This bill amends Minnesota Statutes 2024, section 290.068, to modify the research credit related to income and corporate franchise tax. It introduces new definitions for "qualified research expenses," "qualified research," and "base amount," while clarifying that qualified research conducted outside Minnesota is excluded from the credit. The bill specifies that the "base amount" for taxpayers can be calculated using either the standard method or an alternative simplified credit election, which allows taxpayers to base their credit on 50% of their average qualified Minnesota research expenses from the previous three taxable years.

Additionally, the bill establishes a new subdivision, 2a, which allows corporations, partnerships, or other taxpayers to elect the alternative simplified credit method when filing their tax returns. This election is irrevocable for the taxable year and must be made by partnerships on their returns, applying to all partners. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.068