ST. PAUL – House Republicans have indicated tax relief would be a cornerstone of the 2017 session and it took them less than three days to start following through on their mission.
The House on Thursday passed $21.7 million in immediate tax relief for Minnesotans by bringing the state’s tax code into compliance with federal provisions. This action, which passed 130-0 was necessary by Jan. 11 in order for tax software programs to be updated in time for qualifying Minnesotans to take advantage of available reductions this tax season.
“People in District 5A sent me to St. Paul to deliver tax relief and I am working to follow through for them,” said Rep. Matt Bliss, R-Pennington. “We took a nice first step by passing this bill right off the bat, but this is only the very beginning of what we are looking to accomplish. Committees just started meeting in the House and we plan to keep the pedal down and bring forward a whole lot more proposals to give Minnesota taxpayers a break.”
Key provisions of the bill (H.F. 2) include:
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Providing deductions for higher education expenses
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Providing deductions for teacher classroom expenses up to $250
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Excluding compensation from taxable income for those who were wrongfully incarcerated
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Eliminating the need for two sets of depreciation schedules for those who purchase work equipment
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Providing an itemized deduction for mortgage insurance premiums
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Excluding from gross income loan forgiveness on home foreclosures
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Allowing the tax paid on high-cost employer health care coverage to be claimed as an itemized deduction
Republicans also Thursday moved to fast-track a vote on the 2017 Health Care Emergency Aid and Access bill (H.F. 2), which would provide premium relief, extend access to doctors for continuity of care, and begin to reform the individual market. Democrats blocked the measure, despite agreeing days earlier to suspend the rules in order to expedite premium relief for Minnesotans.
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