MN SF1113

Allows resident sole members of disregarded limited liability companies (LLCs) to claim income tax credits for net income taxes paid by those LLCs to other states, effective for taxable years beginning after December 31, 2022.

Extends existing tax credit provisions for S corporations and partnerships to apply to single-member disregarded LLCs by treating the sole member as having paid taxes equal to the LLC's pro rata share of net income taxes paid to other states.

Adds sales between a sole member of a disregarded LLC and the LLC itself to the list of exemptions for sales of property used in a trade or business, effective for sales and purchases after June 30, 2023.

Adds "disregarded limited liability company" as a defined term in the sales exemption provisions, meaning an LLC disregarded as a separate entity from its owner under the Internal Revenue Code.