The bill proposes significant modifications to Minnesota's tax provisions, affecting individual income taxes, corporate franchise taxes, and sales and use taxes. Key changes include amending eligibility criteria for tax credits, allowing taxpayers to claim credits based on production costs over any consecutive 12-month period rather than a taxable year. It introduces a pass-through entity tax for qualifying entities, enabling them to file returns based on the collective tax liability of their owners, thereby streamlining tax obligations for partnerships and S corporations. Additionally, the bill makes technical adjustments to existing tax laws, updates enforcement and audit provisions, and establishes retroactive effective dates for many changes, impacting taxable years beginning after December 31, 2022, or 2025.

Further amendments focus on sustainable aviation fuel facilities, providing tax exemptions for materials used in their construction and updating the refund application process for owners or developers. The bill also enhances regulations for tax preparers, introducing new prohibitions and penalties for violations, with an effective date for these provisions set for taxable years beginning after December 31, 2024. It modifies property classification rates and filing requirements for qualified heirs, aiming to improve accountability in tax preparation services and streamline property tax classifications. Additionally, the bill extends the timeline for filing tax returns related to decedents' estates and the expiration date for the film production credit, with various effective dates set for the day following final enactment or retroactively.

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