Small Business Responds to Big Tax Credit

Date: April 20, 2016

A nearly $300 million rebate gives a much-needed boost to small businesses.

Small Business Responds to Big Tax Credit

Sweet
relief is coming for Minnesota’s Iron Range workers—and small business owners
are excited to say the least.

As
NFIB previously reported, Gov. Dayton signed a
$258 million tax credit into law that will ease the burden on small business
owners. The credit will reduce the unemployment insurance tax businesses paid
in 2015 by 25 percent for 2016.

Business
advocates are celebrating the news, saying this relief will allow operations to
flourish and provide them with security moving forward.

“This will be extremely helpful to small businesses,
and if past practice is any indication, most business owners will reinvest this
money into their business by improving their existing locations or even
expanding,” said NFIB/Minnesota State Director Mike Hickey.

Even
better news for business owners: The credit will automatically kick in if the
unemployment insurance trust fund rises above $1.6 billion in the future,
making sure the fund doesn’t take too much from business owners.

Out-of-work
miners also have reason to celebrate. Along with the tax break for small
businesses, legislators approved $29 million in unemployment benefits for Iron
Range miners. This aid will extend benefits for the unemployed workers another
26 weeks.

An
increase in steel imports to the U.S. has cut into iron ore production in
Minnesota. This resulted in the closure of seven of the 11 iron ore mining and
production facilities in the Iron Range and nearly 7,000 workers have been laid
off.

Thousands
had already exhausted their
benefits
,
and hundreds more would have run out of aid by the end of the month, according
to the Pioneer Press.

“Unemployed
Iron Range workers can breathe a small sigh of relief; help is on the way,”
said Senate Majority Leader Tom Bakk in a MinnPost article.

Related Content: News | Economy | Minnesota | Tax Relief | Taxes

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is America's leading small business association, promoting and protecting the right of our members to own, operate, and grow their business

Find out more about
NFIB Membership

Or call us today

1-800-634-2669

News

State Issues


Choose Your State

Foundations

YEF Foundation Research Center Legal Foundation

Member Benefits