1.2relating to taxation; income and franchise; extending the research credit to sole
1.3proprietors; amending Minnesota Statutes 2012, section 290.068, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:
1.6    Subdivision 1. Credit allowed. A corporation, partners in a partnership, or
1.7shareholders in a corporation treated as an "S" corporation under section 290.9725 are
1.8 individual, trust, or estate is allowed a credit against the tax computed under this chapter
1.9for the taxable year equal to:
1.10    (a) ten percent of the first $2,000,000 of the excess (if any) of
1.11    (1) the qualified research expenses for the taxable year, over
1.12    (2) the base amount; and
1.13    (b) 2.5 percent on all of such excess expenses over $2,000,000.
1.14EFFECTIVE DATE.This section is effective for taxable years beginning after
1.15December 31, 2013.