This bill amends Minnesota Statutes 2024, section 290.01, subdivision 31, to align state tax law with recent federal changes regarding bonus depreciation. Specifically, it incorporates the provisions of section 70301 of Public Law 119-21, which allows for full expensing of certain business property, into the definition of the "Internal Revenue Code" as it applies to Minnesota law. This change ensures that Minnesota taxpayers can benefit from the same depreciation rules that are available at the federal level.

Additionally, the bill includes an effective date provision stating that the amendments will take effect the day after final enactment, with the federal changes being applied retroactively to the same date they became effective for federal purposes. This retroactive application aims to provide clarity and consistency for taxpayers in Minnesota regarding their income and corporate franchise taxes in light of the updated federal tax regulations.

Statutes affected:
Introduction: 290.01