NOTE: users of the federal credit should be aware that it is different from the research expenditure deduction that was available under Section 174 of the Internal Revenue Code and which allowed deduction of those expenses in the year they were sustained. For tax years beginning in 2022 those costs must be amortized over a five year period. Users should also note that the expenditures qualifying under Section 41 and 174 are not exactly the same. • Alternative Minimum Tax Carryover Credit : Provides a credit for prior year alternative minimum tax liability caused by timing items. The credit cannot be claimed in a year for which the taxpayer was subject to alternative minimum tax. For C corporations This allows a credit against corporate income tax for qualified alternative minimum tax previously paid. The entire amount of the credit must be carried into the earliest taxable year into which the credit may be carried, and any unused portion of the credit must be carried into the following taxable year. The credit may not be claimed in the same year the C corporation is paying Alternative Minimum Tax. (Minn. Stat. § 290.0921, subd. 8). For Individuals, Estates and Trusts This allows a credit against income tax equal to the adjusted net minimum tax reduced by the minimum tax credits allowable in a prior tax year. Special definitions apply to computation of tax involving part-time Minnesota residents, income from private activity bond revenue, and income from depletion. (Minn. Stat. § 290.091, subd. 6) • Greater Minnesota Job Expansion Program : Provides tax benefits to businesses located in Greater Minnesota that increase employment. Qualifying businesses that meet job-growth goals may receive sales tax refunds for purchases made during a seven-year period. Purchases and use of tangible personal property and taxable services made by a qualified business are eligible for a sales tax refund. The purchase must be made, and the property or service must be delivered, during the business' certification period. The purchase and use of construction materials and supplies for property improvements by a qualified business in Greater Minnesota are also eligible for a sales tax refund. This refund applies whether the purchases are made directly by the business or by a contractor. The maximum sales tax refund amount for each qualifying business is based on the application material submitted to DEED, subject to a maximum of $2 million annually and $10 million over the seven-year certification period. Eligibility To become certified to participate in the Greater Minnesota Job Expansion Program, a business must meet the following qualifications: • Increase employment at the business's facility by a minimum of two full time equivalent (FTE) employees or 10 percent of the current number of employees, whichever is greater, within three years. • Pay compensation, which includes wages and benefits not mandated by law, which on an annualized basis equals at least 120 percent of the federal poverty level for a family of four, to all employees at the business' facility. For 2024, these amounts are $37,440 per year or $18.00 per hour.
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