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 their shareholders. 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 from taxable income for shareholders of controlled foreign corporations. Additionally, the bill establishes that controlled foreign corporations will be treated as domestic corporations under specific conditions, and it outlines the process for taxpayers to elect a worldwide approach to determining their apportioned shares of net business income.

The bill also includes a repeal of a previous statute regarding global intangible low-taxed income, which classified such amounts as dividend income. The effective date for all new provisions is set for taxable years beginning after December 31, 2024. Overall, the bill aims to clarify and adjust the tax treatment of foreign corporations and their shareholders in Minnesota, ensuring compliance with federal tax regulations while providing specific guidelines for taxation and reporting.

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