Bill > HF1643

This bill modifies the definition of income for purposes of the property tax refund in Minnesota by making a specific change to how net operating losses are treated. Currently, net operating loss carrybacks or carryforwards are not allowed to reduce federal adjusted gross income when calculating property tax refunds. The bill removes the prohibition on net operating loss carryforwards, specifically allowing the amount of a net operating loss carryforward under section 172(b)(1)(A)(ii)(II) of the Internal Revenue Code to be excluded from income. This means that taxpayers will now be able to reduce their income for property tax refund calculations by including net operating loss carryforwards, which could potentially increase their eligibility for or the amount of their property tax refund. The change will apply to property tax claims based on property taxes payable in 2025 and subsequent years, providing a new tax benefit for eligible Minnesota taxpayers by allowing them to account for business losses when calculating their income for property tax refund purposes.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1643&ssn=0&y=2025