MN SF2443

Modifies Minnesota's pass-through entity tax to clarify that income of resident qualifying owners of partnerships and limited liability companies taxed as partnerships is not subject to allocation outside the state.

Expands the definition of "qualifying owner" to include disregarded entities that have a qualifying owner as their single owner.

Adds requirement that audited partnerships file amended pass-through entity tax reports for direct partners included in pass-through entity tax returns and pay any additional amounts due from federal adjustments.

Makes the pass-through entity tax provisions expire at the same time as the federal tax code provision (Section 164(b)(6)(B)) that allows state and local taxes to be deducted, except the state tax commissioner retains authority to audit and assess credits claimed under this section.

Applies retroactively to taxable years beginning after December 31, 2021.