Bill > SF996

This bill modifies the income and corporate franchise tax research credit in Minnesota. The key provisions of the bill are: 1. It increases the credit rate from 10% to 6% on all qualified research expenses over the base amount for taxpayers who elect the alternative simplified credit method. 2. It allows taxpayers to elect the alternative simplified credit method, which calculates the base amount as 50% of the average qualified research expenses for the three preceding tax years, rather than the regular formula based on the taxpayer's historical spending. 3. The changes are effective for tax years beginning after December 31, 2018. The bill is intended to simplify the calculation of the research and development tax credit and provide a higher credit rate for companies that choose the alternative method.