j. Tax conformity

Tax conformity 2021, 1st Special Session HF9/SF26 Chapter 14, Article 1, Section 1 Tax omnibus bill Effective: Various

Short description Minnesota doesn’t automatically change its tax laws when the federal government makes changes, and that means that it’s up to the legislature to pick and choose which adjustments in the federal tax code to mirror on a state level. The legislature acted upon many of the tax conformity pieces.

Summary The compromise tax bill fashioned from the omnibus bills that passed the House and Senate conforms to many changes in federal tax law made since late 2019, but not all of them. One is making forgiven Paycheck Protection Program loans tax exempt, as well as unemployment benefits up to $10,200.

Implications For those members who used Paycheck Protection Program loans, the state and federal rules now align. Check with your accountants on the implications for your business.

Bill language https://www.revisor.mn.gov/laws/2021/1/Session+Law/Chapter/14/