Section

Provision

1

Paragraph (a) retains the $1.2 million current law exclusion amount for the Minnesota taxable estate for decedents dying in 2014.  The lesser of $5 million - $1.2 million, or the value of qualified small business and qualified farm property may be subtracted for purposes of calculating the Minnesota taxable estate.  

Paragraph (b) increases the amount from which the exclusion is subtracted from $5 million to $5.43 million, beginning with estates of decedents dying in 2015.  The $5.43 million amount is the federal estate tax exclusion for 2015 (reflecting the annual inflation adjustment of the $5 million exclusion).  As under current law, the exclusion amount is increased by $200,000 per year until 2018, when the exclusion amount reaches $2 million.