Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
State of Minnesota
S.F. No. 305 - Increasing second-tier rate of R & D credit and providing for limited refundability
Author: Senator Ann H. Rest
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: February 3, 2015


This bill increases the credit amount on second tier of the research and development (R & D) credit, effective beginning in tax year 2016.  The bill also allows up to $200,000 of the first tier (the maximum amount allowed in the first tier of the credit) to be refundable, effective beginning in tax year 2015. 




Increases the second tier credit amount from 2.5 percent to four percent.  The second tier credit amount is based on the amount of excess qualifying expenses over $2 million.


Modifies the credit to make the first $200,000 refundable.  The credit was made refundable in 2010.  Changes in 2013 made the credit nonrefundable and required a unitary business to allocate the credit among members of the unitary group in order to fully use the credit, and allowed the credit to be carried forward for up to 15 years. 


Check on the status of this bill
Back to Senate Counsel and Research Bill Summaries page

This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
Last review or update: 02/03/2015
If you see any errors on this page, please e-mail us at