Minnesota has been a leader in R&D tax credits, being the first to employ a state level credit (in 1981) to support home-grown research, development and innovation.  In April 201o, the state signed into law an improved version that ups the credit on the first $2 million of R&D expenses (over base) from 5% to 10%, with amounts over $2M credited at 2.5%.  The R&D tax credit can be used by businesses of all sizes, whether large enterprise or startup.  And, in another improvement, can be used by S corporations and partnerships, as well as C corporations.  Moreover, it’s a refundable credit, regardless of tax liability.  Sweet!

Have you used it?  Do you know how to use it?  If you’re a Minnesota company driving innovation, you better learn.  Start with the MOJO Guide to the MN R&D Tax Credit – then talk to your accountant.  Don’t leave money on the table while you’re growing your tech business.

If you have used the credit, share some experiences/comments here.  We want to know!

Ernest Grumbles, Brad Lehrman, Steele Lorenz