1.1 	A bill for an act
1.2 	relating to taxation; increasing the research credit; amending Minnesota Statutes 
1.3 	2010, section 290.068, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:
1.6 		Subdivision 1.Credit allowed. A corporation, partners in a partnership, or 
1.7 	shareholders in a corporation treated as an "S" corporation under section 290.9725 are 
1.8 	allowed a credit against the tax computed under this chapter for the taxable year equal to:
1.9 	(a) ten 12.5 percent of the first $2,000,000 of the excess (if any) of
1.10 	(1) the qualified research expenses for the taxable year, over
1.11 	(2) the base amount; and
1.12 	(b) 2.5 five percent on all of such excess expenses over $2,000,000.

1.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.14 	December 31, 2010.