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Bill

HF 947

Individual income and corporate franchise taxes; subtraction for global intangible low-taxed income established, corporate net operating loss deduction increased, and dividend received deduction increased.

2025-2026 Regular Session Introduced by Greg Davids

Bill reduces Minnesota corporate and business taxes through GILTI subtraction and increased deductions for losses and dividends, lowering state revenue without identified offsets.

Introduction and first reading, referred to Taxes
#corporationsandpartnerships #taxation-income
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Bill Summary · HF 947

Legislative bill overview

HF 947 modifies Minnesota's tax code by creating a subtraction for global intangible low-taxed income (GILTI), increasing the corporate net operating loss (NOL) deduction, and expanding the dividend received deduction. These changes primarily affect how corporations and businesses calculate their state tax obligations by allowing them to exclude or deduct certain categories of income and losses.

Why is this important

These tax provisions directly reduce state tax revenue while potentially benefiting corporations and business owners. The GILTI subtraction aligns Minnesota with federal tax treatment of international income, while increased NOL and dividend deductions affect how much tax profitable businesses owe, which has consequences for state funding for education, infrastructure, and services.

Potential points of contention

  • Revenue impact: The bill reduces state tax collections without identified offsetting revenue sources, potentially affecting state budget capacity
  • Corporate favorability: Critics may argue these changes disproportionately benefit large corporations and wealthy shareholders while reducing progressive tax revenue
  • GILTI provision complexity: The global intangible low-taxed income subtraction is technically complex and may primarily benefit multinational corporations with international operations
  • Equity concerns: Expanding business-related deductions while individual income taxes remain unchanged could be viewed as shifting the tax burden toward individual taxpayers

Compiled from official sources — confirm details with the bill’s official record.

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