The May 2023 Minnesota tax bill provided a change to reduce the corporate net operating loss deduction limit from 80% to 70%. This change is effective for tax years beginning after December 31, 2022.

The effective date for the 70% NOL limitation might change to tax years beginning after December 31, 2023. The legislature provided the commissioner of Revenue with a letter of intent to change the effective date. We will continue to monitor the legislative process and provide updates as information is available.

As a reminder, all C corporations are granted an automatic seven-month extension to file Form M4, Corporation Franchise Tax Return.

If this change impacts your 2023 corporation franchise tax return, follow our tax law updates during the 2024 legislative session. Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook and Twitter or by signing up for our email subscription list.