Minnesota R&D Tax Credit Summary
MN R&D Tax Credit Available

Yes


Eligible Entities

C-Corporation, S-Corporations, LLCs, Partnerships


Deadline for Tax Filing

Due with Minnesota Tax Return


Data Required to Compute Credit
  • Claim Period Qualified R&D Expenses (QREs)
  • Gross Receipts for Prior 4 Years

Credit Carryforward

15 Years


MN R&D Credit Summary

The R&D tax credit equals:

  • 10% of the first $2 million of qualifying expenses over the base amount, and 2.5% of expenses over $2 million
  • Minnesota does not conform to the federal “Alternative Simplified Method.

Special Notes
  • The credit is not refundable; it cannot exceed the tax liability
  • QREs can include contributions to qualified nonprofit organizations that make grants to small, technologically innovative businesses in Minnesota during their early development stages.

MN Research Tax Credit

Important Links and Forms:

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