*237011* 
2023 RD, Credit for Increasing Research Activities 

Unitary businesses:Complete       a separate Schedule                     RD     for  each  corporation that is               claiming        the   credit.     

Name of Corporation                                                                                                                    FEIN                                                                                                                                                                                         Minnesota Tax ID 
                                                                                                                                                                         Round amounts to nearest whole dollar. 
 1  Wages for    qualified  services  (do not include wages used in 
    figuring  the work    opportunity             credit)    ... ...... ..... ....... ..... ...... ..... ...... ..... ...... ...... .                                                                                                                                                                                            1 

 2  Cost of supplies  .....   ...... ...... ..... ...... ..... ...... ...... ..... ...... ...... ...... ..... .....                                                                                                                                                                                                              2 

 3  Amounts paid or     incurred            for the    right to    use     computers to   conduct                 research       ... ...... ..... ....... ..... .                                                                                                                                                                3 

 4  Applicable  percentage of   contract               expenses          ... ...... ..... ....... ..... ...... ..... ..... ...... ...... .                                                                                                                                                                                       4 

 5  Amount paid to      qualified      research         organizations            for basic     research  ... ...... ..... ....... ..... ...... ....                                                                                                                                                                              5 

 6  Development contributions to a               nonprofit           organization   .... ...... ..... ...... ...... ..... ...... ...... .                                                                                                                                                                                        6 

 7  Total  qualified research          expenses in          Minnesota for          the    tax    year  (add  lines 1      through    6)  . ...... ...... ......                                                                                                                                                                  7 

                                                                             A- Minnesota Sales                            B- Minnesota Qualified  
                                                                                   and Receipts                                Research Expenses 

 8  Tax  year 1988   ... ...... ..... ...... .                       8 

 9  Tax  year 1987   ... ...... ..... ...... .                       9 

 10  Tax  year 1986     ... ....... ..... .....                    10 

 11  Tax  year 1985     ... ....... ..... .....                    11 

 12  Tax  year 1984     ... ....... ..... .....                    12 

 13  Add  lines 8      through    12  ... ...... ....              13 

 14  Fixed  base percentage            (divide  line 13B by     line       13A;     do  not fill in      more      than     16%      [.16]).  
    Start-up companies,         see  instructions   .... ..... ..... ...... ..... ...... ...... ...... ..... ...... ..... .. .                                                                                                                                                                                                   14 

 15 Tax  year 2022   ... ...... ..... ...... ...                   15 

 16 Tax  year 2021   ... ...... ..... ...... .                     16 

 17  Tax  year 2020  ... ...... ..... ...... .                     17 

 18  Tax  year 2019  ... ...... ..... ...... .                     18 

 19  Add  lines    15 through    18   ... ...... ..... ...... ...... ..... ...... ..... ...... ...... ..... ...... ...... ..                                                                                                                                                                                                     19 

 20  Average  annual gross        receipts  (multiply line              19 by        25% [.25])      .... ..... ....... ..... ...... ..... ...... ....                                                                                                                                                                           20 

 21  Multiply  line      20 by   the percentage         on    line     14 .. ..... ...... ..... ....... .... ...... ...... ...... ..... ...                                                                                                                                                                                      21 

 22  Multiply  line 7 by          50%  (.50)                                                                                                                                             . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... .22 
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                                                                                                          9995 

2023 Schedule RD, page 2 
                                                                                                                                                                                                                                                                                                                                *237021* 

Name of Corporation                                                                                                                  FEIN                                                                                                                                                                                          Minnesota Tax ID 
                                                                                                                                                                         Round amounts to nearest whole dollar. 

 23  Base  amount  (enter  amount from                 line 21        or line 22,     whichever           is greater)  ... ...... ...... ...... ..... ......                                                                                                                                                                    23  

 24  Subtract  line 23    from line 7          (if result is   zero or         less,  leave  blank) ... ...... ..... ....... ..... ...... ..... ...                                                                                                                                                                             24  

 25  Enter  the amount       from     line 24 or        $2,000,000, whichever is                 less ... ...... ..... ....... ..... ...... ..... ...                                                                                                                                                                           25  

 26  Subtract  line    25 from line     24    .... ..... ...... ...... ...... ..... ...... ..... ...... ...... ...... ..... ...                                                                                                                                                                                                 26  

 27  Multiply  line      25 by   10%  (.10) ... ...... ..... ....... ..... ...... ..... ...... ..... ...... ...... ...... ...                                                                                                                                                                                                   27  

 28  Multiply  line      26 by   4% (.04)                                                                                                                                               . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... .28  

 29  Current credit     (add  lines    27 and  28) ... ...... ..... ....... ..... ..... ...... ..... ...... ...... ...... .                                                                                                                                                                                                    29                          

 30  Your  share of   any    credit  from a      partnership           (see instructions)         ... ...... ..... ....... ..... ...... ..... ...                                                                                                                                                                              30  

