On March 20, 2025, the IRS updated guidance for the Employee Retention Credit (ERC) due to delays in approving the ERC.

If you did not deduct wages due to claiming the refundable payroll tax credit on your federal return, you may include the amount of disallowed wages on your Minnesota return.  

You are eligible for the temporary subtraction if you included wage expense in gross income related to the calculation of ERC and did not already receive a subtraction in Minnesota.

For more information on the updated guidance:

• Visit our new Employee Retention Credit webpage
• Refer to the updated forms and instructions

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