Purpose of the Bill

This bill aims to provide financial incentives to certain higher education institutions in Minnesota by introducing a refundable tax credit. This credit is specifically for institutions that receive funding from the National Institutes of Health (NIH).

Main Provisions

• Tax Credit for NIH Funding: Eligible public postsecondary educational institutions can receive a tax credit worth 25% of the NIH grants they receive during a taxable year.

• Refundable Credit: If the credit amount surpasses the institution's tax liability, the excess amount will be refunded to the institution. This ensures that institutions benefit from the full credit, even if their tax liability is less than the credit received.

• Appropriation for Refunds: The bill includes a provision where funds will be appropriated from the general fund to cover the refunds. This guarantees that institutions receive their due financial benefits.

• Claiming the Credit: The Minnesota tax commissioner will define the process for how institutions can claim this credit. This might involve a separate process for submitting refund claims.

Significant Changes to Existing Law

The bill introduces new tax credit provisions in chapter 290 of the Minnesota Statutes. This is a new initiative specifically targeting institutions receiving NIH funding and was not previously outlined in Minnesota tax law.

Relevant Terms

tax credit, National Institutes of Health (NIH), public postsecondary educational institution, refundable credit, tax liability, general fund, Minnesota Statutes chapter 290