Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2637 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; individual income; corporate franchise; allowing a credit for
3	3	1.3 local advertising expenses; amending Minnesota Statutes 2024, sections 290.0131,
4	4	1.4 by adding a subdivision; 290.0133, by adding a subdivision; proposing coding for
5	5	1.5 new law in Minnesota Statutes, chapter 290.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 290.0131, is amended by adding a subdivision
8	8	1.8to read:
9	9	1.9 Subd. 21.Advertising expenses.The amount of qualifying local media advertising
10	10	1.10expenses used to claim the credit under section 290.0696 is an addition.
11	11	1.11 EFFECTIVE DATE.This section is effective for taxable years beginning after December
12	12	1.1231, 2024.
13	13	1.13 Sec. 2. Minnesota Statutes 2024, section 290.0133, is amended by adding a subdivision
14	14	1.14to read:
15	15	1.15 Subd. 16.Advertising expenses.The amount of qualifying local media advertising
16	16	1.16expenses used to claim the credit under section 290.0696 is an addition.
17	17	1.17 EFFECTIVE DATE.This section is effective for taxable years beginning after December
18	18	1.1831, 2024.
19	19	1.19 Sec. 3. [290.0696] CREDIT FOR ADVERTISING IN LOCAL MEDIA.
20	20	1.20 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
21	21	1.21the meanings given.
22	22	1Sec. 3.
23	23	25-04271 as introduced03/03/25 REVISOR EAP/VJ
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 2637NINETY-FOURTH SESSION
27	27	(SENATE AUTHORS: HAUSCHILD, Kupec, Marty and Nelson)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading03/17/2025
30	30	Referred to Taxes 2.1 (b) "Applicable percentage" means 80 percent for a taxable year described in subdivision
31	31	2.22, paragraph (b), and 50 percent for a taxable year described in subdivision 2, paragraph
32	32	2.3(c).
33	33	2.4 (c) "Qualified publisher" means a publisher that:
34	34	2.5 (1) is not an organization described in paragraph (4), (5), or (6) of section 501(c) of the
35	35	2.6Internal Revenue Code;
36	36	2.7 (2) is not a political organization, as defined in section 527(e) of the Internal Revenue
37	37	2.8Code;
38	38	2.9 (3) is not any organization controlled by one or more organizations described in clause
39	39	2.10(1) or (2);
40	40	2.11 (4) is not any organization that received more than $100,000 in the aggregate from
41	41	2.12organizations described in clauses (1) to (3) in a taxable year; or
42	42	2.13 (5) does not meet the requirements under clauses (1) to (4) for any period beginning one
43	43	2.14year before the date of enactment of this section and the date on which a qualifying local
44	44	2.15media advertising expense is paid or incurred.
45	45	2.16 (d) "Local news journalist" means any individual who regularly gathers, prepares,
46	46	2.17produces, collects, edits, photographs, records, directs the recording of, writes, presents, or
47	47	2.18reports news or information that concerns local events or other matter of local public interest.
48	48	2.19 (e) "Local newspaper" means any print or digital publication if:
49	49	2.20 (1) the primary content of the publication is original content derived from primary sources
50	50	2.21and relating to news and current events in Minnesota;
51	51	2.22 (2) the publication primarily serves the needs of a regional or local community in this
52	52	2.23state;
53	53	2.24 (3) the publisher of the publication:
54	54	2.25 (i) employs at least one full-time local news journalist who resides in the regional or
55	55	2.26local community;
56	56	2.27 (ii) employs not more than 750 employees, of which greater than half are employed in
57	57	2.28Minnesota; and
58	58	2.29 (iii) is a qualified publisher.
59	59	2.30 (f) "Qualifying local media advertising expenses" means any trade or business expense
60	60	2.31deductible under section 162 of the Internal Revenue Code for:
61	61	2Sec. 3.
62	62	25-04271 as introduced03/03/25 REVISOR EAP/VJ 3.1 (1) advertising in a local newspaper; or
63	63	3.2 (2) advertising on any broadcast radio or television station licensed by the Federal
64	64	3.3Communications Commission to serve a local community.
65	65	3.4For purposes of this paragraph, "advertising" includes sponsorships.
66	66	3.5 (g) "Qualifying taxpayer" means a taxpayer employing an average of less than 50 full-time
67	67	3.6employees a taxable year, as determined under section 4980H(c)(2) of the Internal Revenue
68	68	3.7Code.
69	69	3.8 Subd. 2.Credit allowed.(a) A qualifying taxpayer is allowed a credit against the tax
70	70	3.9due under this chapter equal to the applicable percentage of the qualifying local media
71	71	3.10advertising expenses paid by the qualifying taxpayer in a taxable year.
72	72	3.11 (b) For taxable years beginning after December 31, 2024, and before January 1, 2026,
73	73	3.12the amount of the credit allowed under paragraph (a) must not exceed $5,000.
74	74	3.13 (c) For taxable years beginning after December 31, 2025, the amount of the credit allowed
75	75	3.14under paragraph (a) must not exceed $2,500.
76	76	3.15 Subd. 3.Limitation; carryover.The credit must not exceed the liability for tax under
77	77	3.16this chapter. If the amount of the credit allowed exceeds the liability for tax of the taxpayer,
78	78	3.17the excess is a local advertising credit carryover to each of the five succeeding taxable years.
79	79	3.18The entire amount of the excess unused credit for the taxable year must be carried first to
80	80	3.19the earliest of the taxable years to which the credit may be carried and then to each successive
81	81	3.20year to which the credit may be carried. The amount of the unused credit that may be added
82	82	3.21under this clause must not exceed the taxpayer's liability for tax under this chapter less the
83	83	3.22local advertising credit for the taxable year.
84	84	3.23 Subd. 4.Partnerships; multiple owners.Credits granted to a partnership, a limited
85	85	3.24liability company taxed as a partnership, or an S corporation are passed through to the
86	86	3.25partners, members, or shareholders, respectively, pro rata to each partner, member, or
87	87	3.26shareholder based on their share of the entity's assets or as specially allocated in their
88	88	3.27organizational documents or any other executed agreement, as of the last day of the taxable
89	89	3.28year.
90	90	3.29 Subd. 5.Expiration.The credit under this subdivision expires January 1, 2029, for
91	91	3.30taxable years beginning after December 31, 2028.
92	92	3.31 EFFECTIVE DATE.This section is effective for taxable years beginning after December
93	93	3.3231, 2024.
94	94	3Sec. 3.
95	95	25-04271 as introduced03/03/25 REVISOR EAP/VJ