1.1 	A bill for an act
1.2 	relating to taxation; income and franchise; extending the research credit to sole 
1.3 	proprietors; amending Minnesota Statutes 2012, section 290.068, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:
1.6 		Subdivision 1.Credit allowed. A corporation, ~~partners in a partnership, or~~ 
1.7 	~~shareholders in a corporation treated as an "S" corporation under section 290.9725 are~~
1.8 	 individual, trust, or estate is allowed a credit against the tax computed under this chapter 
1.9 	for the taxable year equal to:
1.10 	(a) ten percent of the first $2,000,000 of the excess (if any) of
1.11 	(1) the qualified research expenses for the taxable year, over
1.12 	(2) the base amount; and
1.13 	(b) 2.5 percent on all of such excess expenses over $2,000,000.

1.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.15 	December 31, 2013.