This bill proposes amendments to the corporate franchise tax rates in Minnesota, specifically targeting the rates applied to taxable income and the corporate alternative minimum tax. The current rate of 9.8 percent will be replaced with a tiered structure: for taxable years beginning before January 1, 2025, the rate remains at 9.8 percent; for those beginning after December 31, 2024, and before January 1, 2026, the rate will decrease to 9.3 percent; further reductions will follow, with rates of 9.05 percent for taxable years beginning after December 31, 2025, and 8.8 percent for those beginning after December 31, 2026.

Additionally, the bill modifies the corporate alternative minimum tax by establishing new rates based on Minnesota alternative minimum taxable income. The previous structure is replaced with a new tiered system: 5.5 percent for taxable years beginning after December 31, 2024, and before January 1, 2026; 5.35 percent for those beginning after December 31, 2025, and before January 1, 2027; and 5.2 percent for taxable years beginning after December 31, 2026. Both sections of the bill will take effect for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.06, 290.0921