Minnesota Pork CEO says Section 179 conformity “levels playing field”

Minnesota farmers now have access to a tax break that’s been available in nearly every other state.

Earlier this month, the state legislature passed a bill that included full Section 179 conformity that Governor Walz then signed into law.

Minnesota Pork CEO David Preisler tells Brownfield conformance with federal tax law on depreciation and like-kind exchange puts Minnesota on a level playing field with neighboring states.

“We had farms and small businesses that were getting bills in the mail from the Department of Revenue for back taxes from 2018 and 2019 as this thing was getting interpreted within law.”

Prior to full Section 179 conformity, he says Minnesota farmers and business owners essentially had two sets of depreciation schedules.

“You’d get one for your state income tax (and) one for your federal income tax, and we had small businesses and farms in some cases paying more in state income tax than they were in federal income tax because of the way this thing was laid out.”

The Minnesota Legislature finally passed a bonding bill that included Section 179 conformity during the fifth special session of 2020.

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