Bill > SF2056

This bill modifies the definition of income for property tax refund purposes in Minnesota by making a specific change to how net operating loss (NOL) carryforwards are treated. Currently, federal adjusted gross income cannot be reduced by a net operating loss carryback or carryforward. The bill removes the prohibition on reducing income by a net operating loss carryforward and specifically adds a provision that allows individuals to subtract the amount of a net operating loss carryforward allowed under section 172(b)(1)(A)(ii)(II) of the Internal Revenue Code from their income. This means that taxpayers who have experienced business losses in previous years can now potentially reduce their taxable income for property tax refund calculations by the amount of their net operating loss carryforward. The change will be effective for property tax claims based on taxes payable in 2025 and subsequent years, giving taxpayers with business losses an additional method to potentially reduce their taxable income when calculating property tax refunds. The modification aims to provide more flexibility in income calculation and potentially offer tax relief for individuals with business losses.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2056&ssn=0&y=2025