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    3                                                   FINAL DRAFT 10/2/23                                                                                                                                                    3
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    6                                                                                                                                                                                           *237311*                       6
    7                                                                                                                                                                                                                          7
    8                                                                                                                                                                                                                          8
       2023 KPC, Partner’s Share of Income, Credits  
    9                                                                                                                                                                                                                          9
    10 and Modifications                                                                                                                                                                                                       10
       Partnership: Complete and provide Schedule KPC to each corporate or partnership partner. For individual, estate and trust partners, use Schedule KPI instead.
    11                                                                                                                                                                                                                         11
    12                                                                                                                                                                                                                         12
    13 Tax year beginning (MM/DD/YYYY)     MM  /    DD     /YYYY   and ending (MM/DD/YYYY)         MM  /    DD     /                                                                         YYYY         Amended KPC:  X      13
    14                                                                                                                                                                                                                         14
    15 1234567890                                                                  0123456789                                                                                                      0123456789                  15
    16 Partner’s Federal ID Number                                                 Parternship’s Federal ID Number                                                                                 Partnership’s Minnesota ID  16
    17 PARTNER’S NAME                                                              PARTNERSHIP’S NAME                                                                                                                          17
    18 Partner’s Name                                                              Partnership’s Name                                                                                                                          18
    19 MAILING ADDRESS                                                             MAILING ADDRESS                                                                                                                             19
    20 Mailing Address                                                             Mailing Address                                                                                                                             20
    21 CITYXXXXXXXXXX MN     XXXXX                                                 CITY                                                                                                      MN     12345                      21
    22 City                           State        ZIP Code                        City                                                                         State                                     ZIP Code             22
    23                                                                                                                                                                                                                         23
    24 Entity of Partner   X          S Corporation X       C Corporation X        Exempt X     Partnership Partner’s Distributiv                                                                   e                          24
    25 (check one box):                                                            Organization             Share:                                                                           XXXXXXX      %                    25
    26                                                                                                                                                                                                                         26
    27                                                                                                             Round amounts to the nearest dollar.                                                                        27
    28 Corporate and Partnership Partners                                                                                                                                                                                      28
    29   1  Nonapportionable Minnesota source income         . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . .  .    1            0123456789                  29
    30                                                                                                                                                                                                                         30
    31   2   Total nonapportionable income   . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . 2       0123456789                  31
    32                                                                                                                                                                                                                         32
    33   3  Partnership’s minimum fee  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . .  . 3    0123456789                  33
    34                                                                                                                                                                                                                         34
    35   4  Interest income exempt from federal tax  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . .  . 4              0123456789                  35
    36                                                                                                                                                                                                                         36
    37   5  State taxes deducted in arriving at partnership’s net income   .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . 5                             0123456789                  37
    38   6  Expenses deducted that are attributable to income not taxed by Minnesota                                                                                                                                           38
    39      (other than interest or mutual fund dividends from U.S. bonds)    . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . .  . 6                                 0123456789                  39
    40                                                                                                                                                                                                                         40
    41   7   100% of partner’s distributive share of federal bonus depreciation  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . .  . 7                                  0123456789                  41
    42                                                                                                                                                                                                                         42
    43   8  Foreign-derived intangible income (FDII) deduction  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . 8                       0123456789                  43
    44                                                                                                                                                                                                                         44
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    46                                                                                                                                                                                                                         46
    47   10a Partner’s pro rata gross profit from installment sales of pass-through  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . .  . 10a                                     0123456789                  47
    48       businesses (see instructions)                                                                                                                                                                                     48
    49   10b Partner’s pro rata installment sale income from pass-through . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  .  . 10b                                0123456789                  49
    50       businesses (see instructions)                                                                                                                                                                                     50
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    57  14  This line intentionally left blank   . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . .  . 14                                57
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    59  15  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . .  . 15                                59
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    61  16  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . .  . 16                                61
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    63                                                                     9995                                                                                                                                                63
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    1                                                                                                                                                                                                                                    1
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    3                                                    FINAL DRAFT 10/2/23                                                                                                                                                             3
    4                                                                                                                                                                                                                                    4
       2023 KPC, page 2
    5                                                                                                                                                                                                                                    5
    6                                                                                                                                                                                                *237321*                            6
    7                                                                                                                                                                                                                                    7
