HF2768 (Legislative Session 94 (2025-2026))
individual income taxes, corporate franchise taxes, sales and use taxes, and other various taxes and tax-related provisions modified; various policy and technical changes made; income tax credits and subtractions modified; and enforcement, return, and audit provisions modified.
Related bill: SF2997
AI Generated Summary
Purpose of the Bill
This bill aims to revise various tax laws in Minnesota. It makes changes to individual income taxes, corporate franchise taxes, sales and use taxes, and addresses policy and technical aspects of taxation. It also updates enforcement, return, and auditing processes for these taxes.
Main Provisions
- Individual Income Taxes and Corporate Franchise Taxes: The bill modifies how certain tax credits and subtractions are calculated and applied. It provides eligibility requirements for claiming specific tax credits.
- Sales and Use Taxes: Changes are proposed to the exemptions, collections, and deposits of sales and use taxes. These modifications aim to streamline tax processes and ensure effective tax collection.
- Property Tax Classification: The bill revises the classification of properties for tax purposes, which might affect property tax rates and liabilities.
- Tax Enforcement and Audits: Updates are made to the rules governing tax enforcement, including how tax returns are processed and how audits are conducted.
Significant Changes to Existing Law
- Tax Credits Modifications: The eligibility for various tax credits, including production cost credits, is adjusted. Taxpayers must meet specific requirements, such as obtaining a credit certificate, to claim these advantages.
- Partnership Provisions: Adjustments are made to how partnerships are taxed, which could affect the way income and deductions are divided among partners.
- Technical Adjustments: Various technical and clarifying changes across numerous tax-related statutes address outdated references and streamline the tax code.
Relevant Terms
income tax, corporate franchise tax, sales tax, use tax, property tax, tax credit, tax subtraction, tax exemption, tax collection, tax enforcement, tax audit, taxpayer, production costs, partnership provisions.
Bill text versions
- Introduction PDF file
Past committee meetings
- Taxes on: April 03, 2025 10:15
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Clarification on the consecutive 12-month period for calculation."
],
"removed": [
""
],
"summary": "This bill modifies the credit allowance for production costs under section 116U.27, subdivision 2.",
"modified": [
"Conditions under which the credit can be claimed."
]
},
"citation": "116U.27",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
"New reporting requirements for businesses."
],
"removed": [
"Obsolete audit procedures."
],
"summary": "This bill alters compliance requirements for tax administration under section 270C.445, subdivisions 3 and 6.",
"modified": [
"Timeframe for submission of tax documents."
]
},
"citation": "270C.445",
"subdivision": "subdivisions 3, 6"
},
{
"analysis": {
"added": [
"New classification for mixed-use properties."
],
"removed": [
"Residential subclass that is no longer applicable."
],
"summary": "Changes to property tax classification in section 273.13, subdivision 22.",
"modified": [
"Criteria for classification of seasonal property."
]
},
"citation": "273.13",
"subdivision": "subdivision 22"
},
{
"analysis": {
"added": [
"Electronic filing encouragement with incentives."
],
"removed": [
"Paper submission options phased out."
],
"summary": "Amendments to the filing requirements for tax returns under section 289A.08, subdivision 7a.",
"modified": [
"Deadline adjustments for quarterly returns."
]
},
"citation": "289A.08",
"subdivision": "subdivision 7a"
},
{
"analysis": {
"added": [
"New data fields required for report submission."
],
"removed": [
""
],
"summary": "Adjustments to information reporting under section 289A.12, subdivision 18.",
"modified": [
"Alignment with federal reporting timelines."
]
},
"citation": "289A.12",
"subdivision": "subdivision 18"
},
{
"analysis": {
"added": [
"Streamlined payment options for taxpayers."
],
"removed": [
"Outdated penalty clauses."
],
"summary": "Updates to tax settlement procedures under section 289A.31, subdivision 1.",
"modified": [
"Interest rates on overpayments and underpayments."
]
},
"citation": "289A.31",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Additional scenarios of tax residency."
],
"removed": [
"Narrow definitions of taxable entities."
