A bill for an act
relating to taxation; corporate franchise; repealing the corporate alternative
minimum tax and corporate minimum fee; amending Minnesota Statutes 2020,
sections 290.0131, subdivision 5; 290.0133, subdivision 2; 290.0136; 290.0921,
subdivision 8; 290.0922, subdivisions 1, 2; 469.317; repealing Minnesota Statutes
2020, section 290.0921, subdivisions 1, 2, 3, 3a, 4, 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2020, section 290.0131, subdivision 5, is amended to read:
(a)
The amount of income taxes paid or accrued within the taxable year under this chapter and
taxes based on net income paid to any other state or any province or territory of Canada is
an addition to the extent allowed as a deduction in determining federal adjusted gross income.
(b) For the purpose of this subdivision, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph deleted text begin(b)deleted text endnew text begin (a)new text end; 290.9727; 290.9728; and 290.9729.
new text begin
This section is effective for taxable years beginning after December
31, 2020.
new text end
Minnesota Statutes 2020, section 290.0133, subdivision 2, is amended to read:
The amount of any deduction taken for income, excise, or franchise
taxes based on net income or related minimum taxes, including but not limited to the tax
deleted text begin imposed under section 290.0922,deleted text end paid by the corporation to Minnesota, another state, a
political subdivision of another state, the District of Columbia, or any foreign country or
possession of the United States, is an addition.
new text begin
This section is effective for taxable years beginning after December
31, 2020.
new text end
Minnesota Statutes 2020, section 290.0136, is amended to read:
A taxpayer must compute net income by treating losses from the sale or transfer of
certain preferred stock, which the taxpayer treated as ordinary losses pursuant to Division
A, title III, section 301 of Public Law 110-343, as capital losses. The amount of net income
under section 290.01, subdivision 19; taxable net income under section 290.01, subdivision
22; taxable income under section 290.01, subdivision 29; the numerator and denominator
in section 290.06, subdivision 2c, paragraph (e); individual alternative minimum taxable
income under section 290.091, subdivision 2; deleted text begincorporate alternative minimum taxable income
under section 290.0921, subdivision 3;deleted text end and net operating losses under section 290.095 must
be computed for each taxable year as if those losses had been treated by the taxpayer as
capital losses under the Internal Revenue Code, including the limitations under section 1211
of the Internal Revenue Code.
new text begin
This section is effective for taxable years beginning after December
31, 2020.
new text end
Minnesota Statutes 2020, section 290.0921, subdivision 8, is amended to read:
(a) A corporation is allowed a credit against qualified regular
tax for qualified alternative minimum tax previously paid. The credit is allowable only deleted text beginif
the corporation has no tax liability under this section for the taxable year anddeleted text end if the
corporation has an alternative minimum tax credit carryover from a previous year. The
credit allowable in a taxable year equals the lesser ofnew text begin:
new text end
(1) deleted text beginthe excess ofdeleted text end the qualified regular tax for the taxable year deleted text beginover the amount computed
under subdivision 1, clause (1), for the taxable yeardeleted text endnew text begin;new text end or
(2) the carryover credit to the taxable year.
(b) For purposes of this subdivision, the following terms have the meanings given.
(1) "Qualified alternative minimum tax" equals the amount determined under subdivision
1 for deleted text beginthedeleted text endnew text begin anew text end taxable yearnew text begin beginning before January 1, 2021new text end.
(2) "Qualified regular tax" means the tax imposed under section 290.06, subdivision 1.
(c) The qualified alternative minimum tax for a taxable year is an alternative minimum
tax credit carryover to each of the taxable years succeeding the taxable year. The entire
amount of the credit must be carried to the earliest taxable year to which the amount may
be carried. Any unused portion of the credit must be carried to the following taxable year.
No credit may be carried to a taxable year in which alternative minimum tax was paid.
(d) An acquiring corporation may carry over this credit from a transferor or distributor
corporation in a corporate acquisition. The provisions of section 381 of the Internal Revenue
Code apply in determining the amount of the carryover, if any.
new text begin
This section is effective for taxable years beginning after December
31, 2020.
new text end
Minnesota Statutes 2020, section 290.0922, subdivision 1, is amended to read:
deleted text begin
(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under
section 290.9725 for the taxable year includes a tax equal to the following amounts:
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If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is: deleted text end |
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the tax equals: deleted text end |
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less than deleted text end |
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$ deleted text end |
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1,020,000 deleted text end |
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$ deleted text end |
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0 deleted text end |
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$ deleted text end |
deleted text begin
1,020,000 deleted text end |
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to deleted text end |
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$ deleted text end |
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2,039,999 deleted text end |
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$ deleted text end |
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210 deleted text end |
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$ deleted text end |
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2,040,000 deleted text end |
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to deleted text end |
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$ deleted text end |
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10,209,999 deleted text end |
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$ deleted text end |
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610 deleted text end |
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$ deleted text end |
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10,210,000 deleted text end |
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to deleted text end |
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$ deleted text end |
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20,409,999 deleted text end |
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$ deleted text end |
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2,040 deleted text end |
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