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SF2253 (Legislative Session 94 (2025-2026))

General estate tax subtraction amount increase; combined cap on the subtractions for qualified small business property and qualified farm property increase

Related bill: HF2045

AI Generated Summary

This Minnesota Senate bill (S.F. No. 2253) proposes amendments to the state's estate tax laws. The key changes include:

  1. Increasing the General Subtraction Amount – The bill raises the estate tax exemption threshold to $6,000,000 for estates of decedents dying in 2020 and beyond. Previously, this amount was capped at $3,000,000.

  2. Increasing the Combined Cap on Subtractions for Qualified Small Business and Farm Property – The bill suggests increasing the allowable deductions for estates that include qualified small business or farm property, though specific figures are not mentioned in the summary provided.

  3. Estate Tax Return Requirement Adjustments – The bill updates Minnesota Statutes §289A.10, Subd. 1, to reflect the revised exemption threshold for estate tax filing, requiring a return if:

    • A federal estate tax return is necessary, or
    • The sum of the federal gross estate and federal adjusted taxable gifts made within three years of death exceeds the statutory threshold.

Overall, this legislation aims to reduce estate tax burdens by increasing the exemption amount and deductions for small businesses and farms.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2025SenateFloorActionIntroduction and first reading
March 05, 2025SenateFloorActionReferred toTaxes
March 19, 2025SenateFloorActionAuthor stricken

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends requirements for filing a Minnesota estate tax return under section 289A.10, subdivision 1.",
      "modified": [
        "Increases specific monetary thresholds for required filing for various years."
      ]
    },
    "citation": "289A.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies tax treatment under section 291.016, subdivision 3 for qualified small business and farm property.",
      "modified": [
        "Increases the cap on the subtractions for these properties."
      ]
    },
    "citation": "291.016"
  }
]

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