of a local homeless prevention aid to counties, appropriating $20 million annually for 6 years
- One-time supplemental local government aid of $5.053 million
The bill establishes that the Commissioners of Health and Human Services may declare public health disaster for eligibility for federal assistance and provides for other COVID-19 emergency response activities related to redeployment of state workers, unemployment insurance, testing, and vaccination.