MN HF4642

Individual taxpayers may elect to receive an income tax holiday for one taxable year, choosing either tax year 2021 or tax year 2022.

For the elected tax year, a taxpayer's liability for Minnesota income taxes is reduced to $0.

The commissioner of revenue must refund all estimated income tax payments and withheld taxes for the tax year covered by the holiday.

The provision does not apply to taxpayers with negative tax liability for the eligible tax years.

The bill appropriates necessary funds from the general fund to the commissioner of revenue to pay required refunds.