MN HF3561

Modifies the credit for taxes paid to another state by changing the calculation method for individuals, estates, and trusts to use federal adjusted gross income as the base instead of the prior method.

Allows S corporation shareholders and partnership partners to claim credits for their pro rata share of net income taxes paid by those entities to other states.

Extends the definition of "another state" to include the District of Columbia and Canadian provinces and territories, while excluding Puerto Rico and Congressional territories.

For Wisconsin compensation for personal or professional services, removes the restriction that credits cannot exceed the tax reduction, and directs the commissioner to refund any excess credit over tax liability.

Establishes an updated benchmark study for the Minnesota-Wisconsin income tax reciprocity agreement, with an unspecified appropriation from the general fund to the commissioner of revenue for fiscal year 2011, contingent on Wisconsin's agreement.