Research income and corporate franchise tax credit modification

This bill (SF 1237) modifies Minnesota’s research tax credit by adding an "alternative simplified credit election" for qualifying businesses. It allows corporations, partnerships, or other taxpayers to calculate their credit base using 50% of their average qualified Minnesota research expenses from the prior three years, instead of the standard method. This change directly affects businesses conducting qualified research within Minnesota that claim the state’s research tax credit. The provision becomes effective for taxable years beginning after December 31, 2024.