Hopefully the new projected $1.65 billion surplus for Minnesota’s budget will pave the way for NFIB‘s top tax priority this year, no taxation of PPP loans. Responding to the recent forecast, the Senate Tax Committee passed the PPP loan forgiveness bill out of committee March 4th, setting the stage for hopefully an agreement with the House for final enactment before the tax filing season is too far along.
The key factor in any agreement with the House will likely be including a provision insuring that federal unemployment insurance benefits provided under the CARES act will also not be taxable. The federal unemployment insurance benefits were rushed out quickly last March and the department did not include the normal withholding on the checks. This, and possibly some additional money for schools to run summer school classes, could be the ingredients needed to reach a deal quickly and pass it before tax season is too far along.