    8  PARTNER’S NAMEXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX                                                                                                                                                     0123456789                      8
    9  Partner’s Name                                                                                                                                                                                    Partner’s Federal ID Number     9
    10 PARTNERSHIP NAMEXXXXXXXXXXXXXXXXXXXXXXXXXXXXX                                                                                                                                                     0123456789                      10
    11 Partnership’s Name                                                                                                                                                                                Partnership’s Federal ID Number 11
    12                                                                                                                                               Round amounts to the nearest dollar.                                                12
    13  17 Interest from U.S. government bond obligations, minus any expenses                                                                                                                                                            13
    14     deducted on the federal return that are attributable to this income . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . .  . 17                                           0123456789                      14
    15                                                                                                                                                                                                                                   15
    16  18 Deferred foreign income (section 965)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . .  . 18                    0123456789                      16
    17                                                                                                                                                                                                                                   17
    18  19 Disallowed section 280E expenses of a licensed cannabis business . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . .  . 19                                            0123456789                      18
    19                                                                                                                                                                                                                                   19
    20  20  State income tax refund included in income     . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . .  . 20                        0123456789                      20
    21                                                                                                                                                                                                                                   21
    22  21  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . .  . 21          0123456789                      22
    23                                                                                                                                                                                                                                   23
    24  22  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . .  . 22                                          24
    25                                                                                                                                                                                                                                   25
    26  23  Housing Tax Credit   . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  .  . 23  0123456789                      26
    27                                                                                                                                                                                                                                   27
    28     Enter certificate number from Minnesota Housing: SHTC - 0123  45678900000                                                                                                                                                     28
    29                                                                                                                                                                                                                                   29
    30  24  Short Line Railroad Infrastructure Modernization Credit   . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . 24                                 0123456789                      30
    31                                                                                                                                                                                                                                   31
    32  25  Credit for Sales of Manufactured Home Parks to Cooperatives  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . 25                                         0123456789                      32
    33                                                                                                                                                                                                                                   33
    34  26  Credit for increasing research activities  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . .  . 26                 0123456789                      34
    35                                                                                                                                                                                                                                   35
    36  27  Film Production Tax Credit  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . .  . 27        0123456789                      36
    37                                                                                                                                                                                                                                   37
    38     Enter the credit certificate number: TAXC -  0123456789                                                                                                                                                                       38
    39                                                                                                                                                                                                                                   39
    40  28 Tax Credit for Owners of Agricultural Assets . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . 28                       0123456789                      40
    41     Enter the certificate number from the certificate received from the Rural Finance Authority:                                                                                                                                  41
    42                                                                                                                                                                                                                                   42
    43     AO   0123   45678900000                                                                                                                                                                                                       43
    44                                                                                                                                                                                                                                   44
    45  29  Credit for historic structure rehabilitation  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  .  . 29                  0123456789                      45
    46                                                                                                                                                                                                                                   46
    47     National Park Service (NPS) number   0123456789                                                                                                                                                                               47
    48                                                                                                                                                                                                                                   48
    49  30  Employer Transit Pass Credit  . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  .  . 30          0123456789                      49
    50                                                                                                                                                                                                                                   50
    51  31  Enterprise Zone Credit    . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . 31    0123456789                      51
    52                                                                                                                                                                                                                                   52
    53  32  Minnesota backup withholding    . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . .  . 32               0123456789                      53
    54 Apportionment Information (partner’s share)                                                                                                                                                                                       54
    55  33 Pro Rata Share MN Source Gross Income  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . .  . 33                        0123456789                      55
    56                                                                                                                                    Property                                                              Sales                    56
    57                                                                                                                                                                                                                                   57
    58  34  Minnesota   . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . .  . 34   0123456789                                                             0123456789                      58
    59                                                                                                                                                                                                                                   59
    60  35  Everywhere    . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  .  . 35   0123456789                                                             0123456789                      60
    61 Partnership: Include this schedule and copies of federal Schedules K and K-1 with your Form M3.                                                                                                                                   61
    62 Partner: Include this schedule when you file your Form M3, M4 or M8.                                                                                                                                                              62
    63                                                                      9995                                                                                                                                                         63
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    65                                                                                                                                                                                                                                   65

