Small businesses to see relief with revival of pass-through tax election

Small businesses to see relief with revival of pass-through tax election

HERMANTOWN — Small businesses across the state will see relief after lawmakers voted to restore and extend Minnesota’s pass-through entity tax election through 2027. The PTE tax option was originally enacted in 2021. When a small business declares itself a “pass-through entity,” it pays no income tax as a business. All profits and losses flow to the personal income tax returns of the owners or shareholders to be taxed once at individual rates. A…