Federal and Minnesota Tax Codes
Late in 2017 there was a major change to the Federal Tax Code that was passed by Congress and signed by President Trump. The Minnesota Legislature is working on legislation to get the Minnesota Tax code to conform to the Federal code. The House tax bill, HF 4385 was considered by the Full House of representatives on April 30. The tax bill passed the Minnesota House of Representatives 90-38. The Minnesota Senate has unveiled their tax bill. When it passes there will likely be differences from the Minnesota House bill that will need to be resolved in conference committee.
Getting the Minnesota tax code more in line with the Federal tax code was a high priority of many farm groups and organizations. The Minnesota tax code would make changes to individual, corporate and estate taxes plus section 179 for equipment, exchanges on equipment and bonus depreciation. If the Minnesota tax code is not in line with the Federal code farmers taxes would be a bit more complicated. If they are not the same wouldn't that mean that farmers would have to have 2 depreciation schedules, one Federal and the other for Minnesota?