HF 2875 Summary

• Updates Minnesota's Internal Revenue Code references from December 31, 2014 to December 31, 2015 to conform state income, franchise, and property taxes to federal tax law changes.

• Creates a federal tax conformity account with $20,000,000 transferred from the general fund, allowing the Commissioner of Revenue to administratively conform Minnesota tax law to certain federal tax extenders without waiting for legislative action.

• Establishes a list of 13 eligible federal tax preferences (including tuition deductions, qualified residence indebtedness discharge, and depreciation allowances) that can be adopted through administrative action if Congress extends them after the legislature adjourns.

• Adds new Section 179 expensing subtraction provisions allowing taxpayers to deduct one-fifth annually over five years of certain business equipment expenses that were previously added back to taxable income.

• Prohibits the Department of Revenue from adjusting individual income tax returns for 2015-2016 based on the updated 2015 federal tax code, and allows amended returns for certain IRA rollovers and wrongful incarceration awards under federal law changes.