General subtraction amount increased, and combined cap on the subtractions for qualified small business property and qualified farm property increased.

HF 2045 increases Minnesota's estate tax exemption threshold to $6 million for estates of decedents dying after June 30, 2025, and raises the combined deduction limit for qualified small business and farm property from $5 million to a new cap. This directly affects estate owners who own small businesses or farmland, allowing them to deduct more value from their taxable estate. The bill amends Minnesota Statutes sections 289A.10 and 291.016 to implement these changes, with the higher deduction cap applying only to the combined value of eligible business and farm assets. The effective date is set for estates closing after June 30, 2025.