Minnesota

The Minnesota R&D credit is generated from qualified research activities (QRAs) performed within the state. Qualifying activities are defined in Section 41 of the Internal Revenue Code as “a new or improved function, performance, or reliability or quality.”

Process improvement activities include:

  • Identifying uncertainty concerning the development or improvement of a business component;
  • Identifying one or more alternatives intended to eliminate that uncertainty; and
  • Identifying and conducting a process of evaluating the alternatives (e.g., through modeling, simulation, or a systematic trial-and-error methodology).

The R&D Tax Credit is a credit that is available across various industries, such as:

  • Agriculture
  • Automotive
  • Aviation
  • Biotechnology
  • Engineering
  • Farming
  • Food and Beverage
  • Logistics
  • Manufacturing
  • Oil and Gas
  • Software
  • Transportation


State Credit Name
: Credit for Increasing Research Activities

Expiration Date: Indefinite

Who Can Apply? Corporations and flow-through entities

Credit Carry Forward: Credit can be carried forward for 15 years.

About the Credit: The Minnesota state research credit adopts the federal definition of QRE’s. The credit is 10% of the QRE’s up to $2 million, and 2.5% for expenses above $2 million. QRE’s must have taken place in Minnesota. 

Notes: For partnerships and S-corporations, the credit was refundable from 2010 – 2012. C-Corporations can continue to carry forward credits acquired before 2010 and after 2012. For tax years after 2012, C-Corporations can apply the credit to any member of a corporation business that is included in the combined return.

Click here to find out if you qualify for the federal research credit.

Minnesota Research and Development Tax Credit – SwansonReed

 

Learn more information about the Minnesota R&D Tax credit and how it can benefit your business.

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Swanson Reed
14870 Granada Avenue
Suite #1024
Apple Valley, MN55124
P: (952) 236-4344
F: (512) 256-8157

 

Why Swanson Reed

We provide full, hands-on support from start to finish.

Are You Eligible?

Take our eligibility wizard to find out if you qualify for a tax credit.

Calculate Your Benefit

Use our quick calculator to determine your R&D tax credit benefit.

Know Your Deadline

Never miss a deadline again with our R&D Tax Credit filing deadline calculator.

For Accountants

Take advantage of our extensive database of videos, case law and recent news.

Industry Case Studies

Find out the qualifying R&D activities specific to your industry.

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