Bill > HF3316

This bill modifies the research credit in Minnesota's income and corporate franchise tax. It amends the definition of "base amount" for calculating the research credit, providing an alternative simplified credit calculation option for taxpayers. Specifically, the bill allows taxpayers to use 50% of their average qualified Minnesota research expenses from the previous three tax years as the base amount, instead of the standard formula. This new alternative simplified credit election must be made at the time of filing the tax return. The changes are effective for tax years beginning after December 31, 2021.