SF 2340

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/08/2021 09:12am

A bill for an act
relating to taxation; income; providing a limited subtraction for business expenses
paid with forgiven paycheck protection program loans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin LIMITED SUBTRACTION FOR BUSINESS EXPENSES PAID WITH
FORGIVEN PAYCHECK PROTECTION PROGRAM LOANS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies for the purpose of calculating:
new text end

new text begin (1) net income, as defined in Minnesota Statutes, section 290.01, subdivision 19;
new text end

new text begin (2) income, as defined in Minnesota Statutes, section 290.0674, subdivision 2a;
new text end

new text begin (3) alternative minimum taxable income, as defined in Minnesota Statutes, section
290.091, subdivision 2;
new text end

new text begin (4) alternative minimum taxable net income, as defined in Minnesota Statutes, section
290.0921, subdivision 2; and
new text end

new text begin (5) income, as defined in Minnesota Statutes, section 290A.03, subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "Internal Revenue Code" has the
meaning given in Minnesota Statutes, section 290.01, subdivision 31, as amended through
the date specified in that subdivision, but including the following amendments:
new text end

new text begin (1) exclusion from gross income of paycheck protection loan forgiveness under section
1106 of Public Law 116-136; and
new text end

new text begin (2) modifications to the paycheck protection loan program under Public Laws 116-142,
116-139, and 116-147.
new text end

new text begin Subd. 3. new text end

new text begin Subtraction allowed; individual filers. new text end

new text begin (a) For taxable years beginning after
December 31, 2019, and before January 1, 2022, the amount allowed as deductions in a
taxable year under section 276 of Public Law 116-260, up to $1,000,000, is a subtraction.
new text end

new text begin (b) For purposes of this subdivision, "subtraction" has the meaning provided in Minnesota
Statutes, section 290.0132, subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Subtraction allowed; corporations. new text end

new text begin (a) For taxable years beginning after
December 31, 2019, and before January 1, 2022, the amount allowed as deductions in a
taxable year under section 276 of Public Law 116-260, up to $1,000,000, is a subtraction.
new text end

new text begin (b) For purposes of this subdivision, "subtraction" has the meaning provided in Minnesota
Statutes, section 290.0134, subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin No denial of deduction. new text end

new text begin Notwithstanding Minnesota Statutes, section 290.10,
the commissioner of revenue must not deny a taxpayer a deduction that is allowed under
section 276 of Public Law 116-260.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that changes incorporated by federal changes are effective retroactively at the same time
the changes were effective for federal purposes.
new text end