These Minnesota businesses support Trump’s big tax law

Chambers of commerce and trade organizations in Minnesota and across the country were not shy about their love for the sprawling tax bill that President Donald Trump signed into law last week.

Individual companies were much quieter, even though many belong to and even help lead the groups speaking out for it. Controversy about the measure’s funding — including deep cuts to Medicaid and an increase of $3.3 trillion to the federal debt in the next decade — likely made some companies cautious of turning off customers and clients.

Vocal or not, a lot of businesses do stand to gain from the 2017 tax cuts becoming permanent and the bill’s other new tax benefits.

“By maintaining a competitive corporate tax rate and making key pro-growth domestic and international tax provisions permanent, this landmark legislation will help fuel U.S. investment, innovation and economic growth for years to come,” proclaimed the Business Roundtable, which sports a board of directors including Land O’Lakes CEO Beth Ford and members including the CEOs of fellow Minnesota companies Best Buy, C.H. Robinson and U.S. Bancorp.

One of the few companies in the state and nation to publicly and independently back the bill was 3M, per a list of endorsements the White House published. Oil companies such as Chevron, airlines ― including Delta, which has a major hub at Minneapolis-St. Paul International Airport ― and telecom firms such as AT&T were also in favor of the law.

In a statement posted on the White House website, Maplewood-based 3M “specifically applauds the permanent extension of current rates for foreign-derived intangible income.” That tax policy rewards companies for keeping intellectual property (IP) like patents in the U.S. when making money on that IP overseas.

“This extension is crucial for maintaining a competitive edge in global markets and fostering innovation within the U.S.,” 3M‘s statement continued.

There’s blowback risk for corporations publicly participating in politics (see Minnesota examples of Target’s sales struggles after diversity policy changes and MyPillow’s financial woes stemming from its founder’s 2020 presidential election fraud claims). So most companies were content to let their lobbyists work behind the scenes or let trade groups handle the PR around the bill as it came together and passed with razor-thin margins.

For example, the Association of Value Airlines, which includes Minneapolis-based Sun Country Airlines, joined other carriers and associations praising the $12.5 billion the bill set aside for air-traffic control upgrades.

As a major federal contractor, 3M is keen to remain in the president’s good graces, given Trump’s threat of punishing detractors. The company, which holds more than 100,000 patents and does a majority of its business outside the U.S., also benefits tremendously from the lower foreign-derived intangible income tax. That likely makes it a worthy tradeoff if critics of the bill target the company for its support.

Minneapolis-based salon franchisers Great Clips and Regis Corp. were also on the list of businesses and trade groups endorsing the bill, as was the General Aviation Manufacturers Association, which includes Duluth-based Cirrus Aircraft as a member.

3M and Eden Prairie-based Winnebago Industries also signed a letter supporting the One Big Beautiful Bill Act alongside hundreds of trade groups and some other individual businesses. The National Association of Manufacturers led the letter, which highlighted immediate research and development (R&D) and capital expensing as “pro-growth policies.”

Those policies mean companies can reduce their taxes when spending money on research, new factories and equipment.

The research write-off “will spur even greater medtech R&D from our fast-moving innovators,” said Scott Whitaker, president and CEO of medtech trade group AdvaMed, in a statement. Executives from big-in-Minnesota medtech companies such as Medtronic, Boston Scientific and Abbott Laboratories serve on AdvaMed’s board of directors.

Whitaker also said the bill’s “steady and competitive corporate tax rate” provides companies certainty and “allows America’s medtech industry to maintain its global leadership position going forward.”

The National Retail Federation, which counts Minneapolis-based Target among its board of directors, also applauded the continued 21% corporate tax rate and the extended pass-through deduction. That 20% deduction applies to certain types of businesses, including sole proprietorships and many community banks, that are subject to individual income taxes instead of the corporate tax.

“Retailers are deeply invested in policies that fuel consumer spending, support small businesses and create the certainty needed for long-term investment,” the group’s top lobbyist, David French, wrote in a letter to U.S. House leadership last week. “This legislation delivers on several key priorities for pro-growth tax policy.”

Several Minnesota trade groups also backed the bill, including the Minnesota Chamber of Commerce, the Minnesota Bankers Association, Hospitality Minnesota, Greater Mankato Growth and the Minnesota State Cattlemen’s Association. So did dozens of national groups representing Minnesota agriculture, such as the American Sugarbeet Growers Association, the National Turkey Federation and the American Farm Bureau Federation.

“This legislation strengthens the farm safety net, ensures essential investments in conservation and includes tax provisions that offer much-needed relief to family farms and agribusinesses,” wrote the Agricultural Retailers Association, which counts Minnesota-based CHS and Land O’Lakes-owned WinField United among its members.

The National Farmers Union gave the final bill a split decision and urged more work on the still-pending farm bill.

“The bill strengthens the farm safety net, supports biofuels and conservation and extends key tax incentives that help keep family farm operations viable,” the group said in a statement. “However, these gains are paired with harmful tradeoffs. Cuts to SNAP [food stamps] divide the farm bill coalition, and reductions in Medicaid will have harmful effects on millions of Americans.”