ACTION ALERT - PPP LOAN TAX CONFORMITY (SF 263)
Contact your State Representative and urge them to support
How Payroll Protection Plan tax law impacts you
The drastic impacts on businesses from COVID-19 are well known. Every day another business closes its doors. While federal CARES dollars helped some businesses weather the storm, Congress recognized that this emergency funding should not be taxable — and made sure that it would not be at the federal level. But businesses are now discovering an unexpected problem because of Minnesota tax law:
Forgivable PPP loans are taxable at the state level.
Many employers used PPP funding to keep employees on payroll and withstand the economic downturn caused by the COVID-19 pandemic. Providing state tax conformity to forgiven PPP loans, is another tool the Legislature can implement to help our employers and job creators continue to keep their businesses open and employees on the payroll.
The Minnesota Legislature has an opportunity to come together in a bipartisan manner and immediately help businesses by passing SF 263 to provide federal tax conformity for these loans. We strongly encourage the Legislature to pass this relief as a stand-alone bill, and the Governor to sign it as soon as possible.
Please contact your legislator! Urge them to support federal tax conformity for forgiven PPP loans.
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