Walz signs 1st bill passed by lawmakers in 2023
Governor Walz signs 1st bill passed by lawmakers in 2023 (Credit: KSTP)
(ABC 6 News) – Governor Tim Walz signed bipartisan legislation providing $100 million in tax cuts to Minnesota individuals and businesses.
The first bill to pass in the 2023 legislative session, Chapter 1, HF 31 will update several provisions in the state’s tax code to conform to the federal tax code for tax years 2017 through 2022. It is the fastest a tax conformity bill has ever been enacted in Minnesota.
“This bipartisan legislation will make tax filing easier and provide tax cuts to students and businesses across Minnesota,” said Governor Walz. “We are working swiftly and collaboratively to deliver on things that will lower costs for families. I’m grateful to our partners in the legislature who wasted no time getting this done for Minnesota.”
“Lawmakers and Governor Walz recognized the need to get Minnesota’s tax code aligned with the federal tax code in order to provide millions of dollars in tax cuts to individuals and business,” said Minnesota Department of Revenue Commissioner Paul Marquart. “By moving quickly to get this bill passed, Governor Walz and lawmakers have given the department time to update affected forms and instructions and ensure a smooth opening to the income tax filing season.”
Areas of tax cuts in the new law include:
Exempting student loan forgiveness from state taxes
• Currently, loan forgiveness is exempt from income for only limited situations. This provision exempts most types of student loan forgiveness from income for most reasons effective for taxable years 2021-2025.
Tax cuts for businesses impacted by pandemic
• The bill provides tax cuts for businesses receiving Shuttered Venue Operator Grants. The program requirements are targeted to live theater and performing arts organizations that suffered reductions in revenue due to COVID-related closures.
• An exclusion from income is also provided for emergency loan and grant assistance programs that were enacted by the federal government, including forgiveness of Economic Injury Disaster Loans for impacts of COVID-19, Restaurant Revitalization grants, and additional loan assistance programs of the Small Business Association