Income and corporate franchise tax; research credit modified.

HF 173 modifies Minnesota's research credit for income and corporate franchise tax by adding an "alternative simplified credit election." This allows eligible corporations, partnerships, or other taxpayers to calculate their base amount for the credit using 50% of their average qualified Minnesota research expenses from the prior three years, instead of the standard method based on federal definitions. The change applies to tax years beginning after December 31, 2024, and affects businesses conducting research within Minnesota that qualify for the credit. The bill does not alter the credit rate or expand eligibility, only offering an alternative calculation method for existing credit participants.