The bill mandates a study on corporate tax base erosion in Minnesota, requiring the commissioner of revenue to submit a comprehensive report by January 1, 2025. This report will address the extent of corporate tax base erosion, legislative options for mitigating it—including the potential adoption of worldwide combined reporting—and the associated litigation risks. The report must include detailed discussions on various aspects of corporate structures that contribute to tax base erosion, reliable analyses for estimating revenue impacts, and the effectiveness of current tax treatments under federal law.

Additionally, the report will explore alternative modifications to the corporate franchise tax to combat tax base erosion, assess the administrative implications of implementing worldwide combined reporting, and provide recommendations for necessary changes to current law. It will also evaluate the risk of litigation related to these options and suggest strategies to mitigate such risks. The effective date of this section is set for the day following its final enactment.