Business groups, housing advocates and farmers weigh in as taxes omnibus advances
April 29, 2026 | 2026 Legislature MN, Minnesota
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After the committee adopted the DE amendment to Senate File 5052, a wide set of stakeholders offered testimony that highlighted areas of support and concern.
Business and conformity: Several business groups told the committee they favor conformity to specific federal provisions to reduce compliance costs. Gino Fregnito of the Minnesota Society of CPAs said a growing state nonconformity schedule "increases cost and administrative burden for all." Brian Cook of the Minnesota Chamber called for a broader conformity package including section 179 expensing and immediate R&D (research and experimentation) expensing to help competitiveness. John Beshe of the NFIB urged conformity to 100% bonus depreciation and immediate R&E expensing to improve small‑business cash flow.
Housing and local distribution: Courtney Shoff of the Minnesota Housing Partnership described the state housing tax credit program as oversubscribed—308 contributions to 278 projects—and asked the committee to consider a geographic distribution approach tied to population rather than a strict 50/50 split so Greater Minnesota projects are more competitive.
Property relief and resorts: Multiple witnesses supported the DE's property‑tax relief elements. Paul Egan (Minnesota Realtors) and Patty Naumann (Metro Cities) backed a one‑time 12% homestead credit increase as targeted relief. Resort owners and trade representatives described steep local tax increases and urged the resort tier changes, warning that several local resorts had sold for private development under tax pressures.
Agriculture: Farm groups emphasized the beginning farmer tax credit. Stu Lohrey (Minnesota Farmers Union) and Hunter Peterson (Farm Bureau) urged lifting the cap on the beginning farmer credit to help farm succession and keep rural communities viable.
What wasn't decided: Stakeholders urged additional conformity and distribution refinements, but committee action beyond adoption of the DE was deferred to the scheduled markup and amendment process. Several witnesses asked the committee to consider specific additions that were not included in the DE; no immediate statutory changes were enacted during this hearing.
Next steps: The committee will consider member amendments and take additional action at markup the following day.
Business and conformity: Several business groups told the committee they favor conformity to specific federal provisions to reduce compliance costs. Gino Fregnito of the Minnesota Society of CPAs said a growing state nonconformity schedule "increases cost and administrative burden for all." Brian Cook of the Minnesota Chamber called for a broader conformity package including section 179 expensing and immediate R&D (research and experimentation) expensing to help competitiveness. John Beshe of the NFIB urged conformity to 100% bonus depreciation and immediate R&E expensing to improve small‑business cash flow.
Housing and local distribution: Courtney Shoff of the Minnesota Housing Partnership described the state housing tax credit program as oversubscribed—308 contributions to 278 projects—and asked the committee to consider a geographic distribution approach tied to population rather than a strict 50/50 split so Greater Minnesota projects are more competitive.
Property relief and resorts: Multiple witnesses supported the DE's property‑tax relief elements. Paul Egan (Minnesota Realtors) and Patty Naumann (Metro Cities) backed a one‑time 12% homestead credit increase as targeted relief. Resort owners and trade representatives described steep local tax increases and urged the resort tier changes, warning that several local resorts had sold for private development under tax pressures.
Agriculture: Farm groups emphasized the beginning farmer tax credit. Stu Lohrey (Minnesota Farmers Union) and Hunter Peterson (Farm Bureau) urged lifting the cap on the beginning farmer credit to help farm succession and keep rural communities viable.
What wasn't decided: Stakeholders urged additional conformity and distribution refinements, but committee action beyond adoption of the DE was deferred to the scheduled markup and amendment process. Several witnesses asked the committee to consider specific additions that were not included in the DE; no immediate statutory changes were enacted during this hearing.
Next steps: The committee will consider member amendments and take additional action at markup the following day.
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