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SF 38

as introduced - 89th Legislature (2015 - 2016) Posted on 01/08/2015 04:10pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; income and corporate franchise; requiring certification for
claiming the research credit; extending the credit to sole proprietors; amending
Minnesota Statutes 2014, section 290.068, subdivision 1, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 290.068, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

new text begin Subject to the requirements in subdivision 8, new text end a
corporation, deleted text begin partners in a partnership, or shareholders in a corporation treated as an "S"
corporation under section 290.9725 are
deleted text end new text begin individual, trust, or estate isnew text end allowed a credit
against the tax computed under this chapter for the taxable year equal to:

(a) ten 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, 2014.
new text end

Sec. 2.

Minnesota Statutes 2014, section 290.068, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Applications; certification. new text end

new text begin (a) A taxpayer claiming a credit under this
section must submit an application to the Department of Employment and Economic
Development for determination that the expenses for which the credit is claimed are
qualified research expenses. The application must be submitted by September 15 of
the calendar year following the end of the taxable year in which the qualified research
expenses were incurred. The application must be in a form and manner prescribed by
the commissioner of employment and economic development, in consultation with the
commissioner of revenue, and must contain information sufficient to verify that the
expenses for which the credit is claimed under this section are qualified research expenses.
new text end

new text begin (b) The commissioner of employment and economic development must notify the
taxpayer of the determination of the application under paragraph (a) no later than 90 days
after the application is received.
new text end

new text begin (c) Upon approving an application for credit under paragraph (a), the commissioner
of employment and economic development must issue a credit certificate to the taxpayer
that verifies eligibility for the credit and states the amount of credit and the taxable year to
which the credit applies. The commissioner of employment and economic development
must notify the commissioner of revenue of the issuance of the credit certificate, the
amount of the credit, and the taxable year to which the credit applies.
new text end

new text begin (d) The taxpayer claiming the credit under this section must file an amended return
for the taxable year to which the credit applies. The return must contain a copy of the
credit certificate issued under paragraph (c).
new text end

new text begin (e) A credit must not be issued under this section unless the commissioner of revenue
has received the certification required under paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2014.
new text end