Gov. Walz signs tax bill — PTET extension included
May 28, 2026 | Geno Fragnito
On May 27, 2026, Gov. Tim Walz signed
HF 2438 — the tax bill — into law.
The good news is that after months of emails, calls and conversations from MNCPA members, a pass-through entity tax election extension was included in the bill. The unwelcome news is the extension is only for two years — through Dec. 31, 2027.
I’ve received many calls and emails since the Legislature passed the bill inquiring about whether personal Q1 estimated payments can be transferred to the entity.
The short answer is no.
The new law does not permit the transfer of individual estimated payments to the pass-through entity. The extension only allows the first entity estimated payment for the PTET to be made at the same time as the second.
To receive a refund of the overpayment, individual taxpayers must file their 2026 tax return when filing opens for next filing season.
There also seems to be conflicting information on search engines about whether PTET passed. The conflicting information is a result of search engines not being able to accurately follow the behind-the-scenes flow of the legislative process. While the internet can expedite information gathering, this is a friendly reminder that the information you find may not always be accurate.
This is why I always welcome direct questions from members. While I may not always know the answers right away, it gives the MNCPA staff and me a pulse of how best to address these gaps. This post is a result of this direct outreach. Feel free to email me at
gr@mncpa.org.
See the tax bill summary
Topics: Legislative & Government Affairs, Taxation-Business
Geno Fragnito
Geno Fragnito is the MNCPA government relations director, advocating on behalf of the CPA profession. His days consist of last-minute meeting changes, building relationships with lawmakers, helping CPAs navigate state government, and putting in more than 15,000 steps per day walking the halls of the Capitol. Geno unwinds with a little golf and traveling with his family. If he weren’t a lobbyist, Geno would perfect his cast and be a professional fisherman. Geno can be reached at 952-885-5550 or gfragnito@mncpa.org.
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