- Credit for Increasing Research Activities – Tax incentive for businesses increasing R&D spending.
- Minnesota Statutes 290.068 – State law authorizing the R&D tax credit.
- Qualified Research Expenses – Costs eligible for the research credit calculation.
- Qualified Research – Research activities meeting specific legal criteria.
- Base Amount – Historical spending baseline for credit calculation.
- Minnesota Sales or Receipts – Revenue generated specifically within Minnesota.
- Unitary Business – Related entities filing a combined tax return.
- Combined Group – Affiliated companies treated as a single taxpayer.
- Earning Member – Group member that generated the tax credit.
- Liability for Tax – The total tax amount a taxpayer owes.
- Corporate Franchise Tax – Tax imposed on corporations doing business in Minnesota.
- Individual Income Taxes – Tax levied on the wages of individuals.
- Pass-Through Tax Entities – Businesses where income flows to owners’ returns.
- S Corporations – Corporations taxed as pass-through entities.
- Partnerships – Business structure with two or more owners.
- Allocating the Credit – Distributing credits among partners or shareholders.
- Credit Carryover – Unused credits saved for future tax years.
- Carry Forward – Applying unused credits to future tax liability.
- Carry Backwards – Applying unused credits to past tax years.
- Schedule M1C – Form for claiming nonrefundable individual credits.
- Schedule RD – Form for calculating the R&D tax credit.
- Schedule KPI – Partner’s share of income, credits, and modifications.
- Schedule KS – Shareholder’s share of income, credits, and modifications.
- Acquisitions and Dispositions – Buying or selling business assets affecting credits.
- Major Portion of a Trade or Business – Significant segment of a company’s operations.
- Major Portion of a Separate Unit – Distinct operational unit within a larger business.
- Incremental Credit – Credit based on increased R&D spending.
- Two-Tiered Rate Structure – Different credit rates for different spending levels.
- Refundability Rate – Percentage of credit available as a refund.
- Refundable Portion – Amount of credit paid out as cash.
- Tax Cuts and Jobs Act of 2017 (TCJA) – Major federal tax reform legislation.
- Internal Revenue Code Section 41 – Federal law defining R&D tax credit rules.
- Internal Revenue Code Section 174 – Federal law governing deduction of R&D expenses.
- Discover Technological Information – Research aim to exceed current technical knowledge.
- New or Improved Business Component – Product or process being created or enhanced.
- Four-Part Test – Criteria establishing eligibility for R&D credits.
- Elimination of Uncertainty Test – Research must resolve technical design questions.
- Process of Experimentation Test – Evaluation of alternatives to achieve a result.
- Permitted Purpose – Research must relate to function, performance, reliability.
- Qualified Research Organizations – Entities eligible to perform funded research.
- Basic Research Payments – Funds paid to organizations for scientific study.
- Salaries – Wages paid to employees conducting qualified research.
- Supplies – Tangible items used in the research process.
- Contractor Expenses – Costs for third-party research services.
- Use of Computers – Computer rental costs for research purposes.
- Development Contributions – Financial support for research development projects.
- Nonrefundable Credit – Credit limited to tax liability amount.
- Statute of Limitations – Time limit for assessing or collecting taxes.
- Timely Filed Return – Tax return submitted by the due date.
- Alternative Simplified Method – Optional calculation method for R&D credit.
