This bill amends Minnesota tax law regarding the apportionment of trade or business income, specifically by incorporating foreign sales factors into the apportionment percentage for certain taxpayers. It modifies Minnesota Statutes 2024, section 290.191, subdivision 2, to clarify that the general apportionment formula does not apply to trades or businesses that are required to use a different formula or have received permission to use an alternative method. Additionally, it introduces a new subdivision (Subd. 13) that defines terms related to global intangible low-taxed income and mandates that a qualified manufacturer's foreign pro rata sales be included in the sales factor for apportionment purposes.

Furthermore, the bill amends Minnesota Statutes 2024, section 290.21, subdivision 10, to specify that amounts included in taxable income under section 951A of the Internal Revenue Code are considered 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.

Statutes affected:
Introduction: 290.191, 290.21