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HF2045 (Legislative Session 94 (2025-2026))

General subtraction amount increased, and combined cap on the subtractions for qualified small business property and qualified farm property increased.

Related bill: SF2253

AI Generated Summary

Purpose of the Bill

The purpose of this legislative proposal is to modify the existing laws in Minnesota concerning estate taxation. It aims to increase the amount that can be subtracted from estate taxes, specifically focusing on estate-related provisions affecting small businesses and farm properties.

Main Provisions

  • Increase in General Subtraction Amount: The bill proposes an increase in the general subtraction amount that is applied to estates in Minnesota. This is the portion of an estate's value that is not subject to state estate taxes.
  • Increase in Combined Cap on Subtractions: The bill seeks to enlarge the combined cap for tax subtractions specifically allocated for qualified small business properties and qualified farm properties. This change is meant to provide further tax relief to estates involving these types of properties.

Significant Changes to Existing Law

  • The bill amends the Minnesota Statutes section 289A.10 subdivision 1 by adjusting the thresholds at which a Minnesota estate tax return must be filed. It is proposed that estates valued above $6,000,000 would be required to file, changing the previous threshold from $3,000,000.
  • The bill additionally affects the computation and filing requirements for estate taxes by increasing the deduction limits, thus impacting how estate taxes are calculated and potentially reducing the tax burden on certain estates.

Relevant Terms

  • Estate Tax
  • General Subtraction Amount
  • Qualified Small Business Property
  • Qualified Farm Property
  • Minnesota Estate Tax Return

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 10, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new threshold for estates of decedents dying in 2020 and thereafter, set at $6,000,000."
      ],
      "removed": [],
      "summary": "This bill amends the section related to the requirement for filing Minnesota estate tax returns under 289A.10.",
      "modified": [
        "Updates the computation criteria for estate tax based on death year thresholds."
      ]
    },
    "citation": "289A.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends Minnesota Statutes section 291.016 related to estate tax adjustments.",
      "modified": [
        "Changes to the combined cap on subtractions for qualified small business and farm property."
      ]
    },
    "citation": "291.016"
  }
]

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