 31  Tentative  credit  (add  lines 29    and 30;          see    instructions)        ... ...... ...... ...... ..... ...... ..... ...... ...                                                                                                                                                                                  31  

 32  Limitation  (see  instructions)       ... ...... ..... ....... ..... ..... ...... ..... ...... ...... ...... ..... ...                                                                                                                                                                                                    32  

 33  Credit for  increasing      research  activities  (enter  line          31 or line  32,  whichever      is less)  . ...... ...... ..... ......                                                                                                                                                                            33  

 34  Total  credit allocated           to other  members   of the            combined        return     (see    instructions)           .. ..... ..... ...... ....                                                                                                                                                             34  

 35  Add  lines    33 and    34  .. ...... ...... ..... ...... ..... ...... ..... ....... ..... ...... ..... ...... ....                                                                                                                                                                                                       35  

 36  Subtract  line    35 from line     31    .... ..... ...... ...... ...... ..... ...... ..... ...... ...... ...... ..... .                                                                                                                                                                                                  36  

 37  Current year       credit  from other         members of         the combined            return     (see  instructions) ... ...... ..... ....... .                                                                                                                                                                        37  

 38  Add  lines    33 and 37     .. ...... ...... ..... ...... ..... ...... ..... ....... ..... ...... ..... ...... ....                                                                                                                                                                                                       38  

 39  Your  credit carryover       from    2022  (see instructions)               .... ..... ...... ..... ...... ...... ..... ...... ......                                                                                                                                                                                     39  

 40  Add  lines    38 and    39  .. ...... ...... ..... ...... ..... ...... ..... ....... ..... ...... ..... ...... ....                                                                                                                                                                                                       40  

 41  Total  carryover credit      received       from      other members of                the combined         return       (see instructions)            ...... ......                                                                                                                                                       41  

 42  Total  carryover credit      allocated to       other      members of        the       combined        return       (see  instructions) ... ...... .... .                                                                                                                                                                 42  

 43  This  line intentionally      left  blank    ... ...... ..... ....... ..... ...... ..... ...... ..... ...... ...... .... .                                                                                                                                                                                                43  

 44  This  line intentionally      left  blank    ... ...... ..... ....... ..... ...... ..... ...... ..... ...... ...... .... .                                                                                                                                                                                                44  

 45  2023 Credit      (enter line        32 or   the  sum of      lines    40 and  41,  whichever is      less) Enter on Form M4T line 18... ...                                                                                                                                                                               45  

 46   Credit carryover to 2024 (see instructions)                     .... ..... ...... ..... ..... ...... ...... ...... ..... ...... .                                                                                                                                                                                        46  

Attach this schedule and a copy of federal Form 6765 to your Minnesota return. 

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                                                                                                       9995 

2023 Schedule RD, page 3 
                                                                                                                                                                                                         *237051* 

Name of Corporation                                                                                                                               FEIN                                                                    Minnesota Tax ID 

Additional Information. Please check the appropriate box. 
1.   Did a CPA, attorney, consultant or other:                                                                                                                                                                                             Yes          No 
   a.  Assist   in the            calculation      or preparation      of the  tax credit?                 ... ...... ..... ...... ...... ..... ...... ..... ...... ..                                                     1a                              

   b.  Conduct R&D      a              tax  credit study?             ...... ...... ..... ...... ..... ...... ...... ..... ...... ..... ...... ...... ..                                                                   1b                   
       If “Yes”   is checked     on  lines      1a   or 1b,  provide  the following            information  for   each individual       who  assisted       in the    calculation      or preparation       
   of the  tax         credit   or conducted tax      a      credit study.        (If more    than  one   individual, attach schedule       a    for  each with        the  following  information): 
   Individual’s Name                                                                                                                    Individual’s Title    

   Individual’s Company                                                                                                                 Individual’s Phone        Number 

   c.  If “Yes”          is checked    on     lines             1a or 1b,      may  the  Minnesota        Department              of Revenue       discuss     the      tax   credit  with   the       
       individual(s) who               assisted         in the      calculation         or preparation           of the    tax  credit     or conducted tax        a       credit    study?         .... ..                  1c                            
                                                                                                                                Review of                                    Combination of review of  
                                                                                                                           contemporaneous               Estimation                 contemporaneous  
                                                                                                                                  records                                    records and estimation 
2.   How were the following calculated: check appropriate box. 
   a.   Wages... ...... ..... ....... ..... ...... ..... ....      2a                                                              

   b.  Supplies  ..          ...... ...... ..... ...... ..... ...... ...                                      2b                                                                            

   c.  Contracted Research                  ... ...... ..... ...... ...... ...                                2c                                              
3.  Were the           following      performed/conducted within                       the  state   of Minnesota:            
   a.   Wages... ...... ..... ....... ..... ...... ..... ...... ..... ...... ...... ...... ..... ...... ..... ....... ...     3a                                                                                                                

   b.   Contracted  Research ... ...... ..... ...... ...... ..... ...... ..... ...... ...... ..... ...... ...... ..... ....     3b                                                                                                               
   If “No” is checked on lines 3a or 3b, the taxpayer cannot claim those expenses in calculating the tax credit. 
4.  Was the            claimed research        performed   at the                 request   of another         individual         or entity?      ...... ...... ..... ...... ...... ..                                        4                 

