Bill > SF2970

This bill modifies the research credit under the Minnesota corporate and income franchise tax. It allows taxpayers to calculate their base amount using an alternative simplified method, which is 50% of the average qualified Minnesota research expenses for the three preceding taxable years. Taxpayers can make an election to use this alternative method, which is irrevocable for that taxable year. The bill also clarifies that qualified research expenses do not include those incurred for research conducted outside of Minnesota. These changes are effective for taxable years beginning after December 31, 2021.