Don’t stick a fork in Section 179 conformity just yet
Minnesota House tax committee chair Paul Marquart hasn’t given up on getting full Section 179 conformity across the finish line this year.
In fact, the Democrat from District 4B puts the odds at better than 50/50 despite the latest effort falling short with the adjournment of Tuesday’s special session.
“I think there’s a shot we can do that. I think everyone, for the most part, still wants a bonding bill. I think everyone, for the most part, wants to get Section 179 done.”
Marquart expects another special session in August because Governor Walz wants to extend his emergency powers.
He tells Brownfield that will be the last chance for Section 179 this year.
“It’s just getting too late for everything, so it’s going to be do-or-die in August.”
Section 179 is part of the IRS code used to depreciate out the cost of machinery and equipment. The federal government currently allows farmers and small business owners to expense 100 percent of that cost upon operation. In Minnesota, 80 percent of that deduction has to be added back to the cost.