Navigate Up
Sign In
Last Updated: 1/31/2017

Section 179 Expensing Subtraction

If you had an addition for increased federal section 179 expensing on your Minnesota tax return for 2011 or later, you may subtract 20 percent of that amount from taxable income on your 2016 return.

To claim this subtraction, you must meet both of these requirements:

  • You had deductions on your federal tax return for increased section 179 spending in 2011, 2012, 2013, 2014 or 2015.
  • You added back 80 percent of those deductions on your Minnesota return in that same year.

If you qualify, complete Schedule M1M, Income Tax Additions and Subtractions. Include the schedule when filing your Minnesota tax return (Form M1, Individual Income Tax).

For more information:

Go to Section 179 Expensing Under the Federal and Minnesota Income Tax on the state Legislature’s website.
View the statute, M.S. 290.0132, subd. 14.