The bill amends Minnesota Statutes 2022, section 290.05, by adding a new subdivision that provides specific business exemptions from taxation for corporations and taxpayers who received paycheck protection program (PPP) loans. Under the new provisions, corporations that have received PPP loans will be exempt from taxation starting with the taxable year immediately following the year in which their cumulative tax payments equal or exceed the total amount of PPP loans received. This exemption applies to all other corporations for taxable years beginning after December 31, 2023. Similarly, taxpayers subject to tax under section 290.03 will also see their trade or business income exempted under the same conditions related to PPP loans.

Additionally, the bill defines "trade or business income" and outlines how to calculate the amount of tax paid on this income. It specifies that the exemptions will be effective for taxable years beginning after December 31, 2023, and grants the commissioner of revenue the authority to require necessary documentation for administering these exemptions. The bill aims to provide financial relief to businesses that benefited from federal assistance during the COVID-19 pandemic.

Statutes affected:
Introduction: 290.05