Bill Text: MN HF1271 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Research and development base percentage clarified.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-23 - Introduction and first reading, referred to Taxes [HF1271 Detail]
Download: Minnesota-2011-HF1271-Introduced.html
1.2relating to taxation; clarifying research and development base percentage;
1.3amending Minnesota Statutes 2010, section 290.068, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 290.068, subdivision 2, is amended to read:
1.6 Subd. 2. Definitions. For purposes of this section, the following terms have the
1.7meanings given.
1.8 (a) "Qualified research expenses" means (i) qualified research expenses and basic
1.9research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
1.10it does not include expenses incurred for qualified research or basic research conducted
1.11outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
1.12Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
1.13to the provisions of chapter 317A for the purpose of promoting the establishment and
1.14expansion of business in this state, provided the contributions are invested by the nonprofit
1.15corporation for the purpose of providing funds for small, technologically innovative
1.16enterprises in Minnesota during the early stages of their development.
1.17 (b) "Qualified research" means qualified research as defined in section 41(d) of the
1.18Internal Revenue Code, except that the term does not include qualified research conducted
1.19outside the state of Minnesota.
1.20 (c) "Base amount" means base amount as defined in section 41(c) of the Internal
1.21Revenue Code, except that the average annual gross receipts must be calculated using
1.22Minnesota sales or receipts under section290.191 and the definitions contained in clauses
1.23(a) and (b) shall apply. For a case in which the taxpayer cannot document the amount
1.24of the taxpayer's fixed-base percentage under section 41(c)(3) of the Internal Revenue
2.1Code, the taxpayer may elect to calculate the base amount using a fixed-base percentage
2.2of 16 percent.
2.3EFFECTIVE DATE.This section is effective for taxable years beginning after
2.4December 31, 2010.
1.3amending Minnesota Statutes 2010, section 290.068, subdivision 2.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 290.068, subdivision 2, is amended to read:
1.6 Subd. 2. Definitions. For purposes of this section, the following terms have the
1.7meanings given.
1.8 (a) "Qualified research expenses" means (i) qualified research expenses and basic
1.9research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
1.10it does not include expenses incurred for qualified research or basic research conducted
1.11outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
1.12Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
1.13to the provisions of chapter 317A for the purpose of promoting the establishment and
1.14expansion of business in this state, provided the contributions are invested by the nonprofit
1.15corporation for the purpose of providing funds for small, technologically innovative
1.16enterprises in Minnesota during the early stages of their development.
1.17 (b) "Qualified research" means qualified research as defined in section 41(d) of the
1.18Internal Revenue Code, except that the term does not include qualified research conducted
1.19outside the state of Minnesota.
1.20 (c) "Base amount" means base amount as defined in section 41(c) of the Internal
1.21Revenue Code, except that the average annual gross receipts must be calculated using
1.22Minnesota sales or receipts under section
1.23(a) and (b) shall apply. For a case in which the taxpayer cannot document the amount
1.24of the taxpayer's fixed-base percentage under section 41(c)(3) of the Internal Revenue
2.1Code, the taxpayer may elect to calculate the base amount using a fixed-base percentage
2.2of 16 percent.
2.3EFFECTIVE DATE.This section is effective for taxable years beginning after
2.4December 31, 2010.
