This bill amends Minnesota Statutes to modify the expiration date of the pass-through entity tax, extending it for taxable years beginning after December 31, 2027. Specifically, it revises section 289A.08, subdivision 7a, to clarify the definitions of "income," "qualifying entity," and "qualifying owner," and outlines the conditions under which a qualifying entity may elect to file a return and pay the pass-through entity tax. The bill also stipulates that the tax liability for qualifying owners is based on their income multiplied by the highest individual tax rate, and it establishes guidelines for credits and deductions related to this tax.

Additionally, the bill amends section 290.06, subdivision 23a, to allow a credit against the pass-through entity tax for taxes paid to another state, which can only be claimed by qualifying owners. The language regarding the expiration of this subdivision has also been updated to align with the new expiration date of December 31, 2027. The effective date for these changes is set for the day following final enactment.

Statutes affected:
Introduction: 289A.08, 290.06