                                              FINAL DRAFT 10/2/23
2023 Schedule KPC Instructions

Purpose of Schedule KPC
Schedule KPC is a supplemental schedule for partners who are corporations or partnerships.
The partnership listed on the front of this schedule has provided you with a completed schedule that reflects your specific share of the 
partnership’s income, credits and modifications. You will need this information to complete Form M4,Corporation Franchise Tax Return, 
Form M8, S Corporation Return, or Form M3, Partnership Return, and you must include this schedule when you file your return. If the 
schedule is not included, the department will disallow any credits and assess the tax or reduce your refund.  
These instructions are intended to help you report your share of the partnership’s income, credits and modifications on your Minnesota return.
There may be other items that a corporate partner would need to know in order to complete its corporate franchise tax return. If applicable, 
the partnership should pass that information through to you.
If you received an amended Schedule KPC from the partnership and your income or deductions have changed, you must file an amended 
Minnesota return. 
To file an amended return, use one of the following:
•  Form M4X, Amended Franchise Tax Return, if you are a corporate partner.
•  Form M8X, Amended S Corporation Return, if you are an S corporation partner. 
•  Form M3X, Amended Partnership Return, if you are a partnership partner.

Sale of a Partnership Interest
Income from the sale of a partnership interest by an entity that is domiciled in another state is assignable to Minnesota. To determine the 
amount assigned to Minnesota, divide the original cost of the partnership’s tangible property within Minnesota by the original cost of all 
tangible property of the partnership. If you don’t have these numbers, contact the partnership.
If more than 50 percent of the value of the partnership’s assets are intangibles, the gain/loss is allocated to Minnesota using the partnership’s 
prior year sales factor.

Line Instructions
Line 1 — Nonapportionable Minnesota Source Income
C corporations: Include this amount on Form M4T, line 4a.
S corporations: Use this amount to help determine your Minnesota taxable income.
Partnerships: Use this amount to help determine your Minnesota taxable income.
Line 2 — Total Nonapportionable Income
C corporations: Include this amount on Form M4I, line 8.
S corporations: Not applicable.
Partnerships: Pass this information through, pro rata, to any corporate or partnership partners on Schedule KPC, line 2. This line does not 
apply to individual, estate or trust partners.
Line 3 — Partnership’s Minimum Fee
C corporations: Include this amount on Form M4I, line 2a.
S corporations: Not applicable.
Partnerships: Pass this amount through, pro rata, on Schedule KPC, line 3, to your corporate and partnership partners. Line 3 does not apply 
to individual, estate or trust partners. 
Line 4 — Exempt Interest Income
C corporations: Include this amount on Form M4I, line 2c.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 1. Exclude any interest income from Minnesota 
state and municipal bonds.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 1, or KPC, line 4.
Line 5 — State Income Tax Deducted
C corporations: Include this amount on Form M4I, line 2a.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 2.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 2, or KPC, line 5.
Line 6 — Expenses Attributable to Exempt Income 
C corporations: Not applicable.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 3.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 3, or KPC, line 6.
Line 7 — Federal Bonus Depreciation
C corporations: Include this amount on Form M4I, line 2g. 
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 4.                Continued                    1
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 4, or KPC, line 7.

                                         FINAL DRAFT 10/2/23
2023 Schedule KPC Instructions (Continued)

Line 8 — Foreign-Derived Intangible Income (FDII) Deduction
C corporations: Not applicable.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 5.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 5, or KPC, line 8.
Line 9
This line is intentionally left blank.
Lines 10a and 10b — Accelerated Installment Sale Gains 
S corporations receiving Schedules KPC with positive values on lines 10a or 10b are required to check the “Installment Sale of Pass-through 
Assets or Interests” box on page 1, of Minnesota Form M8, and must report the full amount of gross installment sale gain, and installment 
sale income, pro-rata to its shareholders on Schedules KS.
Partnerships receiving Schedules KPC with positive values on lines 10a or 10b are required to check the “Installment Sale of Pass-through 
Assets or Interests” box on page 1, of Minnesota Form M3, and must report the full amount of gross installment sale gain, and installment 
sale income, to each partner to whom the gains and income are allocated on Schedules KPC or KPI.
C corporations receiving Schedules KPC with positive values on lines 10a or 10b should disregard this information.
Lines 11 through 16
These lines are intentionally left blank.
Line 17 — Net Interests on U.S. Bonds
C corporations: Not applicable
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 14.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 14, or KPC, line 17.
Line 18 – Deferred Foreign Income (Section 965)
C corporations: Include this amount on Form M4I, line 4l. 
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 15. 
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 15, or KPC, line 18.
Line 19 – Disallowed Section 280E Expenses of a Licensed Cannabis Business
C corporations: Include this amount on Form M4I, line 4m.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 16. 
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 16, or KPC, line 19.
Line 20 – State Income Tax Refund Included in Income
C corporations: Include this amount on Form M4I, line 4a
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 18.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 18, or KPC, line 20.
Lines 21 and 22
These lines are intentionally left blank.
Line 23 – Housing Tax Credit
C corporations: Include this amount on Form M4T, line 14.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 21.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 21, or KPC, line 23. 
Line 24 – Short Line Railroad Infrastructure Modernization Credit
C corporations: Include this amount on Form M4T, line 15.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 22.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 22, or KPC, line 24. 
Line 25 – Credit for Sales of Manufactured Home Parks to Cooperatives
C corporations: Include this amount on Form M4T, line 16.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 23.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 23, or KPC, line 25.
Line 26 — Credit for Increasing Research Activities
C corporations: Include this amount on Schedule RD, line 30.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 24.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 24, or KPC, 26.

