Minnesota Small Business Can Now Deduct up to $1 Million in Essential Purchases
NFIB, or the National Federation of Independent Business, Minnesota’s leading small business organization, applauds the Senate for passing important small business legislation. The House was the first to pass the $1.9 billion jobs and infrastructure bonding bill. The Senate followed suit. Included in that bill is important deductions for small business owners, including farmers.
Minnesota has been far out of conformity with the federal tax deduction for small businesses and farms, which allows those small business owners and farmers to deduct up to $1 million per year for essential equipment purchases. Minnesota, however, ha only allowed business owners to deduct $25,000 plus 20% of the purchase the first year. NFIB has been pushing hard for this for years and has testified many times in support of this important legislation. Governor Walz is expected to sign the large omnibus bill containing this critical measure.
“Finally, the legislature has passed something that benefits small business owners,” said State Director in Minnesota, Mike Hickey. “Right now, small business owners across the state are struggling with reduced revenue and health mandates. Many have had to lay off employees and some have even closed their doors for good. The ability for small businesses to now deduct more of their essential equipment frees up money for them to put back into their businesses and get back to what they do best: support Minnesota’s economy, their employers and their employee’s families.”
The current law is extremely inadequate and overly complex. This provision should have passed years ago but we certainly welcome the strong bipartisan support this received and Minnesota just became a more competitive state,” said Hickey.