Senate Passes PPP Loan Forgiveness - SF 263
On a strong by bipartisan vote last week, the Minnesota Senate tried to build some momentum on this issue and pass the PPP loan forgiveness legislation. The legislation conforms with the federal law ensuring that the loans are not taxable in Minnesota and also that all deductions allowed under the federal law are allowed on the state.
During the floor debate, several senators, including the author Senator Tom Bakk (Cook), urged house members to take action on this soon, especially since tax filing season is underway. Under the Minnesota constitution, tax bills need to originate in the House, giving them some additional leverage. There are still hopes that an agreement can be reached between the Senate and House leadership to possibly pass both PPP loan forgiveness and include no taxation of the federal CARES act unemployment insurance benefits. If no agreement is reached by the leadership, final passage on the critical PPP loan provision may not occur until May.
