| |
Senate Counsel, Research
and Fiscal Analysis
|
|
Minnesota Senate Bldg.
|
|
95 University Avenue W. Suite 3300
|
|
St. Paul, MN 55155
|
|
(651) 296-4791
|
|
Alexis C. Stangl
|
|
Director
|
|
|
|
Senate
|
|
State of Minnesota
|
|
| |
|
| |
| |
| |
| |
|
S.F. No. 913 - Modification of base amount calculation for R&D credit (as proposed to be amended by the A-1 amendment)
|
| |
|
Author:
|
Senator Carla J. Nelson
|
| |
|
Prepared By:
|
Nora Pollock, Senate Counsel (651/297-8066)
|
| |
|
Date:
|
March 6, 2017
|
|
|
|
| |
|
Under current law, the R&D credit is calculated by taking a percentage of qualified research expenses in the taxable year over a base amount. The base amount is a percentage of qualified expenses in tax years 1984 to 1988, up to 16 percent. This bill authorizes taxpayers to elect an alternative simplified credit (ASC) calculation using the three previous years of qualified research expenses, effective beginning in tax year 2017.
|
Section
|
Provision
|
|
1
|
For taxpayers who elect the ASC method, authorizes a credit of six percent of qualified research expenses over the base amount.
|
|
2
|
Provides a new definition for the base amount for taxpayers making the ASC election: 50 percent of the average of qualified research expenses for the three previous taxable years prior to the year the credit is claimed.
|
|
3
|
Authorizes the ASC election. As proposed to be amended, the taxpayer may revoke the election at any time.
|
|
|
| |
|
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: 03/06/2017
|
| |
|
If you see any errors on this page, please e-mail us at
webmaster@senate.mn
|