MN SF3449

Minnesota's corporate franchise tax rate would be set at the greater of 9.8% or a calculated rate that increases if federal corporate tax rates are reduced below current levels

The bill creates a trigger mechanism tied to federal changes under Public Law 115-97 (the 2017 Tax Cuts and Jobs Act), using March 23, 2025 as the baseline reference date for the federal rate

If Congress reduces the federal corporate tax rate under Internal Revenue Code section 11(b), Minnesota's rate would automatically increase by the same percentage as the federal decrease, rounded to the nearest 0.05%

The commissioner of revenue is required to calculate both the percentage decrease in federal rates and the corresponding new Minnesota rate

Effective for taxable years beginning after December 31, 2024