Bill > HF2045

This bill modifies Minnesota's estate tax laws by increasing the general subtraction amount and adjusting the combined cap on subtractions for qualified small business and farm property. Specifically, the bill raises the estate tax filing threshold from previous tiered amounts to a flat $6,000,000, meaning estates valued under this amount will not be required to file a Minnesota estate tax return. Additionally, the bill establishes a new subtraction mechanism that allows a $6,000,000 general subtraction, plus a combined subtraction of up to $5,000,000 for qualified small business and farm property. These changes effectively increase the amount of an estate that can be transferred without incurring Minnesota estate tax, providing more favorable tax treatment for estate transfers. The modifications will apply to estates of decedents dying after June 30, 2025, giving potential estate planners and beneficiaries time to understand and adapt to the new regulations. By raising these thresholds, the bill aims to provide tax relief for larger estates and potentially make Minnesota's estate tax structure more competitive with other states.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2045&ssn=0&y=2025