PPP Tax Exemption, UI Tax Relief among highlight for small business
The 92nd Minnesota Legislature (2021-22) adjourned on May 23, 2022, with NFIB having secured several notable accomplishments for members and the small business community over the past two years.
PPP Loan Conformity. NFIB successfully advocated for and secured full state tax exemption on federal Paycheck Protection Act (PPP) Loan Forgiveness. This means small business owners did not owe state tax on the value of forgiven PPP loans – a vital bridge utilized by many Main Street businesses to weather the COVID-19 pandemic. The legislation also included state exemptions for other COVID-era loan and grant programs.
Eliminated Unemployment Insurance Tax Hikes. NFIB led the fight for $2.7 billion in state funding to refill the state’s Unemployment Insurance (UI) Trust Fund and eliminate UI payroll tax increases caused by the pandemic-driven surge in unemployment claims. This saves the average employer 30% on their UI tax bills, with many small businesses saving tens of thousands each year. Without action, every small employer would have faced a decade of higher UI taxes.
Small Business Property Tax Relief. NFIB made progress on another longtime priority, increasing the exemption from the Statewide Business Property Tax Levy from $100,000 to $150,000. Over the years, NFIB has successfully pushed to cap the levy, which previously grew with inflation, and exempt increasing amounts of small business property from the tax.
Healthcare Premium Savings. NFIB successfully supported renewal of the state’s individual market “reinsurance” program, which reduces health insurance premiums for those who buy coverage on their own by 25% or more every year. The individual market provides insurance to over 150,000 people, many of them small business owners and employees. Thanks to NFIB’s advocacy, the program will remain in effect through at least 2025.