HF 2133

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/13/2025 04:10 p.m.

A bill for an act
relating to taxation; income; making a technical correction to the pass-through
entity tax; amending Minnesota Statutes 2024, section 290.06, subdivision 23a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 290.06, subdivision 23a, is amended to read:

Subd. 23a.

Pass-through entity tax paid to another state.

(a) A credit is allowed against
the tax imposed on a qualifying entity under section 289A.08, subdivision 7a, for
pass-through entity tax paid to another state. The credit under this subdivision is allowed
as a credit for taxes paid to another state under subdivision 22, paragraph (a), and may only
be claimed by a qualifying owner. The credit allowed under this subdivision must be claimed
in a manner prescribed by the commissioner.

(b) This deleted text begin section deleted text end new text begin subdivision new text end expires at the same time and on the same terms as section
164(b)(6)(B) of the Internal Revenue Code, except that the expiration of this deleted text begin section deleted text end
new text begin subdivision new text end does not affect the commissioner's authority to audit or power of examination
and assessments for credits claimed under this section.

(c) As used in this subdivision, the following terms have the meanings given:

(1) "income" has the meaning provided in section 290.01, subdivision 19, paragraph (i);

(2) "pass-through entity tax" means an entity-level tax imposed on the income of a
partnership, limited liability corporation, or S corporation;

(3) "qualifying entity" has the meaning provided in section 289A.08, subdivision 7a,
paragraph (a); and

(4) "qualifying owner" has the meaning provided in section 289A.08, subdivision 7a,
paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end