SF 3155

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; allowing a special research and development credit;
amending Minnesota Statutes 2006, section 290.068, subdivision 2, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2006, section 290.068, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the
meanings given.

(a) "Qualified research expenses" means (i) qualified research expenses and basic
research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
it does not include expenses incurred for qualified research or basic research conducted
outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
to the provisions of chapter 317A for the purpose of promoting the establishment and
expansion of business in this state, provided the contributions are invested by the nonprofit
corporation for the purpose of providing funds for small, technologically innovative
enterprises in Minnesota during the early stages of their development.

(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.

(c) "Base amount" means base amount as defined in section 41(c) of the Internal
Revenue Code, except that the average annual gross receipts must be calculated using
Minnesota sales or receipts under section 290.191 and the definitions contained in clauses
(a) and (b) shall apply.

new text begin (d) For purposes of calculating the credit under subdivision 1, the terms "qualified
research expenses," "qualified research," and "base amount" exclude amounts used in
calculating the special credit under subdivision 7.
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, 2007.
new text end

Sec. 2.

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 Special credit; qualified businesses. new text end

new text begin (a) A corporation, individual,
or partnership is allowed a credit equal to ten percent of the environmental research
expenditures incurred for the taxable year, less the base amount of environmental research
expenses.
new text end

new text begin (b) For purposes of this subdivision, "environmental research expenditures" means
qualified research expenses, as defined in subdivision 2, if the research is done to develop
products, processes, methods, technologies, or services intended to do one or more of
the following:
new text end

new text begin (1) to increase the use of energy from renewable sources, as defined in section
216B.1691;
new text end

new text begin (2) to increase the energy efficiency of the electric utility infrastructure system or to
increase energy conservation related to electricity use, as provided in sections 216B.2401
and 216B.241;
new text end

new text begin (3) to reduce greenhouse gas emissions, as defined in section 216H.01, subdivision
2, or to mitigate greenhouse gas emissions through, but not limited to, carbon capture,
storage, or sequestration;
new text end

new text begin (4) to monitor, protect, restore, and preserve the quality of surface waters; and
new text end

new text begin (5) to expand use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can use
biofuels.
new text end

new text begin (c) For purposes of this section, "base amount of environmental expenses" means
the base amount, as defined in subdivision 2, of environmental research expenses as
defined in paragraph (b).
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, 2007.
new text end