Minnesota Legislature
SF 2831
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to taxation; franchise; modifying the credit for increasing research
activities; appropriating money; amending Minnesota Statutes 2006, section
290.068, subdivisions 1, 3, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, 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:
(a) deleted text begin 5deleted text end new text begin tennew text end percent of the first deleted text begin $2,000,000deleted text end new text begin $250,000new text end 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 2.5deleted text end new text begin fivenew text end percent on all of such excess expenses over deleted text begin $2,000,000deleted text end new text begin $250,000new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2007.
new text end
Sec. 2.
Minnesota Statutes 2006, section 290.068, subdivision 3, is amended to read:
Subd. 3.
new text begin Credit refundable;new text end limitation; carryover.
(a)(1) deleted text begin The credit for the
taxable year shall not exceed the liability for taxdeleted text end new text begin If the amount of the credit which the
taxpayer is eligible to receive under this section exceeds the taxpayer's liability for tax
under this chapter, the commissioner must allow an amount, not to exceed $25,000, as
a credit against any liability for tax under section 290.0921, and refund any remaining
amount to the taxpayernew text end . "Liability for tax" for purposes of this section means the tax
imposed under this chapter for the taxable year reduced by the sum of the nonrefundable
credits allowed under this chapter.
(2) In the case of a corporation which is a partner in a partnership, 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 corporation's
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 corporation's interest
in the trade or business or entity.
new text begin
(3) If a taxpayer entitled to the credit provided by this section is a member of
a unitary business which is required to file a combined report under section 290.17,
subdivision 4, paragraph (j), the credit may be claimed in all or in part by any corporation
included in the combined report.
new text end
(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, 2007, and this section applies to credit amounts carried over from prior
taxable years.
new text end
Sec. 3.
Minnesota Statutes 2006, section 290.068, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay the refunds required by this
section is annually appropriated to the commissioner from the general fund.
new text end