S.F. No. 4007 - Summary

• Adopts federal tax provisions from the Tax Cuts and Jobs Act (Public Law 115-97) effective for federal purposes, including amendments to sections 951, 951A, and 965 of the Internal Revenue Code relating to foreign corporation income taxation

• Includes deferred foreign income recognized under IRC Section 965 in Minnesota net income for corporations and resident individuals/estates/trusts who make valid elections under Section 965(h), with ratable application across applicable tax periods

• Treats income from controlled foreign corporations that is included in net income under IRC Sections 951, 951A, or 965 as dividend income for purposes of Minnesota taxation

• Provides special deduction treatment for nonresident individuals, allowing deferred foreign income recognized under IRC Section 965 as a subtraction, effective for taxable years beginning after December 31, 2016 and before January 1, 2019

• Establishes retroactive effective dates for taxable years beginning after December 31, 2016, with changes effective retroactively at the same time as federal implementation