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Revised for the February 2018 Forecast
Federal Update: The Tax Cuts and Jobs Act of 2017
Individual Income Tax
Property Tax Refund
Unrelated Business Income Tax
Corporate Franchise Tax
General Fund Total
NOTE: This document is an estimate of the impact of adopting recent changes to the Internal Revenue Code
with no corresponding Minnesota tax policy changes.
Because changes to Minnesota tax rates and other tax policies are likely to be considered in response to the
federal changes, this estimate should be considered a starting point for policy discussions rather than a policy
proposal. Depending on the final combination of federal update and policies ultimately enacted by the
legislature and Governor, there may be additional effects on Minnesota tax liability and Minnesota
withholding amounts that are not reflected in this estimate. For example, withholding tax collections may
change because of the modifications to the standard deduction and suspension of personal exemptions, but
this estimate does not include any shift in withholding because the final impact depends on the timing of
enactment and the full package of policy changes.
Public Law 115-97, known as the Tax Cuts and Jobs Act (TCJA), was enacted on December 22, 2017. This
estimate shows the fiscal impact of updating references to the Internal Revenue Code to December 22, 2017.
The TCJA included provisions that change the definition of federal taxable income. These changes, such as
the suspension of deductions or exclusions, increase federal taxable income. These changes are included in
this estimate because federal taxable income is the starting point for Minnesota taxable income.
The TCJA also included features such as federal rate changes or credits. Many of these provisions re