MN HF4525

Amends Minnesota Statutes sections 290.0131 and 290.0133 to limit Section 179 expensing deductions to 80 percent of amounts exceeding those allowed under the Internal Revenue Code as amended through December 31, 2003, for taxable years beginning before January 1, 2018.

Makes the Section 179 expensing amendments effective retroactively for taxable years beginning after December 31, 2017.

Eliminates interest and penalty charges for late tax payments arising from commissioner assessments of additional income tax on capital gains previously deferred under Internal Revenue Code Section 1031 for taxable years 2018-2019.

Limits the penalty exception to taxpayers subject to retroactive application of federal law changes and whose total income tax increased by at least 12 percent due to the retroactive application.

Requires the commissioner to refund qualifying taxpayers any interest and penalties paid within 60 days of the effective date, effective retroactively for assessments ordered after June 1, 2019.