What You Need to Know Continued WORKFORCE Continued investment in higher education remains a priority of the Chamber. This session, the Chamber advocated once again for state investment in the University of Minnesota Rochester's health sciences plan , which would support expansion and the growth of new programs, helping strengthen the healthcare workforce pipeline. Unfortunately, funding for UMR was not included in the higher education omnibus bill for the 2026 session. HOUSING In the housing sector, the Chamber supported the bipartisan State Housing Tax Credit following two consecutive years that saw the full $9.9M in available tax credits utilized. This program allows individuals and businesses to make annual financial contributions toward affordable housing development in exchange for an 85% state tax credit. GENERAL BUSINESS A significant win this session was the two-year extension of the Pass-Through Entity Tax , retroactive to January 1, 2026. This provides federal SALT deduction relief for Minnesota pass-through businesses at no cost to state taxpayers, benefiting roughly 66,000 Minnesota residents. As Minnesota works toward its 2040 goal of 100% carbon free electricity, the support of removing the nuclear moratorium was a priority of the Chamber. While not repealed, the state did allocate $500,000 this session to study the feasibility of building new nuclear plants and the potential repeal of the moratorium. If repealed, nuclear power would enhance grid reliability, achieve sustainability goals, and strengthen the baseload power supply. CONTINUED ADVOCACY AND ENGAGEMENT Although the session has concluded, the Chamber continues to engage with our state delegation, strengthening relationships with legislators while advocating for the priorities of our members. We are thankful for the continued willingness of our local delegation to discuss the impacts of policy on the business community. We also extend our sincere thanks to Senator Carla Nelson and Senator Steve Drazkowski as they prepare to retire at the end of 2026. We appreciate their years of public service to our region and state.
Sen. Liz Boldon DISTRICT 25
As you reflect on the 2026 legislative session, what legislation will have a significant impact on the Rochester area business community? This year, we made much- needed investments in our state’s infrastructure. Of
the $1.2 billion contained in the bonding bill passed this session, over $23 million will go directly towards local projects in the Rochester area and Olmsted County. Improved roads and bridges, expanded housing opportunities, revitalized assets at Rochester Community and Technical College, and other projects will go a long way in growing our local economy, creating jobs, and making our community prime for investments. On top of those direct appropriations, we approved $6 million for three programs that support small businesses in Greater Minnesota – $2 million for the Greater MN Business Development Public Infrastructure Grant Program, $2 million for the Innovative Business Development Grant Program, and $2 million for the Transportation Economic Development Infrastructure program. By investing in our local infrastructure, Rochester will continue to be a hub for innovation and a place where families and small businesses thrive. What are your takeaways from the 2026 session? While we were able to pass food security support, hospital stabilization funding, significant property tax relief, and local infrastructure investments, there was still too much left on the table. As wealth inequality worsens in our country, working class families are struggling. Americans have less disposable income to spend, and we’re seeing our nationwide economy become stagnant and top-heavy because of it. When we invest in working families, we’re able to build our economy from the ground up and grow the middle class – providing a stable foundation for small businesses to thrive. That’s why I’ll continue to push hard for policies like universal childcare in our state. Childcare has become unaffordable, as costs rise and the federal government cuts the vital programs that our families rely on. We know that we all do better when we all do better, which is why making sure Minnesotans’ needs are met will create significant returns on our investments.
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