1.1 A bill for an act
1.2 relating to taxation; estate; providing for portability of the deceased spousal unused
1.3 exclusion amount; making technical changes and removing obsolete provisions;
1.4 amending Minnesota Statutes 2024, sections 289A.10, subdivision 1, by adding a
1.5 subdivision; 289A.12, by adding a subdivision; 291.016, subdivision 3; 291.03,
1.6 subdivision 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 289A.10, subdivision 1, is amended to read:
1.9 Subdivision 1.Return required.(a) In the case of a decedent who has an interest in
1.10property with a situs in Minnesota, the personal representative must submit a Minnesota
1.11estate tax return to the commissioner, on a form prescribed by the commissioner, if:
1.12 (1) a federal estate tax return is required to be filed; or
1.13 (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
1.14section 2001(b) of the Internal Revenue Code, made within three years of the date of the
1.15decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
1.16estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
1.17$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying
1.18in 2018; $2,700,000 for estates of decedents dying in 2019; and $3,000,000 for estates of
1.19decedents dying in 2020 and thereafter.
1.20 (b) The return must contain a computation of the Minnesota estate tax due. The return
1.21must be signed by the personal representative.
1.22 EFFECTIVE DATE.This section is effective the day following final enactment.
1Section 1.
REVISOR EAP/ES 25-0085401/15/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1448
NINETY-FOURTH SESSION 2.1 Sec. 2. Minnesota Statutes 2024, section 289A.10, is amended by adding a subdivision to
2.2read:
2.3 Subd. 1b.Election of portability of deceased spousal unused exclusion amounts;
2.4election irrevocable; deemed elections.(a) A personal representative of a decedent's estate
2.5may elect, on a return required under subdivision 1, to allow a decedent's surviving spouse
2.6to take into account the decedent's deceased spousal unused exclusion amount, as provided
2.7in section 291.016, subdivision 3, paragraph (b).
2.8 (b) The election under paragraph (a) is irrevocable. By filing a return under subdivision
2.91, the personal representative is deemed to have elected portability unless the personal
2.10representative states affirmatively on the return that the decedent's estate is not electing
2.11portability. The commissioner may prescribe the form of the election on the return.
2.12 EFFECTIVE DATE.This section is effective for estates of decedents dying after
2.13December 31, 2024.
2.14 Sec. 3. Minnesota Statutes 2024, section 289A.12, is amended by adding a subdivision to
2.15read:
2.16 Subd. 19.Election of portability of deceased spousal unused exclusion amounts
2.17when estate tax return not required.A personal representative of a decedent's estate that
2.18is not required to file a return under section 289A.10, subdivision 1, may file a return to
2.19allow a decedent's surviving spouse to take into account the decedent's deceased spousal
2.20unused exclusion amount, as provided in section 291.016, subdivision 3, paragraph (b). The
2.21return is subject to the same provisions as a return required under section 289A.10,
2.22subdivision 1.
2.23 EFFECTIVE DATE.This section is effective for estates of decedents dying after
2.24December 31, 2024.
2.25 Sec. 4. Minnesota Statutes 2024, section 291.016, subdivision 3, is amended to read:
2.26 Subd. 3.Subtraction.(a) For estates of decedents dying after December 31, 2016, A
2.27subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
2.28 (1) the an exclusion amount for the year of death under paragraph (b) of $3,000,000;
2.29and
2.30 (2) the lesser of:
2Sec. 4.
REVISOR EAP/ES 25-0085401/15/25 3.1 (i) (2) the value of qualified small business property under section 291.03, subdivision
3.29, and the value of qualified farm property under section 291.03, subdivision 10; or, the
3.3sum of which must not exceed $2,000,000.
3.4 (ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
3.5 (b) The following exclusion amounts apply for the year of death:
3.6 (1) $2,100,000 for decedents dying in 2017;
3.7 (2) $2,400,000 for decedents dying in 2018;
3.8 (3) $2,700,000 for decedents dying in 2019; and
3.9 (4) $3,000,000 for decedents dying in 2020 and thereafter.
3.10 (b) In the case of a decedent that is a surviving spouse there is an additional subtraction
3.11allowed in computing the Minnesota taxable estate, a deceased spousal unused exclusion
3.12amount, which is equal to the lesser of:
3.13 (1) $3,000,000; or
3.14 (2) the excess of $3,000,000 over the amount of the Minnesota taxable estate of the last
3.15predeceased spouse of the decedent, but not including in the taxable estate property described
3.16in section 291.03, subdivisions 9 and 10, and computed without regard to the subtractions
3.17in this subdivision, but in no case less than zero.
3.18 (c) The subtraction under this subdivision must not reduce the Minnesota taxable estate
3.19to less than zero.
3.20 EFFECTIVE DATE.This section is effective for estates of decedents dying after
3.21December 31, 2024.
3.22 Sec. 5. Minnesota Statutes 2024, section 291.03, subdivision 1, is amended to read:
3.23 Subdivision 1.Tax amount.The tax imposed must be computed by applying to the
3.24Minnesota taxable estate the following schedule of rates and then multiplying the resulting
3.25amount multiplied by a fraction, not greater than one, the numerator of which is the value
3.26of the Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2,
3.27clause (3), with a Minnesota situs, and the denominator of which is the federal gross estate
3.28plus the value of gifts under section 291.016, subdivision 2, clause (3):
3.29 (a) For estates of decedents dying in 2017:
Rate of Tax3.30 Amount of Minnesota Taxable Estate
12 percent3.31Not over $5,100,000
3Sec. 5.
REVISOR EAP/ES 25-0085401/15/25 $612,000 plus 12.8 percent of the excess over
4.2 $5,100,000
4.1Over $5,100,000 but not over $7,100,000
$868,000 plus 13.6 percent of the excess over
4.4 $7,100,000
4.3Over $7,100,000 but not over $8,100,000
$1,004,000 plus 14.4 percent of the excess
4.6 over $8,100,000
4.5Over $8,100,000 but not over $9,100,000
$1,148,000 plus 15.2 percent of the excess
4.8 over $9,100,000
4.7Over $9,100,000 but not over $10,100,000
$1,300,000 plus 16 percent of the excess over
4.10 $10,100,000
4.9Over $10,100,000
4.11 (b) For estates of decedents dying in 2018 and thereafter:
Rate of Tax4.12 Amount of Minnesota Taxable Estate
13 percent4.13Not over $7,100,000
$923,000 plus 13.6 percent of the excess over
4.15 $7,100,000
4.14Over $7,100,000 but not over $8,100,000
$1,059,000 plus 14.4 percent of the excess
4.17 over $8,100,000
4.16Over $8,100,000 but not over $9,100,000
$1,203,000 plus 15.2 percent of the excess
4.19 over $9,100,000
4.18Over $9,100,000 but not over $10,100,000
$1,355,000 plus 16 percent of the excess over
4.21 $10,100,000
4.20Over $10,100,000
4.22 EFFECTIVE DATE.This section is effective the day following final enactment.
4Sec. 5.
REVISOR EAP/ES 25-0085401/15/25