Minnesota tax credits and incentives
Review the program rules and claim timing below, then confirm the requirements with the administering agency.
This directory is not tax advice. Confirm eligibility, tax-year rules, deadlines and filing requirements with a tax professional.
Amounts are subject to the conditions in each listing. A source review does not mean applications are open or that a business qualifies.
1 program
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Minnesota credit for increasing research activities
Tax credit
Credit uses 10% on the first $2 million of qualifying research above the computed base and 4% beyond that. For 2026, 25% of eligible unused current-year credit can be refunded after the required election. [Minnesota Revenue research credit]
Check program requirements [Minnesota Revenue research credit]
Eligibility, claim steps and deadlines for Minnesota credit for increasing research activities
- Who qualifies
- Businesses conducting qualified research in Minnesota; only qualifying in-state expenses count, and Minnesota does not allow the federal alternative simplified method. [Minnesota Revenue research credit]
- What it’s worth
- Credit uses 10% on the first $2 million of qualifying research above the computed base and 4% beyond that. For 2026, 25% of eligible unused current-year credit can be refunded after the required election. [Minnesota Revenue research credit]
- How to claim
- Complete Minnesota Schedule RD. Pass-through owners make their own refundability election. [Minnesota Revenue research credit]
- Deadlines and application windows
- Elect the refundable portion on a timely filed return, including extensions; unused nonrefunded credits may carry forward up to 15 years. [Minnesota Revenue research credit]
Sources reviewed
Full details and sources for Minnesota credit for increasing research activities