Minn. Bill Seeks Tax Credit For Liquor Businesses Amid Virus

Minnesota would allow a tax credit for brewers, liquor retailers and wholesalers who have had to temporarily close or impose safety measures because of the novel coronavirus pandemic under a bill introduced Monday in the state Senate.

S.B. 2064, introduced by Sen. Karla Bigham, D-Cottage Grove, would allow brewers to take a tax credit for the cost of products that had to be disposed because of pandemic shutdowns and the cost of products purchased back from wholesalers. The credit could also be claimed by a retailer for the cost of product returned to a wholesaler or that had to be disposed, the bill said. Wholesalers could claim a credit for the cost of product purchased back from a retailer, returned to a manufacturer or thrown out because of pandemic closures, according to the bill. 

Brewers, liquor retailers and wholesalers could also claim a credit for the cost of purchasing personal protective equipment, including face masks, shields and furniture to enhance physical distancing.

If enacted, the bill would take retroactive effect for tax years 2020 and 2021.

--Editing by Neil Cohen.

For a reprint of this article, please contact reprints@law360.com.