ST. PAUL - District 22A Rep. Joe Schomacker, R-Luverne, has co-authored a bipartisan bill that would bring Minnesota tax law into conformity with Section 179 of Federal Internal Revenue Code.
The bill HF235 was introduced at a Feb. 7 Minnesota House of Representatives Taxes Committee meeting. Representatives who wrote the bill explained that it introduces tax deductions on machinery and equipment purchases. Federal tax code was amended to include such deductions in 2005, and Minnesota has been out of conformity since then.
HF235 was proposed as an addition to the 2019 Minnesota tax bill.
Among the biggest supporters of HF235 are small business owners and farmers, who would stand to benefit from the deductions allowed by the proposed addition. Schomacker agrees with their assessment.
“Farmers and main street business owners will have more money to spend and grow their business, which will be good news for the local economy,” he said during last week’s meeting.
The Taxes Committee heard testimonies from constituents, then voted unanimously to include HF235 in the 2019 tax bill.
The bill is meant to encourage investment, and Schomacker believes it will.
“This is a provision that will incentivize growth, and that is critical for the people in southwestern Minnesota,” he said.