MN SF793

Modifies the research credit definition under Minnesota Statutes section 290.068 to clarify that qualified research expenses and basic research payments are limited to activities conducted within Minnesota.

Adds contributions to Minnesota nonprofits that fund small, technologically innovative enterprises to the definition of qualified research expenses.

Creates an alternative simplified credit election allowing corporations, partnerships, and other taxpayers to calculate their base amount as 50 percent of average qualified Minnesota research expenses from the three preceding taxable years instead of using federal Internal Revenue Code section 41(c) calculations.

Permits taxpayers to make the alternative simplified credit election by the time of filing their tax return, including extensions, with the election being irrevocable for that taxable year.

Applies to taxable years beginning after December 31, 2022.