],
"summary": "Revisions to definitions related to income tax under section 290.01, subdivision 19.",
"modified": [
"Clarifications on income categorization."
]
},
"citation": "290.01",
"subdivision": "subdivision 19"
},
{
"analysis": {
"added": [
"New deductions for environmentally-friendly business practices."
],
"removed": [
"Duplicate deductions with federal allowances."
],
"summary": "Modifications in special deductions under section 290.0132, subdivisions 26 and 34.",
"modified": [
"Update criteria for education-related deductions."
]
},
"citation": "290.0132",
"subdivision": "subdivisions 26, 34"
},
{
"analysis": {
"added": [
"Increased subtractions for charitable donations."
],
"removed": [
""
],
"summary": "Amendments to tax subtraction rules under section 290.0134, subdivision 20.",
"modified": [
"Conditions on retirement income subtractions."
]
},
"citation": "290.0134",
"subdivision": "subdivision 20"
},
{
"analysis": {
"added": [
"Credits for small business innovation."
],
"removed": [
"Expired sunset clauses for certain credits."
],
"summary": "Changes to credit provisions under section 290.0693, subdivisions 1, 6, and 8.",
"modified": [
"Enhanced credit percentages for new industries."
]
},
"citation": "290.0693",
"subdivision": "subdivisions 1, 6, 8"
},
{
"analysis": {
"added": [
"Expanded eligibility for emerging technology sectors."
],
"removed": [
""
],
"summary": "Revisions to investment credits under section 290.0695, subdivision 2.",
"modified": [
"Investment thresholds for qualification."
]
},
"citation": "290.0695",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
"Exemptions for non-profit cultural organizations."
],
"removed": [
"Outdated exemption criteria."
],
"summary": "Exemptions updates for sales taxes under section 297A.71, subdivision 54.",
"modified": [
"Clarified language on durable goods exemptions."
]
},
"citation": "297A.71",
"subdivision": "subdivision 54"
},
{
"analysis": {
"added": [
"Simplified refund process for qualifying entities."
],
"removed": [
"Historical refund claims no longer allowed."
],
"summary": "Adjustments to sales tax refunds and credits under section 297A.75, subdivisions 1, 2, and 3.",
"modified": [
"Caps on refund amounts increased."
]
},
"citation": "297A.75",
"subdivision": "subdivisions 1, 2, 3"
},
{
"analysis": {
"added": [
"Special allocations for digital sales."
],
"removed": [
"Redundant cross-references."
],
"summary": "Tax collection and distribution procedures under section 297A.94.",
"modified": [
"Distribution formulas for local governments."
]
},
"citation": "297A.94",
"subdivision": ""
},
{
"analysis": {
"added": [
"Provisions for temporary local tax trials."
],
"removed": [
"Regulations conflicting with state-wide policies."
],
"summary": "Updates to local sales tax imposition rules under section 297A.99, subdivision 10.",
"modified": [
"Approval process for local tax changes."
]
},
"citation": "297A.99",
"subdivision": "subdivision 10"
},
{
"analysis": {
"added": [
"New jurisdictional rules for multi-state sellers."
],
"removed": [
""
],
"summary": "Changes to sales tax jurisdiction guidelines under section 297A.995, subdivisions 2 and 10.",
"modified": [
"Interstate sales tax agreements."
]
},
"citation": "297A.995",
"subdivision": "subdivisions 2, 10"
},
{
"analysis": {
"added": [
"Increased reporting requirements for gaming venues."
],
"removed": [
"Previous exemptions for electronic gaming."
],
"summary": "Adjustments to gaming tax regulations under section 297E.06, subdivision 4.",
"modified": [
"Tax rate alignment with federal guidelines."
]
},
"citation": "297E.06",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [
"Credits for insurers promoting public safety."
],
"removed": [
""
],
"summary": "Insurance tax provisions updates under section 297I.20, subdivision 4.",
"modified": [
"Tax liability calculations for large insurance firms."
]
},
"citation": "297I.20",
"subdivision": "subdivision 4"
}
]