The Minnesota House Tax Committee held a hearing on tax conformity Thursday. Legislation from Representatives Jeanne Poppe and Glen Gruenhagen on Section 179 were both reviewed. Poppe’s bill would eliminate Section 179 expensing. Gruenhagen’s bill would modify expensing. Section 168 bonus depreciation was also discussed. Committee Chairman Paul Marquart said if Minnesota adopts the federal government’s recommendations, it could be costly. Marquart provided solutions and a few examples. “If you were to do a 75 percent add back with a three year recovery, it will be about $90 million in this biennium,” he said. “If you were to do a 60 percent add back and then, recover it after two years that would be about $286 million over the two years.” Lawmakers noted the importance of tax conformity in the hearing.
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