“Providing the financial resources needed to create and maintain highly-valued infrastructure, services and amenities”

Taxes

Businesses receive good value for their taxes by having access to solid public infrastructure, quality education, and second-to-none recreational amenities. As a result, employers are able to access, attract, and retain the most precious asset of all…people!

Minnesota’s corporate tax rate of 9.8% is applicable to the taxable portion of corporate income. In 2014, Minnesota adopted the single sales apportionment, making Minnesota a competitive location for headquarters and businesses that routinely make capital investments. Business taxes can be reduced by tax credits such as:

  • Credit for Increasing Research Activities (R&D credit). The tax credit for R&D expenditures is 10%, up to the first $2 million in eligible expenses. The credit is 2.5% for eligible expenses above $2 million. Individuals involved in partnerships, S-corporations and limited liability companies are allowed to claim the credit against their individual income taxes.
  • Small Business Investment Credit (“Angel Investment Credit”).  This credit provides qualified investors in certified small businesses with a refundable income tax credit equal to 25 percent of their investments up to a maximum of $125,000 ($250,000 for married joint filers). The credit was enacted to encourage investment in emerging small businesses.
  • Historic Structure Rehabilitation Credit for improvement of historic structures.

To learn more about Minnesota state taxes, for business and individuals visit the Minnesota Department of Revenue.

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