MN SF2489

Modifies Minnesota's research credit to be refundable for qualified research expenses incurred in taxable years beginning after December 31, 2013, allowing the commissioner to refund excess credit amounts that exceed tax liability.

Defines "liability for tax" as the sum of taxes imposed under section 290.06, subdivisions 1 and 2c, reduced by nonrefundable credits allowed under the chapter for all entities in a combined unitary business report.

Limits the research credit for taxable years beginning before January 1, 2010, and after December 31, 2012, and before January 1, 2014, to not exceed the liability for tax, with excess amounts carrying over to the next 15 succeeding taxable years.

Maintains that qualified research expenses include only those conducted within Minnesota, excluding expenses for research conducted outside the state as defined in Internal Revenue Code section 41.

Makes the refundable credit effective for taxable years beginning after December 31, 2013, with the subdivision 3 limitations effective for the same period.