MN SF2029

Eliminates preferences for foreign source income and repeals the subtraction for foreign royalties, effective for returns filed after December 31, 2011.

Expands the definition of domestic corporations to include foreign corporations incorporated or doing business in specified tax havens (34 jurisdictions listed), unless the jurisdiction has a tax treaty with automatic information exchange with the United States.

Modifies the apportionment formula by removing the graduated transition table for sales, property, and payroll factors and implementing an equal three-factor formula (one-third each) for taxable years beginning after December 31, 2011.

Eliminates Job Opportunity Building Zone (JOBZ) tax exemptions for corporate franchise taxes and repeals related provisions for deemed dividends from foreign operating corporations and special apportionment rules for certain mail order businesses.

Modifies school aid payment and property tax recognition shifts by adjusting levy recognition percentages and establishing a repayment mechanism tied to revenue certified under the corporate tax reform provisions.