Reduced rate provision for certain corporations

This bill establishes a reduced 5% franchise tax rate for Minnesota corporations meeting a specific pay ratio standard. An "eligible corporation" must have a pay ratio (comparing average compensation of the top five executives to the lowest-paid 5% of employees) of 15:1 or less in the previous year. The reduced rate applies to taxable years beginning after December 31, 2025, and amends sections of Minnesota's tax code to define key terms like "pay ratio" and "eligible corporation." It directly affects corporations that meet this pay equity threshold, offering a lower tax rate while maintaining other tax provisions.