R&D Tax Credit Available:
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
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".
- 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.