MINNESOTA R&D TAX CREDIT SUMMARY
Minnesota State R&D Tax Credit
You can claim the R&D Tax Credit on your Minnesota Income Tax Return if:
- You are a partner in a partnership or shareholder in an S Corporation
- The partnership or business had qualifying R&D expenses in Minnesota that exceeded its “base amount” (as calculated for the federal R&D credit but based on Minnesota gross receipts).
The credit is equal to 10% of qualifying expenses up to $2 million, and 2.5 % of expenses above that level. Qualifying expenses include
- R&D expenses for the federal R&D credit and are for research done in Minnesota
- Contributions to qualified nonprofit organizations that make grants to small technologically innovative businesses in Minnesota during their early development years.
