R&D Credit Allocation

The Minnesota Credit for Increasing Research Activities (R&D credit) should be allocated as follows:

Credit in Generation Year

The R&D credit must be applied as follows in the year the credit is generated:

1. The current year credit amount is used by the earning member up to the amount of their tax liability.
2. If any current year credit amount remains, the unused credit amount must be used by other members of the combined group up to the amount of their tax liabilities.
3. Any unused credit amount is carried over to subsequent tax years by the earning member for up to 15 years.

Credit Carryover in Subsequent Years

The R&D credit carryover amount must be applied as follows in subsequent years:

1. Credit carryover amounts must be used by the earning member to the amount of their tax liability.
2. If any credit carryover amount remains, the unused credit carryover amount must be used by other members of the combined group up to the amount of their tax liabilities.
3. Any unused and unexpired credit carryover amount is carried over to subsequent tax years by the earning member, up to 15 years from the year of generation until none remains.