K-12 Education Subtraction and K-12 Education Credit

Minnesota has both the K-12 Education Subtraction and the K-12 Education Credit, which can lower your tax payment or increase your tax refund. To be eligible, you must save receipts or invoices as documentation. Expenses that qualify: School supplies – excluding non-educational items i.e. backpacks locker organizers Private school tuition – excluding uniforms, except required […]

Increase in Minimum Wages

As of January 1, 2021, the Minnesota minimum wage will increase: For large employers – eight cent increase from $10.00 to $10.08 For small employers – six cent increase from $8.15 to $8.21 Definitions: Large employers – businesses with annual gross revenues of $500,000 or more ($10.08) Small employers – businesses with annual gross revenues […]

Paycheck Protection Program Forgiveness Extension

The U.S. Senate passed the House version of Paycheck Protection Program (PPP), which extended how long small businesses have to spend the funds.  The extension was three times the amount previously stated, changing the 8 week period to a 24 week period to spend the amount provided to the small business through PPP, with the […]

Payroll Protection Program Loan Forgiveness

On May 15th, 2020, the Small Business Administration, in consultation with the U.S Department of Treasury, released information regarding the forgiveness of the Paycheck Protection Program (PPP). Which includes an application and detailed instructions.   The following information is to guide small business along with non-profits in Minnesota to assist in their PPP loan forgiveness. […]

Payroll Protection Program

The Small Business Administration’s Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.  Businesses can apply thru their existing SBA lender.  Consult with your local lender as to whether they are participating in the program.  All loan terms will be the same […]

Economic Injury Disaster Advance Loan

Small businesses can apply for an advance of up to $10,000 related to the Economic Injury Disaster Loan.  This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue related to COVID-19.  The following apply to this program. Small business with less than 500 employees (including sole proprietorship, independent […]

Economic Injury Disaster Loan Program

The Small Business Administration has low-interest federal disaster loans for working capital available for businesses suffering substantial economic injury as a result of COVID-19.  The following is a summary of the Economic Injury Disaster Loan Program. The Economic Injury Disaster Loans are up to $2 million in assistance. The loans can provide vital economic support […]

SBA Loan Programs

Three Small Business Administration emergency capital programs are available. Low interest, long term Economic Injury Disaster Loans – These loans are up to $2 million.  The first payment is deferred for 12 months.  The application is a simple online application through the web portral at www.sba.gov/disaster.  For additional information related to the Economic Injury Disaster […]

Relaxation of Business Interest Deduction Limit

The 2017 Tax Custs and Jobs Act (TCJA) generally limited the amount of business interest allowed as a deduction to 30% of adjusted taxable income (ATI).  The CARES Act generally allows businesses, unless they elect otherwise, to increase the interest limitation to 50% of ATI for 2019 and 2020, and to elect to use 2019 […]

Net Operating Loss Liberalizations

The 2017 Tax Cuts and Jobs Act limited NOLs arising after 2017 to 80% of taxable income and eliminated the ability to carry NOLs back to prior tax years.  For NOLs arising in tax years beginning before 2021, the CARES Act allows taxpayers to carryback 100% of NOLs to the prior five tax years, effectively […]