05/26/2026
Minnesota business owners: there’s good news in the new state tax bill 👇
✅ The Pass-Through Entity Tax (PTET) has been extended through 2027.
What does that actually mean?
For many S Corporations and Partnerships, this is a tax-saving option that may help reduce the impact of federal tax deduction limits by allowing state taxes to be paid through the business instead of personally.
The new bill also includes:
➡️ The extension applies retroactively starting January 1, 2026
➡️ Penalties may be waived for missed Q1 2026 estimated payments if the Q2 payment is made on time
While this doesn’t apply to every business, it could create valuable tax planning opportunities for many Minnesota business owners.
Not sure if PTET applies to you? Our team can help you understand your options and plan ahead.