Bill > SF3401

This bill expands Minnesota's tax laws to more comprehensively include foreign corporations in unitary business groups and makes several related tax code modifications. Specifically, the bill changes how foreign corporations are treated for tax purposes by including their worldwide income in apportionment calculations and allowing certain international income types to be subtracted from gross income. Key provisions include adding global intangible low-taxed income (GILTI) and Subpart F income as subtraction items for tax calculations, which means these types of international corporate income will not be fully taxed. The bill also gives the state tax commissioner more flexibility in determining net income for foreign corporations, such as allowing the use of profit and loss statements or SEC filings if federal tax information is not readily available. Additionally, the bill repeals existing provisions about controlled foreign corporations and GILTI, effectively updating the state's approach to taxing international business income. These changes will apply to tax years beginning after December 31, 2025, giving businesses and tax authorities time to prepare for the new rules. The overall intent appears to be modernizing Minnesota's corporate tax code to better address the complexities of global business operations.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3401&ssn=0&y=2025