St Paul (KMHL) – On Thursday State Representative Chris Swedzinski of Ghent called for immediate action to spare Minnesota businesses from owing state taxes on forgivable emergency loans recently issued by the federal government. In a press release, Swedzinski mentions that The Tax Foundation reports Minnesota is the only state in the Upper Midwest that has yet to exempt forgiven Paycheck Protection Plan loans from state income taxes, the loans that were offered as lifelines for businesses to keep employees o the payroll and meet other financial obligations.
“The state has a 1.6 billion surplus, so there certainly is not a lack of revenue. Let’s not hold it hostage until the end of the session when it could slip through the cracks,” Swedzinski said, “If the governor calls for this bill, it could be on his desk in no time. Let’s send him a clean bill – no amendments – to show bipartisan support for our business community.”
More than 102,000 Minnesota businesses received PPP loans.