COVID-19 Update 10/23/2020

 

Section 179 Tax Relief Passes in MN Special Session

On October 15th, in its fifth special session, the Minnesota Legislature passed a bill to conform to Section 179 expensing effective for tax year 2020 – providing $208 million in tax relief over the next three years.

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 provides critical support to Minnesota small businesses, as our state continues to deal with the public health and financial impacts of the pandemic.

 

Keep Current on Disaster Relief Programs

Small businesses and non-profits can now register for the BRP’s (Business Relief Programs) Instant Email Notification Service to stay updated on the availability of new disaster relief programs.

Businesses have a constantly growing number of resources and relief programs to turn to, including federal aid, grants and emergency loans from states, cities, community organizations and global non-profit organizations.

To receive email notifications of new federal, state, and local programs, you can register at the BRP online portal here. 

 

In Case You Were Wondering…

While House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin inch closer to putting “pen to paper” on a large COVID-19 stimulus package, Senate leaders are discouraging the White House from making a deal ahead of the Nov. 3 election.

Senate Majority Leader Mitch McConnell told GOP colleagues this week that a stimulus deal in the $2 trillion range that Pelosi and Mnuchin are negotiating could splinter GOP ranks and disrupt the Senate’s plans to confirm Amy Coney Barrett to the Supreme Court next week.

McConnell has not been part of the Pelosi-Mnuchin talks and told reporters this week that if a deal emerges that passes the House, he would put it on the Senate floor “at some point,” but perhaps not before the election.

The chances of passing a stimulus bill out of the House before the Nov. 3 election drop to virtually zero if a deal doesn’t come together by tonight (October 23) and isn’t in writing by the weekend. And there are no indications that the legislative work that needs to happen to make this real is happening.

 

Note: This content and analysis is for informational purposes only and should not be construed as legal advice. Please consult your legal and financial advisors for detailed information before taking any action.

 

Written by aasp@aaspmn.org

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