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." Notably, the definition of "base amount" is expanded to include two clauses: the first for taxpayers not subject to the alternative simplified credit election, and the second for those who have made such an election, allowing them to calculate their base amount as 50 percent of the average qualified Minnesota research expenses for the three preceding taxable years. Additionally, the bill clarifies that contributions to nonprofit corporations aimed at promoting business in Minnesota can be included as qualified research expenses.

Furthermore, the bill adds a new subdivision, 2a, which allows corporations, partnerships, or other taxpayers to elect an alternative simplified credit calculation for their base amount. This election must be made at the time of filing the return and is irrevocable for that taxable year. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.068