                                                                                                                  Continued               2

                                    FINAL DRAFT 10/2/23
2023 Schedule KPC Instructions (Continued)

Line 27 — Film Production Tax Credit
C corporations: Include this amount and the credit certificate number on Form M4T, line 22.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 25 and include the credit certificate number.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 25, or KPC, line 28. Include the credit certificate 
number.
Line 28 — Tax Credit for Owners of Agricultural Assets
C corporations: Include this amount on Form M4T, line 23.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 26.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 26, or KPC, line 28.
Line 29 — Historic Structure Rehabilitation Credit 
C corporations: Include this amount and the NPS project number on Form M4, line 5.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 27 and include the NPS project number.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 27 or KPC, line 29 and include the NPS project number.
Line 30 — Employer Transit Pass
C corporations: Include this amount on Form M4T, line 24.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 28. You must enclose a copy of this schedule 
even if you are passing the credit through to your shareholders.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 28 or KPC, line 30. You must enclose a copy of this 
schedule even if you are passing the credit through to your partners.
Line 31 — Enterprise Zone Credit
C corporations: Include this amount on Form M4, line 4.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 29. You must enclose a copy of this schedule 
even if you are passing the credit through to your shareholders.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 29 or KPC, line 31. You must enclose a copy of this 
schedule even if you are passing the credit through to your partners.
Line 32 — Minnesota Backup Witholding
C corporations: Include this amount on Form M4, line 6.
S corporations: Pass this information through, pro rata, to shareholders on Schedule KS, line 31. You must enclose a copy of this schedule 
even if you are passing the withholding credit through to your shareholders.
Partnerships: Pass this information through, pro rata, to partners on Schedule KPI, line 31, or KPC, line 32. You must enclose a copy of this 
schedule even if you are passing the credit through to your partners. 

Apportionment Factors
Line 33 — Minnesota Source Gross Income
Minnesota source gross income is used to determine whether an eventual nonresident partner has a filing requirement with the state of 
Minnesota. This line will help tiered partnerships determine their Minnesota source gross income.
Minnesota source gross income is the total of the amounts apportioned to Minnesota that are included on lines 3, 6, and 7 (other than losses) 
of federal Form 1065; lines 18a, 19 and 20 (other than losses) of federal Form 8825; line 9 of Schedule F; lines 3a, 5, 6a, 7, 8, 9a, 10 and 
11 of Schedule K (Form 1065); plus Minnesota source gross income from other partnerships, estates, and trusts which the entity may be a 
partner or beneficiary. 
Line 34 and 35 — Apportionment Information
The apportionment factors are used to determine the Minnesota apportioned income. 
If the partnership and partner are considered unitary under Minnesota Statutes 290.17, subd. 4, [disregarding paragraph (e) (50 percent 
indirect or direct ownership needed for unity of ownership)] these factors are included with the partners’ own factors in determining the 
income apportioned to Minnesota on the partner’s supplemental schedule. (The supplemental schedule is Form M4A for corporation 
partners, M8A for S corporation partners, or M3A for partnership partners.) The partner’s entire income is then multiplied by the partner’s 
apportionment ratio to determine the Minnesota portion of its income.
If the partner is not unitary with the partnership, it will use only these factors to calculate the Minnesota apportionment ratio to be used in 
determining the Minnesota source income from that K-1. It will be the same ratio as the partnership’s Minnesota apportionment ratio, and 
it will be multiplied by the K-1 income to determine the Minnesota portion of income from that partnership. Report nonunitary partnership 
income on line 4b of the M4T.

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