MN SF3405

Extends Minnesota's pass-through entity tax (PTE) election for partnerships, LLCs, and S corporations through taxable years beginning after December 31, 2029, removing the previous tie to the federal SALT deduction cap expiration date

Qualifying entities with owners holding more than 50% of ownership interests may elect to pay state income tax at the entity level rather than having individual owners pay on their personal returns

Tax is calculated by multiplying each qualifying owner's income by the highest individual tax rate, with credits and deductions limited to those allowed to the qualifying owner

Preserves the credit for pass-through entity taxes paid to other states, allowing qualifying owners to claim credits against Minnesota PTE tax

Effective retroactively from January 1, 2026, reviving and reenacting the provisions as of that date