The status of Section 179 conformity in Minnesota is unknown at this time. Lobbyist Bruce Kleven says there are a few things making an impact including a change in the budget surplus. “Earlier this year, the surplus was $1.5 billion. Since then, about $550 million has been appropriated to the coronavirus response on the state level,” says Kleven. “With the expected contraction in the economy and tax receipts, by the end of the quarter on June 30, there could be a deficit instead of a surplus. That’s changed the financial picture in a hurry.” There was hope earlier on in the session to use some of the extra funds to get Section 179 conformity. “The expected financial hit to the state would have been about $240 million and there was plenty in the surplus to take care of that. Of course, with the coronavirus and expected recession, I’m not sure the prospects of Section 179.”
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