HF1480

This bill proposes changes to Minnesota’s corporate franchise and unitary taxation laws, specifically expanding the unitary business group to include foreign corporations. Key aspects include:

1. Expansion of Unitary Group: Foreign corporations and other foreign entities that have a unitary business relationship with a domestic company would be subject to Minnesota’s corporate franchise tax.

2. Amendments to Net Income Definition: The bill revises the definition of "net income" for corporations, trusts, estates, partnerships, and passthrough entities, aligning elements with the Internal Revenue Code and establishing specific rules for foreign entities.

3. Tax Reporting for Foreign Corporations: If determining a foreign corporation’s federal taxable income is deemed impractical, the Commissioner of Revenue may require financial reporting based on generally accepted accounting principles (GAAP) or financial disclosures from the U.S. Securities and Exchange Commission (SEC). The commissioner may also mandate translations and currency conversions.

4. Repeal of Certain Statutes: The bill repeals provisions in Minnesota Statutes 2024, section 290.21, subdivisions 9 and 10, which likely pertain to exemptions or tax treatment exclusions that conflict with the new approach to unitary taxation.

The bill has been referred to the Committee on Taxes for further review and potential amendments before consideration by the full legislature.