SF3692 Summary

• Updates Minnesota's Internal Revenue Code conformity from December 31, 2018 to November 15, 2021, incorporating federal tax law changes retroactively where applicable

• Reduces individual income tax rates effective for taxable years beginning after December 31, 2021: lowest bracket drops from 5.35% to 2.8%, with corresponding adjustments to income thresholds for all filing statuses

• Provides full subtraction of Social Security benefits (up to maximum amounts) for eligible taxpayers, effective for taxable years beginning after December 31, 2021

• Adds portability of deceased spousal unused estate tax exclusion amounts for surviving spouses, allowing them to use a deceased spouse's $3,000,000 exclusion amount for estates of decedents dying after June 30, 2022

• Modifies estate tax filing thresholds and adds provisions for net operating losses, meal expense deductions, and delayed business interest deductions related to COVID-19 relief provisions