Conformity
Minnesota Statutes (M.S.) generally conform to the Internal Revenue Code (IRC) as amended through December 31, 2018.
However, for all taxpayers paying income tax except C corporations, Minnesota does not recognize the tax effect of certain provisions of the Tax Cuts and Jobs Act (TCJA) and the Bipartisan Budget Act (BBA).
Do not file amended returns specifically for adjustments related to 2018 tax law changes. Impacted taxpayers will receive letters explaining our adjustments or requesting more information. If taxpayers need to change their return for a different reason, they should file an amended return.
Special Limited Adjustment
Special rules were enacted for non-corporate income taxpayers and those that elect to file a composite return, for tax year 2018 only.
If the changes to the taxpayer's return are due solely to the Internal Revenue Code changes between December 16, 2016 and December 31, 2018, an automatic adjustment is made to the tax liability or refund and no tax effect is recognized.
This automatic adjustment does not apply in the case of certain basis and depreciation adjustments.
Historic Structure Rehabilitation Tax Credit
The Minnesota Historic Structure Rehabilitation Tax Credit is payable in five equal installments over five years, beginning in the year the building was placed in service.
Effective for allocation certificate applications submitted to the Minnesota State Historic Preservation Office after December 31, 2017.
Additional Charge for Underpayment of Estimated Tax (ATC)
For tax year 2018, we will waive the ATC for underpayment of estimated income tax due to uncertainty in tax planning as a result of federal tax law changes effective after December 31, 2016.
IRC Section 965 Deferred Foreign Income (DFI)
Minnesota law allows a subtraction for DFI reported on your federal return.
Inclusion of Global Intangible Low-Taxed Income (GILTI)
Minnesota law allows a subtraction for the inclusion of GILTI reported on your federal return.
Deduction for Foreign Derived Intangible Income (FDII)
Minnesota law requires an addition for any deduction for FDII claimed on your federal return.
