Bill > HF1480

This bill expands Minnesota's corporate franchise and unitary taxation rules to more comprehensively include foreign corporations and entities in tax calculations. Specifically, the bill modifies how foreign corporations are treated in unitary business groups by requiring their worldwide income to be included in tax calculations and apportionment factors. The bill introduces new tax treatment for two international tax concepts: global intangible low-taxed income (GILTI) and Subpart F income, allowing these types of income to be subtracted from gross income for tax purposes. The legislation provides the commissioner of revenue additional flexibility in determining net income for foreign corporations, including the ability to require profit and loss statements, financial reports, and other documentation when federal tax information is not readily administrable. The bill also removes previous subdivisions in the tax code that separately treated controlled foreign corporations and global intangible low-taxed income. These changes will apply to taxable years beginning after December 31, 2025, giving businesses and tax authorities time to prepare for the new regulations. The overall intent appears to be creating a more comprehensive and uniform approach to taxing multinational corporate entities operating in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1480&ssn=0&y=2025