Bill > HF1445

This bill modifies the income and corporate franchise tax research credit in Minnesota. The key provisions are: 1) The credit is increased from 10% to 6% on all qualified research expenses over the base amount for taxpayers who elect to use the alternative simplified credit method, which calculates the base amount as 50% of the average qualified research expenses for the previous three years. 2) The definition of "qualified research expenses" is clarified to exclude expenses incurred for research conducted outside of Minnesota. 3) The definition of "base amount" is modified to provide an alternative calculation for taxpayers who elect to use the alternative simplified credit method. 4) Taxpayers can revoke the alternative simplified credit election, but are then precluded from making the election again for the next five tax years. These changes are effective for tax years beginning after December 31, 2018.