This bill amends various sections of the Minnesota Statutes related to corporate franchise and unitary taxation, specifically addressing the treatment of certain foreign corporations. It introduces new provisions that require certain foreign corporations to be treated as unitary with a shareholder, particularly focusing on global intangible low-taxed income and Subpart F income. The bill adds several subdivisions to sections 290.0132, 290.0134, and 290.17, which outline the definitions and tax implications for global intangible low-taxed income and Subpart F income, effective for taxable years beginning after December 31, 2024. Additionally, it establishes guidelines for controlled foreign corporations, including the conditions under which they are deemed domestic corporations and the requirements for a worldwide election regarding income apportionment.

Furthermore, the bill modifies section 290.21 by clarifying the treatment of controlled foreign corporations not treated as unitary, specifying that income included under section 951 of the Internal Revenue Code is considered dividend income. It also repeals subdivision 10 of section 290.21, which previously classified global intangible low-taxed income as dividend income. The effective date for all these changes is set for taxable years beginning after December 31, 2024.

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