This bill amends Minnesota Statutes to modify the apportionment of trade or business income for certain taxpayers, specifically addressing the inclusion of foreign sales factors. It introduces a new subdivision to section 290.191, which defines terms related to global intangible low-taxed income and establishes that a qualified manufacturer's foreign pro rata sales must be included in the sales factor for determining their apportionment percentage. The bill also clarifies that the general apportionment formula does not apply to trades or businesses that are required to use a different formula or that include foreign pro rata sales, ensuring that these factors are considered in the apportionment process.

Additionally, the bill specifies that any amounts included in taxable income under section 951A of the Internal Revenue Code are classified as dividend income, with an exception for qualified manufacturers as defined in the new subdivision. The effective date for these changes is set for taxable years beginning after December 31, 2025. Overall, the bill aims to refine the taxation framework for businesses with international operations, ensuring that foreign sales are appropriately accounted for in income apportionment.

Statutes affected:
Introduction: 290.191, 290.21