Minn. Bill Would Drop Forgiven Pandemic Loans From Income

Under a bill introduced in the Minnesota Senate, the state would exclude from gross income amounts forgiven for small-business loans granted as a response to the novel coronavirus pandemic.

S.F. 263, introduced Thursday, would exclude from gross income amounts forgiven from paycheck protection loans granted by the federal Coronavirus Aid, Relief and Economic Security Act . The bill would conform the state to the federal exclusion of the forgiven loan amounts.

The bill would also allow partnerships, limited liability companies and subchapter S corporations to elect to be treated as C corporations for state tax purposes. If enacted, the bill would take effect for tax years beginning in 2021.

The bill was introduced by Sen. Thomas Bakk, I-Cook; Sen. Carla Nelson, R-Rochester; Sen. Ann Rest, D-New Hope; Sen. Roger Chamberlain, R-Lino Lakes; and Sen. David Tomassoni, I-Chisholm.

--Editing by Vincent Sherry. 

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