UPDATE: Minnesota Pass-Through Entity Tax Extended Through 2027
On May 27, 2026, Governor Tim Walz signed legislation extending the Minnesota pass-through entity tax (PTET) through December 31, 2027. Prior to this extension, and as contemplated in our previous alert, Minnesota's PTET law expired on December 31, 2025. The new legislation makes it clear that the Minnesota PTET law has been extended retroactively to January 1, 2026. In addition, the legislation does not reduce the tax benefits available to those making the PTET election, as had been proposed in other jurisdictions.
The legislation also provides relief related to the first-quarter 2026 estimated PTET payment deadline. Normally, a business making a PTET election is required to make four equal, on-time estimated tax payments; however, at the time the legislation was enacted, the first quarter 2026 estimated tax payment deadline of April 15, 2026 (for calendar-year filers) had already passed. The legislation provides that the first-quarter estimated PTET payment is considered timely if paid by the second quarter estimated PTET payment due date (i.e., June 15, 2026, for calendar-year filers).
The Minnesota Department of Revenue announced that it is currently reviewing these law changes and their impact on taxpayers and will update its website as more information is available.
Additional information is available on the Minnesota Department of Revenue's Tax Law Changes webpage.
For more information on Minnesota's extension of the pass-through entity tax, please contact Charley Jensen, David Jenson, Thomas Molins, Jay Simpson, Charles Hutchison, Molly Maurin or the Stinson LLP contact with whom you regularly work.
