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 what constitutes a "domestic corporation," which now includes entities incorporated in tax havens and those with significant business activity in such jurisdictions. The bill also introduces a new definition for "tax haven," outlining specific characteristics that qualify a foreign jurisdiction as such. Furthermore, it establishes that certain types of income, including global intangible low-taxed income and Subpart F income, will be treated as subtractions in taxable income calculations.

Additionally, the bill modifies the unitary business principle, clarifying how income from foreign corporations is treated in relation to domestic entities. It specifies that while foreign entities may be part of a unitary business, their income will not be included in the net income or apportionment factors unless they meet certain criteria. The bill also repeals previous provisions regarding controlled foreign corporations and global intangible low-taxed income, which classified these as dividend income. All changes are set to take effect for taxable years beginning after December 31, 2025.

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