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. It specifies that corporations will apply either a new tax rate or a rate calculated based on a percentage decrease in the corporate franchise tax rate as determined by federal legislation. The new language outlines a process for the commissioner to calculate this tax rate, which will be set at 9.8 percent plus an adjustment based on the percentage decrease identified.

Additionally, the bill mandates that the commissioner must assess the percentage decrease in the corporate tax rate imposed under federal law as of March 23, 2025, and use this information to determine the applicable tax rate for Minnesota corporations. The effective date for these changes is established as taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.06