This bill amends Minnesota Statutes 2024, section 290.06, subdivision 1, to introduce a contingent increase in the corporate franchise tax rate for taxable years beginning after December 31, 2024. The new language specifies that corporations will apply either a greater tax rate or a rate calculated based on a percentage decrease in the corporate franchise tax rate imposed under federal law. Specifically, the commissioner is tasked with calculating this percentage decrease as of March 23, 2025, and determining a new tax rate that equals 9.8 percent, adjusted by the calculated percentage decrease.

Additionally, the bill outlines that the effective date for these changes will be for taxable years starting after December 31, 2024. This legislative change aims to ensure that Minnesota's corporate tax rate remains responsive to federal tax adjustments, thereby potentially impacting corporate tax liabilities in the state.

Statutes affected:
Introduction: 290.06