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SF 4012

as introduced - 91st Legislature (2019 - 2020) Posted on 03/06/2020 08:27am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; corporate franchise; providing for apportionment of corporate
net operating losses; amending Minnesota Statutes 2018, section 290.095,
subdivision 3.

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

Section 1.

Minnesota Statutes 2018, section 290.095, subdivision 3, is amended to read:


Subd. 3.

Carryover.

(a) A net operating loss incurred during the taxable year shall be
a net operating loss carryover to each of the 15 taxable years following the taxable year of
such loss.

(b) The entire amount of the net operating loss for any taxable year shall be carried to
the earliest of the taxable years to which such loss may be carried. The portion of such loss
which shall be carried to each of the other taxable years shall be the excess, if any, of the
amount of such loss over the sum of the taxable net income, adjusted by the modifications
specified in subdivision 4, for each of the taxable years to which such loss may be carried.

(c) Where a corporation apportions its income under the provisions of section 290.191,
the net operating loss deduction incurred in any taxable year shall be allowed to the extent
of the apportionment ratio of the loss yearnew text begin, except that a qualifying corporation may elect
to use an apportionment ratio of one for the loss year when determining the amount of the
deduction allowed under this paragraph
new text end.

(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply to
carryovers in certain corporate acquisitions and special limitations on net operating loss
carryovers. The limitation amount determined under section 382 shall be applied to net
income, before apportionment, in each post change year to which a loss is carried.

new text begin (e) For purposes of this subdivision, a corporation is a qualifying corporation if:
new text end

new text begin (1) the corporation apportions its income under section 290.191;
new text end

new text begin (2) the corporation's factors for apportionment purposes in both the numerator and
denominator of the apportionment formula are zero; and
new text end

new text begin (3) the corporation's principal address and place of business is in Minnesota.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2019.
new text end