This bill amends various sections of the Minnesota Statutes related to corporate franchise and unitary taxation, specifically addressing the treatment of certain foreign corporations as unitary with a shareholder. Key provisions include the introduction of new subdivisions that define "global intangible low-taxed income" and "Subpart F income," both of which are designated as subtractions for tax purposes. These changes apply to shareholders of controlled foreign corporations treated as unitary under specific conditions, and the effective date for these provisions is set for taxable years beginning after December 31, 2024.

Additionally, the bill establishes a framework for a worldwide election that allows taxpayer members of a unitary group to determine their apportioned shares of net business income or loss based on the entire income and apportionment factors of each member, regardless of their incorporation location. The bill also includes provisions for the withdrawal and reinstitution of this election, along with the repeal of a previous subdivision regarding global intangible low-taxed income, which is now redefined under the new amendments. Overall, these changes aim to clarify and streamline the taxation process for corporations operating in Minnesota with international ties.

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