SC Minnesota News

In a March opinion column in the Waseca County News, contributors outlined the importance of investing in Minnesota's future, including family-owned farms and small businesses. 

The column's contributors included Dough Loon, president of the MN Chamber of Commerce, St. Paul; Tamara Nelson, executive director of AgriGrowth in St. Paul; John Hausladen, president and CEO of Brooklyn Center's Minnesota Trucking Association; and Kevin Paap, president of the Minnesota Farm Bureau. All of the contributors are members of the Invest in Minnesota coalition.

"Business owners invest in Minnesota’s future every day," stated the column. "They invest in their employees and their communities. They invest in their business needs — equipment, workforce — to grow, many times before company profit is a guarantee."

The writers said that these investments made by Minnesota's owners pave the way for the state's small businesses to grow and generate opportunities, as well as allow family-run farms to stay in operation. 

"All of this helps Minnesota compete on a global stage to grow Minnesota’s economy and retain and create jobs," the column states.

The contributors to the column said they were calling on Minnesota's legislators to share that commitment to investing in the state's future, and stated that lawmakers should "align Minnesota's income tax with the federal rules to encourage greater business investment in Minnesota."

According to the column, federal tax code's section 179 determines when a business can deduct the cost of purchasing equipment. After a major federal tax reform was conducted in 2017, the tax base was broadened by removing a large quantity of deductions and allowing more business expenses to "encourage investment and boost economic growth."

The writers said that the State of Minnesota did not adopt the expensing provisions outlined in Section 179. 

"As a result, Minnesota only allows for a fraction of investments to be immediately expenses, thus putting local small businesses and farmers at a disadvantage," said the column. "On top of that, Minnesota made some of the business tax changes retroactive, hitting many businesses and farmers with unexpected tax bills. The cumulative impact is extended debt and less money to invest in operations."

The column explained that the tax increases came right as the state was forecasting a budget surplus of greater than $1 billion, while many family farms and small businesses are reeling from poor harvest seasons and tariff repercussions. The writers said that adopting Section 179 would help farmers save on equipment costs, boost productivity in small businesses and make the state more competitive by encouraging investment. 

"Let's fix this. Let's invest in Minnesota's future," said the column. "Legislators have the opportunity this session to join the majority of other states that align with federal Section 179 provisions — a measure that had bipartisan support at the Legislature last year. As members of the Invest in Minnesota coalition, we stand with family farms and small businesses who want nothing more than to invest in the future of their businesses and employees."