Individual income tax and corporate franchise tax refunds modified, and refunds required to include interest calculated on payments of estimated tax.

HF 759 requires Minnesota to include interest on estimated tax payments when issuing refunds for overpaid individual income tax and corporate franchise tax. This affects taxpayers - both individuals and businesses like S corporations and partnerships - who overpay taxes and file refund claims. The interest is calculated from the date each estimated tax payment was made until the earlier of the refund claim date or the tax due date, using the standard tax interest rate. The change applies to refunds for taxes paid in taxable years beginning after December 31, 2024.