1.1 	A bill for an act
1.2 	relating to taxation; income and corporate franchise; extending the research credit 
1.3 	to sole proprietors;amending Minnesota Statutes 2016, section 290.068, subdivision 
1.4 	1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 290.068, subdivision 1, is amended to read:
1.7 		Subdivision 1.Credit allowed. A corporation, partners in a partnership, or shareholders 
1.8 	in a corporation treated as an "S" corporation under section 290.9725 are individual, trust, 
1.9 	or estate is allowed a credit against the tax computed under this chapter for the taxable year 
1.10 	equal to:
1.11 	(a) ten percent of the first $2,000,000 of the excess (if any) of
1.12 	(1) the qualified research expenses for the taxable year, over
1.13 	(2) the base amount; and
1.14 	(b) 2.5 percent on all of such excess expenses over $2,000,000.

1.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
1.16 	31, 2016.