MN SF2479

Modifies the deduction for royalties, fees, and other income from foreign operating corporations from 80% to 62% for tax years 2012 and to 39% for tax years 2013 and later.

Adds a new provision allowing 62% deduction for tax years 2012 and 39% deduction for tax years 2013 and later on dividends deemed paid from foreign operating corporations under the unitary business rules.

Clarifies that deemed dividends from foreign operating corporations are treated as dividends under the dividend deduction provisions and that deductions for expenses related to such dividends are not disallowed.

Applies these modifications to unitary business provisions governing how foreign operating corporations' income and apportionment factors are treated in combined reports.

Effective for taxable years beginning after December 31, 2011.