The 2023 legislative session resulted in a number of changes to Minnesota’s tax code, including some that affect previous tax years. At this time, you should not amend any Minnesota returns solely to account for these changes. Major changes are summarized below.


Individual Income Tax

Conformity to Internal Revenue Code
Net Investment Tax
Public Pension Income Subtraction
Sexual Harassment or Abuse Settlements
Social Security Income Subtraction
Standard and Itemized Deduction Limitation Changes
Student Loan Discharge
Unemployment Compensation Subtraction
Taxpayer Receipt
Withholding Rate for Pensions and Annuities

Tax Credits for Individuals

Angel Investment Credit
Child Tax Credit
Dependent Care Credit – Newborn Credit
K-12 Education Credit
Tax Credit for Military Service
Modified Working Family Credit

Tax Rebates and Refunds

Direct Tax Rebate Payments
Electric-Assisted Bicycle Rebates
Political Contribution Refund
Property Tax Refunds


Business Income Tax

Cannabis Income Tax Subtraction
Composite Income Tax and Pass-Through Entity Tax Recodification
Conformity to Internal Revenue Code
Corporate Net Operating Loss (NOL) Limit
Dividends Received Deduction (DRD)
Global Intangible Low-Taxed Income (GILTI)
Nonresident Withholding Tax Refunds
Pass-Through Entity Tax

Tax Credits for Businesses

Film Production Tax Credit
Historic Structure Rehabilitation Tax Credit
Manufactured Home Parks Credit
Owners of Agricultural Assets Tax Credit (Beginning Farmer Program)
Short Line Railroad Infrastructure Modernization Tax Credit
Sustainable Aviation Fuel Tax Credit

Cannabis Tax

A recent law change legalizes adult-use cannabis in Minnesota and establishes a new Cannabis Tax. Sellers of taxable cannabis products must register and remit the new tax – along with state and local sales taxes – starting July 1, 2023. This includes sellers of previously legal cannabinoid products. For more information, see Cannabis Tax.

For details about the cannabis law, visit the Minnesota Office of Cannabis Management website.

We will share updated guidance and tax forms for affected tax years as soon as they are available, generally in early fall. Contact our CDS experts at (888) 388-1040 with any questions you may have.