H.F. 501, filed Thursday, would conform to the federal code for excluding forgiven Paycheck Protection Program loans granted by the Coronavirus Aid, Relief and Economic Security Act
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The election would be binding for four taxable years unless revoked by a stakeholder who holds more than 50% ownership interest in the qualifying entity. Under the bill, income of partners, members or shareholders of an entity that makes the C-option corporation election would be a subtraction, but could not exceed their portion of the qualifying entity's net income.
The legislation was referred to the House Taxes Committee. The committee's chair, Rep. Paul Marquart, DFL-Dilworth, introduced the bill.
--Editing by Vincent Sherry.
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