HF2133

HF2133 (Legislative Session 94 (2025-2026))

Income tax; pass-through entity tax technical correction made.

AI Generated Summary

This bill proposes a technical correction to Minnesota's passthrough entity tax regulations. Specifically, it amends Minnesota Statutes 2024, section 290.06, subdivision 23a, clarifying the rules regarding a tax credit for passthrough entity taxes paid to another state.

The key provisions include:
- Allowing a credit for passthrough entity taxes paid to another state, applicable to entities subject to Minnesota tax.
- Specifying that only a "qualifying owner" can claim the credit, and it must be claimed as prescribed by the commissioner.
- Stating that this provision expires in alignment with section 164(b)(6)(B) of the Internal Revenue Code but does not impact the state's ability to audit or examine claims.
- Providing definitions for key terms such as "income," "passthrough entity tax," "qualifying entity," and "qualifying owner."

The bill seeks to clarify the administration of the passthrough entity tax credit and ensure compliance with Minnesota tax law.

Bill text versions

Introduction PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 09, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
March 09, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
March 11, 2025	House	Floor	Action	Committee report, to adopt as amended
March 11, 2025	House	Floor	Action	Second reading
March 12, 2025	House	Floor	Action	House rule 1.21, placed on Calendar for the Day
March 12, 2025	House	Floor	Action	Motion to lay on the table
March 12, 2025	House	Floor	Action	Motion prevailed

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill makes a technical correction to the passthrough entity tax under section 290.06, subdivision 23a.",
      "modified": [
        "Clarifies the credit mechanism for taxes paid to another state and specifies eligibility conditions for qualifying owners."
      ]
    },
    "citation": "290.06",
    "subdivision": "subdivision 23a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of 'qualifying entity' and 'qualifying owner' under section 289A.08, subdivision 7a.",
      "modified": [
        "Ensures consistency in the definition related to passthrough entity tax."
      ]
    },
    "citation": "289A.08",
    "subdivision": "subdivision 7a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provides the meaning of 'income' as referenced in section 290.01, subdivision 19.",
      "modified": [
        "Clarifies the tax terminology and applicability."
      ]
    },
    "citation": "290.01",
    "subdivision": "subdivision 19"
  }
]