Minnesota Department of Revenue

Administers Minnesota tax filing systems and incentives processing as the state revenue authority.

Minnesota Department of Revenue is the state's tax authority, responsible for administering Minnesota taxes, refunds, declarations, and credits. It does not operate as a grantmaker; its role is to process statutory incentives that are claimed on tax returns. In this profile, the direct program is the Minnesota R&D Tax Credit, while other business incentives are certified by separate agencies and then claimed through DOR.

The R&D credit sits under Minn. Stat. 290.068 and uses the federal Sec. 41 qualified research definition with the four-part test. It equals 10% of qualified research expenses up to a $2 million base amount and 4% above that level, with work required to be incurred in Minnesota. For tax year 2025 and later, part of the credit is refundable, and the refundable share is scheduled to rise under the rules in the source page.

Claims are filed on Schedule RD with the corporation franchise return or the individual return, and the credit carries forward for 15 years with no carryback. The fit is therefore for companies already documenting research expenses and filing Minnesota returns, not for applicants seeking a discretionary award round. The department functions as an administrative gatekeeper for tax benefits, while the underlying certifications come from agencies such as MN DEED or other state bodies.