MN SF2905

Allows corporations a deduction equal to 80 percent of royalties, fees, or other like income received from foreign corporations that are part of the same unitary business, unless the income is from U.S. sources.

Deduction applies only to foreign royalties included in a corporation's Minnesota taxable net income and does not apply to royalties from tax-exempt corporations.

Excludes royalties, fees, or other like income qualifying for the foreign royalties deduction from the sales factor used in apportionment calculations.

Permits deductions for expenses, interest, or taxes otherwise allowable under Minnesota tax law that are connected with or allocable against the foreign royalties income.

Effective for taxable years beginning after December 31, 2013, with corresponding amendments to alternative minimum taxable income calculations and unitary business provisions.