Bill > HF277

This bill modifies the research tax credit in Minnesota. It amends the existing law to include a new option for taxpayers to calculate the base amount for the credit using 50% of the average qualified research expenses for the three preceding taxable years, instead of the standard base amount calculation. This alternative simplified credit election can be made on the original tax return and revoked without approval, but the taxpayer is then precluded from making the election for the next five taxable years. The bill also clarifies that the research credit applies to qualified research expenses incurred within Minnesota, and makes other technical changes to the definitions and application of the credit.