The $1.8B bonding bill passed both the House and Senate yesterday (10/15/20) in St. Paul. The jobs and infrastructure bill has far reaching impacts through the state of Minnesota, including here in the Owatonna area.
First, for businesses, section 179 conformity is something businesses along with chambers have been pushing for years and it was passed in this bill. A business is allowed to use section 179 based on the amount of its qualifying capital expenditures in a taxable year.
Why is federal conformity important?
Section 179 of the federal tax code dictates when businesses can deduct the cost of purchasing certain equipment. In 2019, Minnesota conformed to some federal tax reforms, but not many of the expensing provisions. This put small businesses and farmers at a disadvantage and hit many with retroactive bills. Aligning state and federal tax codes for section 179 expensing:
Our Chamber has approximately 530 members that invest their resources, employee volunteerism and confidence in the Owatonna Area Chamber of Commerce & Tourism and the business community.