1.1    .................... moves to amend H. F. No. 2058 as follows:
1.2Page 2, delete section 3
1.3Page 2, line 16, after "Code" insert "and which has subpart F income, as defined in
1.4section 952 of the Internal Revenue Code, for the taxable year"
1.5Page 4, line 1, delete "would be taxable under section 952" and insert "constitute
1.6foreign personal holding company income as defined in section 954(c)"
1.7Page 4, delete line 2
1.8Page 4, line 3, delete "section 957 of the Internal Revenue"
1.9Page 9, after the period insert "For a controlled foreign corporation, as defined in
1.10section 957 of the Internal Revenue Code, that is a domestic corporation for the taxable
1.11year under section 290.01, subdivision 5, its income and apportionment factors for the
1.12taxable year must be multiplied by a fraction not to exceed one, the numerator of which is
1.13the subpart F income of the corporation, as defined in section 952 of the Internal Revenue
1.14Code, for the taxable year and the denominator of which is the earnings and profits of the
1.15corporation, as defined in section 964 of the Internal Revenue Code, for the taxable year."
1.16Page 10, line 13, after the period insert "Each member of the unitary business must
1.17make the election under this subdivision for the election to be effective."
1.18Page 10, after line 28, insert:
1.19    "(e) Notwithstanding the requirements of paragraph (b), an election under this
1.20subdivision is revoked for the current taxable year if one of the following occurs:
1.21    (1) 50 percent or more of the voting stock of the electing corporation is acquired by
1.22a nonaffiliated corporation, which has not made an election under this subdivision; or
1.23    (2) if the corporation is completely liquidated during the taxable year, its election
1.24does not carry over to the corporation receiving its assets; or
1.25    (3) the corporation acquires 50 percent or more of the stock of a nonaffiliated
1.26corporation (or corporations), which has not made an election under this subdivision and
1.27which has Minnesota taxable net income for the previous taxable year that equals or
2.1exceeds 20 percent of the Minnesota taxable net income of the unitary business, and each
2.2member of the unitary business elects, in a form prescribed by the commissioner, to
2.3revoke its election under this subdivision.
2.4    (f) If a corporation with an election in effect for the taxable year acquires 50 percent
2.5or more of the stock of a nonaffiliated corporation, which has not made an election under
2.6this subdivision, and the unitary business does not revoke the election under paragraph (e),
2.7clause (3), or does not qualify to revoke to the election under paragraph (e), clause (3), the
2.8acquired corporation is deemed to have made an election under this subdivision for the
2.9term of the election of the unitary business."
2.10Renumber the sections in sequence and correct the internal references
2.11Amend the title accordingly