MN HF2707

Eliminates the "marriage penalty" in the standard deduction for taxable years beginning after December 31, 2012, by allowing married couples filing jointly to subtract the difference between twice the standard deduction for single filers and the standard deduction for married couples filing jointly.

Eliminates foreign operating corporations from Minnesota tax law by repealing provisions that allowed deemed dividends from foreign operating corporations and removing related additions to corporate taxable income, effective for taxable years beginning after December 31, 2011.

Repeals the deduction for 80 percent of royalties, fees, or other like income accrued or received from foreign operating corporations or foreign corporations in a unitary business, effective for taxable years beginning after December 31, 2011.

Requires all corporations subject to Minnesota's jurisdiction to file tax returns, removing the prior exemption for foreign operating corporations, effective for taxable years beginning after December 31, 2011.

Makes conforming changes to depreciation adjustments, alternative minimum taxable income calculations, and unitary business provisions to reflect the elimination of foreign operating corporation treatment.