This bill amends various sections of the Minnesota Statutes related to corporate franchise and unitary taxation, specifically expanding the definition of the unitary group to include foreign corporations. Key changes include the addition of new definitions and provisions regarding the net income of foreign corporations, which will now be determined based on federal taxable income, with the possibility of using profit and loss statements if necessary for administration. The bill also introduces new subdivisions that allow for subtractions related to global intangible low-taxed income and subpart F income, both of which are included in gross income under specific sections of the Internal Revenue Code.

Additionally, the bill repeals certain subdivisions of Minnesota Statutes that previously classified controlled foreign corporations and global intangible low-taxed income as dividend income. The effective date for these changes is set for taxable years beginning after December 31, 2025. Overall, the bill aims to modernize and clarify the taxation framework for corporations operating in Minnesota, particularly those with international operations.

Statutes affected:
Introduction: 290.01, 290.0132, 290.0134, 290.17, 290.21