[Listen] PPP Forgiven Loans Still Taxable In Minnesota
Many farmers and small business qualified for and were able to take advantage of the Payment Protection Program or PPP which was part of the CIVID-19 bill passed by Congress and signed by President Trump. If the proper procedures were followed the loans could eventually be forgiven. The PPP loans were very helpful as farmers and other small business struggled with the COVID-19 pandemic.
When Congress included the PPP provisions were included so that if the loan was forgiven it was not taxable on your Federal Returns. However, under Minnesota's tax code PPP forgiven loans are still taxable. Bob Worth with the Minnesota Soybean Growers Association said all the states around PPP forgiven loans are not taxable. There was a bill in the Minnesota Senate to make PPP forgiven loans non-taxable and it passed by a wide margin with bipartisan support.
However, the bill in the Minnesota House was voted down along party lines. I do not know a lot about the legislative process but it would seem like the issue is now dead for this session. However, Bob said he thought there was a good chance something could still happen this session. Bob added that talking to Minnesota House leadership they were maybe going to add it in to another bill. In the Minnesota Senate it was a stand alone bill.
Click on the link and listen to Bob talk about the PPP forgiven loan tax issue and others like the progress on moving Minnesota's standard gasoline to 15 percent ethanol and higher blends of biodiesel.
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