State program
Minnesota Credit for Increasing Research Activities
A two-tier credit that is partially refundable for pass-through owners.
Program Overview
Minnesota provides a credit on the increase in qualified research expenses for research conducted in Minnesota, with a higher rate applied to the first tranche of qualifying spending. The credit is non-refundable for C corporations but a portion is refundable for individual partners and shareholders of pass-through entities, an unusual structure that benefits closely held engineering and manufacturing firms. Minnesota follows federal Section 41 definitions.
Eligibility
Corporations, partnerships and S corporations with qualified research expenses for research conducted in Minnesota.
Benefits
Non-refundable for corporations; partially refundable for individual owners of pass-through entities.
Schedule a Teleconference
A scoping conversation clarifies exposure, open IDRs, and whether readiness or active defense is the priority.