SF25 Summary

• Updates Minnesota's Internal Revenue Code conformity date from December 31, 2018 to December 15, 2022, aligning state tax law with more recent federal tax changes.

• Creates temporary additions and subtractions for individuals, estates, trusts, and corporations related to pandemic-related tax credits and deductions, including employee retention credits, paid leave credits, and charitable contribution rules.

• Adds provisions for disallowed business interest deductions and net operating losses for tax years 2018-2021, with five-year carryforward periods beginning after December 31, 2022.

• Establishes "earned income" definition based on federal Internal Revenue Code section 32(c) and modifies standard deductions for dependents to reference this definition.

• Extends statute of limitations to six months after enactment for taxpayers whose tax liability changes due to this act, with interest running from six months after enactment date.