Corporations with high principal executive officer additional tax imposed to median worker pay ratios, and companies disqualified from receiving state subsidies and grants.

HF 1041 imposes an additional tax on Minnesota corporations with high executive-to-median-worker pay ratios, ranging from 0.2% to 1.5% based on the ratio tier (e.g., 0.2% for 50:1 to 100:1 ratios). It directly affects corporations meeting specific pay ratio thresholds, using the federal disclosure standard (17 CFR § 229.402(u)(1)(iii)) to calculate the ratio. The bill also disqualifies these corporations from receiving state grants or subsidies, as specified in amended Minnesota Statutes sections 16B.981 and 290.06. The tax applies to taxable years beginning after December 31, 2025, with disqualification effective January 1, 2026.