HF 206

as introduced - 88th Legislature (2013 - 2014) Posted on 01/28/2013 01:45pm

A bill for an act
relating to taxation; income and corporate franchise; modifying the computation
of the research credit; amending Minnesota Statutes 2012, section 290.068,
subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

new text begin (a) new text end A corporation, partners in a partnership, or
shareholders in a corporation treated as an "S" corporation under section 290.9725 are
allowed a credit against the tax computed under this chapter for the taxable year equal to
new text begin the sum of the amount of new text end :

new text begin (1) the tier one credit under paragraph (b); and
new text end

new text begin (2) the tier two credit under paragraph (c).
new text end

new text begin (b) The tier one credit equals ten percent of the first $2,000,000 of qualified research
expenses for the taxable year.
new text end

deleted text begin (a) ten deleted text end new text begin (c) The tier two credit equals 2.5 new text end percent deleted text begin of the first $2,000,000 deleted text end of the excess
(if any) new text begin for the taxable year new text end of new text begin qualified research expenses over the greater of:
new text end

(1) the qualified research expenses deleted text begin for the taxable year, over deleted text end new text begin used to calculate the
tier one credit; or
new text end

(2) the base amount deleted text begin ; and
deleted text end

deleted text begin (b) 2.5 percent on all of such excess expenses over $2,000,000 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2012.
new text end