Minnesota Legislature
HF 746
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:41am
Current Version - as introduced
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A bill for an act
relating to taxation; allowing the research credit against the individual income
tax; amending Minnesota Statutes 2008, section 290.068, subdivisions 1, 3, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 290.068, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
A deleted text begin corporation, other than a corporation treated as an
"S" corporation under section 290.9725,deleted text end new text begin taxpayernew text end is allowed a credit against deleted text begin the portion
ofdeleted text end the deleted text begin franchisedeleted text end tax computed under section 290.06, deleted text begin subdivision 1deleted text end deleted text begin ,deleted text end for the taxable year
equal to:
(a) 5 percent of the first $2,000,000 of the excess (if any) of
(1) the qualified research expenses for the taxable year, over
(2) the base amount; and
(b) 2.5 percent on all of such excess expenses over $2,000,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2008.
new text end
Sec. 2.
Minnesota Statutes 2008, section 290.068, subdivision 3, is amended to read:
Subd. 3.
Limitation; carryover.
(a)(1) The credit for the taxable year shall not
exceed the liability for tax. "Liability for tax" for purposes of this section means the tax
imposed under section 290.06, subdivision 1, for the taxable year reduced by the sum of
the nonrefundable credits allowed under this chapter.
(2) deleted text begin In the case of a corporation which isdeleted text end new text begin Fornew text end a partner in a partnershipnew text begin and for a
shareholder in an S corporationnew text end , the credit allowed for the taxable year shall not exceed
the lesser of the amount determined under clause (1) for the taxable year or an amount
(separately computed with respect to the deleted text begin corporation'sdeleted text end new text begin taxpayer'snew text end interest in the trade or
business or entity) equal to the amount of tax attributable to that portion of taxable income
which is allocable or apportionable to the deleted text begin corporation'sdeleted text end new text begin taxpayer'snew text end interest in the trade or
business or entity.
(b) If the amount of the credit determined under this section for any taxable year
exceeds the limitation under clause (a), the excess shall be a research credit carryover to
each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
the taxable year shall be carried first to the earliest of the taxable years to which the credit
may be carried and then to each successive year to which the credit may be carried. The
amount of the unused credit which may be added under this clause shall not exceed the
taxpayer's liability for tax less the research credit for the taxable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2008.
new text end
Sec. 3.
Minnesota Statutes 2008, section 290.068, subdivision 4, is amended to read:
Subd. 4.
Partnershipsnew text begin and S corporationsnew text end .
In the case of partnershipsnew text begin and S
corporationsnew text end the credit shall be allocated in the same manner provided by section 41(f)(2)
new text begin and 41(g) new text end of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2008.
new text end