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.