The 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. This calculation will be conducted by the commissioner, who will determine the applicable tax rate based on the percentage decrease in the federal rate as of March 23, 2025.

Additionally, the bill outlines that the new tax rate will be set at 9.8 percent, adjusted by the percentage decrease calculated by the commissioner, and rounded to the nearest twentieth of a percent. The effective date for these changes is specified as taxable years beginning after December 31, 2024. This amendment aims to ensure that Minnesota's corporate tax structure remains responsive to changes in federal tax legislation.

Statutes affected:
Introduction: 290.06