Bill > SF930

This bill modifies the research credit under the Minnesota income and corporate franchise tax. The key provisions are: 1. It allows a tax credit equal to 10% of the first $2 million in qualified research expenses over the base amount, 4% on the remaining qualified research expenses over $2 million, or 6% on all qualified research expenses over the base amount for taxpayers with a valid alternative simplified credit election. 2. It defines "qualified research expenses" to include expenses incurred for qualified research conducted in Minnesota, and it defines the "base amount" as either the standard definition under the Internal Revenue Code or 50% of the average qualified research expenses for the preceding three years for taxpayers with an alternative simplified credit election. 3. It allows taxpayers to elect to use the alternative simplified credit method, which can be revoked but the taxpayer is then precluded from making the election for the next five tax years. These changes are effective for tax years beginning after December 31, 2020.