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Last Updated: 12/14/2017

Credit for Increasing Research Activities ("R&D credit")

If your business paid certain research and development (R&D) expenses in Minnesota you may qualify for the Credit for Increasing Research Activities, or “R&D credit.”

The R&D Credit is available to businesses, partnerships, and S corporations with qualifying research activities in Minnesota.

The Minnesota R&D credit is based on the federal R&D credit, however there are some significant requirement differences. Be familiar with the Minnesota provisions for the year you are claiming the research credit.

To claim the R&D credit, complete Schedule RD, Credit for Increasing Research Activities.
 

R&D Credit Overview

  • Background on the credit
  • Qualified Research Activities Examples
  • Qualified Research Expenses Examples

R&D Credit Four-Part Test  

  • Elimination of Uncertainty
  • Discovering Technological Information
  • Permitted Purpose
  • Process of Experimentation

Minnesota R&D Credit Differences to Federal Credit  

  • Conducted in Minnesota
  • No “Alternative Simplified Method”
  • No Carryback
  • Definition of “Gross Receipts”
  • Zero Minnesota Gross Receipts
  • Refundable in Minnesota for tax years 2010 – 2012

R&D Credit Documentation  

  • Description of Research Activities
  • Wages
  • Supplies
  • Contracted Research

 

Helpful Resources