The bill amends Minnesota Statutes 2022, section 290.17, to require worldwide combined reporting for corporate franchise taxation. It introduces a new subdivision (4a) that outlines how the federal taxable income of foreign corporations and other foreign entities should be computed, including the preparation of profit and loss statements in the entity's regular currency, adjustments to conform to U.S. accounting principles, and the conversion of financial statements into the currency of the parent company. The bill also clarifies that income apportioned to Minnesota must be expressed in U.S. dollars.

Additionally, the bill modifies existing language in subdivision 4, emphasizing the unitary business principle and the requirement for combined reporting among entities that are part of a unitary business. It deletes previous provisions regarding the exclusion of foreign entities from net income calculations and the apportionment factors, thereby allowing for a more inclusive approach to determining taxable income. The effective date for these changes is set for taxable years beginning after December 31, 2023.

Statutes affected:
Introduction: 290.17