This bill amends various sections of the Minnesota Statutes related to corporate franchise and unitary taxation, specifically expanding the definition of a unitary group to include foreign corporations. Key changes include the addition of new definitions and provisions for calculating "net income" for foreign corporations and other foreign entities that are part of a unitary business. The bill introduces new subdivisions that allow for the subtraction of global intangible low-taxed income and subpart F income from gross income, aligning state tax law with federal tax provisions under the Internal Revenue Code. These changes are set to take effect for taxable years beginning after December 31, 2025.

Additionally, the bill repeals certain subdivisions of Minnesota Statutes 2024, section 290.21, which previously classified controlled foreign corporations and global intangible low-taxed income as dividend income. The amendments clarify that the net income and apportionment factors of foreign corporations and entities included in a unitary business must be considered in determining net income for tax purposes. Overall, the bill aims to modernize Minnesota's tax code in relation to international business operations and ensure compliance with federal tax standards.

Statutes affected:
Introduction: 290.01, 290.0132, 290.0134, 290.17, 290.21