Corporate franchise and unitary taxation; certain foreign corporations required to be treated as unitary with a shareholder.

HF 1649 requires certain foreign corporations (specifically those subject to U.S. federal "global intangible low-taxed income" rules) to be treated as part of a single unitary tax group with their U.S. shareholder in Minnesota. The bill amends Minnesota tax law to mandate that these foreign subsidiaries be included in the U.S. parent company's state tax return, rather than being taxed separately. Key provisions include requiring foreign corporations to report income using U.S. accounting standards and allowing businesses to elect a "worldwide" tax approach for their entire global operations. This directly affects Minnesota-based corporations that own foreign subsidiaries subject to federal GILTI rules, changing how their foreign income is calculated and taxed. The changes take effect for tax years beginning after December 31, 2024.