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.
Research Tax Credit
Important Links and Forms

MN R&D Credit Info
Schedule RD

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