HF 1356

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; changing competition of the
research credit; amending Minnesota Statutes 2004,
section 290.068, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 290.068,
subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

A corporation, other than
a corporation treated as an "S" corporation under section
290.9725, is allowed a credit against the portion of the
franchise tax computed under section 290.06, subdivision 1, for
the taxable year equal to deleted text begin :
deleted text end

(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) deleted text begin 2.5 percent deleted text end new text begin the following percentage new text end on all of such
excess expenses over $2,000,000 deleted text begin . deleted text end new text begin :
new text end

new text begin (1) for taxable years beginning during calendar year 2006,
three percent;
new text end

new text begin (2) for taxable years beginning during calendar year 2007,
four percent; and
new text end

new text begin (3) for taxable years beginning during calendar year 2008,
and thereafter, five percent.
new text end