Bill Text: MN HF206 | 2013-2014 | 88th Legislature | Introduced

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Bill Title: Research tax credit computation modified.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2013-01-28 - Introduction and first reading, referred to Taxes [HF206 Detail]

Download: Minnesota-2013-HF206-Introduced.html

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A bill for an act

relating to taxation; income and corporate franchise; modifying the computation
of the research credit; amending Minnesota Statutes 2012, section 290.068,
subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:
    Subdivision 1. Credit allowed. (a) A corporation, partners in a partnership, or
shareholders in a corporation treated as an "S" corporation under section 290.9725 are
allowed a credit against the tax computed under this chapter for the taxable year equal to
the sum of the amount of:
(1) the tier one credit under paragraph (b); and
(2) the tier two credit under paragraph (c).
(b) The tier one credit equals ten percent of the first $2,000,000 of qualified research
expenses for the taxable year.
    (a) ten (c) The tier two credit equals 2.5 percent of the first $2,000,000 of the excess
(if any) for the taxable year of qualified research expenses over the greater of:
    (1) the qualified research expenses for the taxable year, over used to calculate the
tier one credit; or
    (2) the base amount; and
    (b) 2.5 percent on all of such excess expenses over $2,000,000.
EFFECTIVE DATE.This section is effective for taxable years beginning after
December 31, 2012.