Minnesota R&D Tax Credit Summary

R&D Tax Credit Available:

Yes

Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

Deadline for Tax Filing:

Due with Minnesota Tax Return

Data Required to Compute Credit:

• Claim Period Federal Qualified R&D Expenses (QREs)
• Gross Receipts for Prior 4 Years

Credit Carryforward:

15 Years

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.