Minnesota Statutes Various State Taxes and Programs (Ch. 289A-295) § 290.9729. Tax on passive investment income

(1) subchapter C earnings and profits at the close of such taxable year; and

(2) gross receipts more than 25 percent of which are passive investment income.

The tax is imposed at the rate prescribed bysection 290.06, subdivision 1. The terms “subchapter C earnings and profits,” “passive investment income,” and “gross receipts” have the same meanings as when used insections 1362(d)(3)and1375 of the Internal Revenue Code. 1

(1) the amount of the S corporation's excess net passive income, as determined undersection 1375 of the Internal Revenue Code, subject to the provisions ofsections 290.0133to290.0135, that is allocable to this state undersection 290.17,290.191, or290.20; or

(2) the amount of the S corporation's federal taxable income, as determined undersection 1374(d)(4) of the Internal Revenue Code, subject to the provisions ofsections 290.0133to290.0135, that is allocable to this state undersection 290.17,290.191, or290.20.