Net investment income tax expanded to apply to all trade or business income that is exempt from self-employment taxes.

This bill expands Minnesota's Net Investment Income Tax to include all trade or business income that is currently exempt from self-employment taxes, affecting high-income individuals, estates, and trusts. The key change removes the previous exclusion for certain business income, ensuring it is subject to the one percent tax on net investment income exceeding $1,000,000. The legislation applies to taxable years beginning after December 31, 2025, and maintains existing rules for calculating the tax for non-residents, estates, and trusts based on income allocated to Minnesota.