Under H.B. 2436, introduced Tuesday, and S.B. 2386, introduced Thursday, Minnesota would fully conform to federal treatment of Paycheck Protection Program loans. Taxpayers would be able to fully exclude their forgiven loans from gross income. Currently, a separate omnibus tax bill in the state House of Representatives would cap those exclusions at $350,000 per loan.
The bills also would provide an exemption for food service equipment used by a food service establishment to produce prepared food or drink, as well as certain supplies a food service establishment purchases to comply with pandemic-related health guidelines. The tax break for pandemic-related purchases is also included in the omnibus tax bill.
H.B. 2436 was introduced by Rep. Greg Davids, R-Preston, and S.B. 2386 was introduced by Sen. Carla Nelson, R-Rochester.
--Editing by Neil Cohen.
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