Minnesota businesses would get $46 million in immediate tax relief under a bill quickly assembled by House and Senate negotiators Wednesday, May 9.
Five days after Gov. Mark Dayton vetoed a more generous tax-cut bill, an all-Republican conference committee passed a bill that the authors say removes all the provisions the governor opposed. The previous bill would have cut taxes $200 million over three years and left a $145 million hole in the next two-year budget.
"There's no reason for the governor to veto this bill," said House Taxes Committee Chair Greg Davids, R-Preston. "The governor needs to sign this bill to give the people of Minnesota a win."
The bill would provide businesses with 50 or fewer employees an upfront sales-tax exemption for capital equipment purchases, cutting their taxes by $12.6 million in the year starting July 1.
It would freeze the statewide property tax on businesses for one year, resulting in a $10.2 million tax cut.
The state would offer an additional $4.5 million in "angel" tax credits to encourage investments in startup companies and $3.8 million for research-and-development tax credits under the bill.
Senate Taxes Committee Chair Julianne Ortman, R-Chanhassen, said providing tax relief and creating jobs are GOP lawmakers' top priorities, and this bill would deliver on both of them.
She said Republicans were willing to compromise with Dayton to write a bill that he would sign, but she said Dayton has not yet approved it.
Davids said the full House would vote on the bill later Wednesday. Ortman said the Senate would take action as soon as it receives the bill.
