Individual income and corporate franchise tax; business exemptions provided.

HF 373 creates tax exemptions for Minnesota businesses that received Paycheck Protection Program (PPP) loans and for all businesses, effective for taxable years beginning after December 31, 2025. Businesses with PPP loans will be exempt from corporate franchise tax and individual income tax on business income once cumulative tax paid equals their total PPP loan amount, with calculations starting in 2026. All other businesses receive a blanket exemption from these taxes beginning in 2026. The bill defines "trade or business income" using federal tax terms and requires businesses to provide documentation to verify eligibility.