This bill amends various sections of the Minnesota Statutes related to corporate franchise taxation, specifically addressing the treatment of foreign corporations as unitary businesses. Key changes include the addition of definitions and criteria for identifying "tax havens," which are foreign jurisdictions with tax regimes that hinder effective information exchange and transparency. The bill introduces new subdivisions to define "global intangible low-taxed income" and "Subpart F income," both of which will be treated as subtractions in taxable income calculations. Additionally, the bill modifies the unitary business principle to clarify how income from foreign corporations is treated in apportionment calculations, ensuring that certain foreign entities are included in determining net income and apportionment factors.

The bill also repeals specific provisions regarding controlled foreign corporations and global intangible low-taxed income that previously classified these amounts as dividend income. The effective date for these changes is set for taxable years beginning after December 31, 2025. Overall, the bill aims to enhance the state's ability to tax foreign corporations more effectively and ensure that income derived from tax havens is appropriately accounted for in Minnesota's tax system.

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