Loading chat...
MN HF2444
Bill
Status
2/22/2012
Primary Sponsor
Ryan Winkler
Click for details
AI Summary
HF2444 Summary
-
Eliminates tax preferences for foreign source income and repeals the subtraction for foreign royalties under Minnesota corporate franchise tax law.
-
Expands the definition of "domestic corporation" to include foreign corporations incorporated in or conducting substantial business in designated tax havens, effective for taxable years beginning after December 31, 2011.
-
Reduces the corporate franchise tax rate from 9.8% to 6.5% and the alternative minimum tax rate from 5.8% to 3.8%, effective for taxable years beginning after December 31, 2011.
-
Eliminates the single-weighted sales factor apportionment formula, replacing it with an equally-weighted three-factor formula (sales, property, payroll) for corporate income apportionment.
-
Expands the Minnesota Science, Technology, and Research Authority to include research focus; establishes a public research capital grant program; requires a plan for expanded research capacity by February 15, 2013; and establishes a joint research partnership between the University of Minnesota and Minnesota State Colleges and Universities.
Legislative Description
Foreign source income preferences eliminated, foreign royalty subtraction repealed, domestic corporation definition expanded, JOBZ tax benefits modified, corporate franchise tax rates reduced, income apportionment modified, foreign operating corporations repealed, special apportionment formula repealed for mail order businesses, Minnesota Science and Technology Authority expanded, public research infrastructure grant program established, expanded research plan required, and public postsecondary research partnership established.
Last Action
Author added Brynaert
2/29/2012