HF 1561

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/09/2023 11:36am

A bill for an act
relating to taxation; reducing the corporate franchise tax rate; reducing the rate
used to calculate application of the corporate alternative minimum tax; amending
Minnesota Statutes 2022, sections 290.06, subdivision 1; 290.0921, subdivision
1.

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

Section 1.

Minnesota Statutes 2022, section 290.06, subdivision 1, is amended to read:

Subdivision 1.

Computation, corporations.

The franchise tax imposed upon corporations
shall be computed by applying to their taxable income the rate of 9.8 percent. following
rates for the taxable years provided:

(1) for taxable years beginning before January 1, 2023, 9.8 percent;

(2) for taxable years beginning after December 31, 2022, and before January 1, 2024,
9.3 percent;

(3) for taxable years beginning after December 31, 2023, and before January 1, 2025,
9.05 percent; and

(4) for taxable years beginning after December 31, 2024, 8.8 percent.

EFFECTIVE DATE.

This section is effective for taxable years beginning after December
31, 2022.

Sec. 2.

Minnesota Statutes 2022, section 290.0921, subdivision 1, is amended to read:

Subdivision 1.

Tax imposed.

In addition to the taxes computed under this chapter without
regard to this section, the franchise tax imposed on corporations includes a tax equal to the
excess, if any, for the taxable year of the amount calculated at the following rates on
Minnesota alternative minimum taxable income for the following taxable years, over the
tax imposed under section 290.06, subdivision 1, without regard to this section:

(1) for taxable years beginning before January 1, 2023, 5.8 percent of Minnesota
alternative minimum taxable income; over

(2) the tax imposed under section 290.06, subdivision 1, without regard to this section.

(2) for taxable years beginning after December 31, 2022, and before January 1, 2024,
5.5 percent;

(3) for taxable years beginning after December 31, 2023, and before January 1, 2025,
5.35 percent; and

(4) for taxable years beginning after December 31, 2024, 5.2 percent.

EFFECTIVE DATE.

This section is effective for taxable years beginning after December
31, 2022.