This bill proposes significant modifications to various tax provisions in Minnesota, including individual income taxes, corporate franchise taxes, and sales and use taxes. Key changes involve amending eligibility criteria for tax credits related to production costs, allowing taxpayers to claim credits based on any consecutive 12-month period rather than a taxable year. The introduction of a pass-through entity tax for qualifying entities enables them to file a return and pay taxes based on the collective tax liability of their owners. Additionally, the bill updates definitions and provisions related to net income for partnerships and S corporations, and establishes new rules for the treatment of Social Security benefits and qualified retirement benefits.

The bill also includes provisions for sustainable aviation fuel facilities, offering tax exemptions on materials and supplies used in their construction, and revises revenue deposit requirements for various tax revenues. It enhances regulations surrounding tax preparers, introducing new requirements for confidentiality and client communication, while also modifying property classification rates for homestead properties. Furthermore, the bill adjusts timelines for filing returns after a decedent's death and extends the expiration date for the film production credit. Effective dates for these changes vary, with some provisions being retroactive and others set for future taxable years. Overall, the bill aims to streamline tax processes, enhance compliance, and strengthen consumer protections in tax preparation services.

Statutes affected:
Introduction: 116U.27, 289A.08, 289A.31, 290.01, 290.0132, 290.0134, 290.0693, 290.0695, 297A.71, 297A.75, 297A.94, 297A.99, 297A.995, 270C.445, 273.13, 289A.12, 297E.06, 297I.20