Minnesota bill imposes additional taxes on corporations with high executive-to-worker pay ratios and disqualifies them from state grants.

Minnesota HF1041 amends corporate franchise tax rates by imposing additional taxes on corporations with high executive-to-worker pay ratios. The tax rate increases incrementally based on the pay ratio, ranging from 0.2% for ratios between 50:1 and 100:1, to 1.5% for ratios of 500:1 or higher. Corporations subject to these additional taxes are also disqualified from receiving state grants. The changes take effect for taxable years beginning after December 31, 2025, and for grants starting January 1, 2026.

Minnesota bill imposes additional taxes on corporations with high executive-to-worker pay ratios and disqualifies them from state grants.

Minnesota HF1041 amends corporate franchise tax rates by imposing additional taxes on corporations with high executive-to-worker pay ratios. The tax rate increases incrementally based on the pay ratio, ranging from 0.2% for ratios between 50:1 and 100:1, to 1.5% for ratios of 500:1 or higher. Corporations subject to these additional taxes are also disqualified from receiving state grants. The changes take effect for taxable years beginning after December 31, 2025, and for grants starting January 1, 2026.