This 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 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 enables qualifying entities to file returns based on the collective tax liability of their owners. Additionally, the bill updates definitions related to net income to align with federal tax regulations and modifies the treatment of Social Security and qualified retirement benefits, establishing phaseout thresholds based on adjusted gross income.

The legislation also addresses tax regulations for sustainable aviation fuel facilities, introducing tax exemptions for materials used in their construction and updating eligibility criteria for tax refunds. It enhances regulations for tax preparers, imposing new requirements for client communication and confidentiality, while establishing penalties for violations. Furthermore, the bill modifies property classification rates and filing timelines for tax returns after a decedent's death, along with extending the expiration date for the film production credit. Effective dates for various provisions are set for immediate enactment or specific future dates, aiming to streamline tax processes and improve compliance for individuals and businesses in Minnesota.

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