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 resulting from recent federal tax legislation. Specifically, the commissioner is tasked with calculating the percentage decrease in the corporate franchise tax rate as imposed under federal law, which will then inform the new state tax rate.

Additionally, the bill outlines that the new tax rate will be set at 9.8 percent, adjusted by the percentage decrease calculated from the federal legislation, and rounded to the nearest twentieth of a percent. This adjustment aims to ensure that Minnesota's corporate tax rate remains competitive in light of changes at the federal level. The effective date for these changes is established for taxable years starting after December 31, 2024.

Statutes affected:
Introduction: 290.06