5.  Was the            claimed research        performed   as part                    of a joint      venture  with    another  individual   or entity?                   .. ...... ...... ..... .                            5                 
6. Did  you receive              an Innovation Grant           from              the  Minnesota Department                   of Employment  
   and  Economic  Development (DEED)?                                                                                                                                                                                 . . . . .6. . .  . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
   If “Yes” is checked, see instructions for lines 1-6 Qualified Expenses. 

                                                                                                                 9995 

 2023 Schedule RD Instructions 

    If your business     paid  qualified  research  and  development  expenses      in Minnesota,  and  those  expenses  exceed base      a   
 amount,  you  may    be entitled      to this  credit. 
 The credit equals 10 percent of the first $2,000,000 of qualifying expenses over the base amount, and 4 percent of expenses over $2,000,000. 
 Partnerships and S corporations are allowed to pass the credit through to their partners and shareholders. 

 Qualified Expenses
 Round amounts to the nearest whole dollar. 
 Lines 1–6 
 Qualified research expenses are the same kinds of expenses and payments that qualify for the federal credit for increasing research activities 
 except that they must be for research done in Minnesota. Include your qualified Minnesota research expenses paid or incurred in the taxable 
 year on lines       1 through 5. 
 Qualified research expenses also include contributions to qualified nonprofit organizations that are operated to make grants to small, techno-
 logically innovative enterprises in Minnesota during their early development stages. Include these contributions on line 6.   
 If you received an Innovation Grant from the Minnesota Department of Employment and Economic Development (DEED), then any expendi-
 tures funded by the Innovation Grant are not eligible qualified expenses. Do not include these funded expenditures on lines 1 through 6. 

 Base Amount 
 Lines 8–12 and 15–18 
 The base amount is calculated in the same way as it is under federal law, except that expenses must be for research done in Minnesota. Also, 
 your Minnesota sales or receipts that you used to apportion income are used instead of your gross receipts to calculate the base amount. 
 Enter your Minnesota sales and receipts and qualified research expenses for the indicated tax years in the appropriate columns. 
 Lines 13 and 14 
 Fixed-Base Percentage 
 Follow the instructions on lines 13 and 14 to determine the amount of your fixed-base percentage. (Note: Only tax years beginning in 1984 
 through 1988 are used to calculate the percentage.) 
 Start-up companies. If you had Minnesota sales or receipts and Minnesota qualified research expenses in fewer than three tax years begin-
 ning after Dec. 31,     1983, and before Jan. 1, 1989, or if the first taxable year you had both gross receipts and qualified research expenses began 
 after Dec. 31, 1983, your fixed-base percentage for the first five tax years beginning after 1993 is 3 percent (line 14). 
 See IRC section 41(c)(3)(B)(ii) to figure the fixed-base percentage for any tax year after the fifth tax year beginning after 1993 for which you 
 have qualified research expenses. Use Minnesota qualified research expenses and sales or receipts in applying the provisions of IRC section 
 41(c)(3)(B)(ii). 
 Line 30 
 Any Credit from a Partnership  
 Include any credit amounts you received as a partner of a partnership (from line 27 of Schedule KPC). Credits from a partnership are limited 
 to the amount of tax attributable to your share of the partnership’s taxable income. 
 Attach a statement explaining amounts included on line 30. 
 Line 31 
 Tentative Credit 
 C corporations: Complete lines 31 through 44. 
 Partnerships: For your individual, estate and trust partners, pass the amount, pro rata, on Schedule KPI, line 24. For your partnership and 
 corporate partners, pass the amount, pro rata, on Schedule KPC, line 27. However, partners electing to file composite returns are not entitled 
 to this credit. 
 Attach Schedule RD when you file your Form M3. 
 S corporations: Pass the amount through, pro rata, to shareholders on Schedule KS, line 24. However, shareholders electing to file composite 
 returns are not entitled to this credit. 
 Attach Schedule RD when you file your Form M8. 
 Line 32 
 Limitation 
 Your credit is limited to the regular franchise tax or the liability for tax, whichever is less. Enter the lesser of Form M4T, line 10, or the differ-
 ence of Form M4T, line 17 minus the sum of lines 22 through 25. If the result is zero or less, leave blank. 
                                                                                                                               Continued              1 

2023 Schedule RD Instructions (Continued) 

Line 34 
Unitary Businesses 
If the 2023 credit on line 31 exceeds the limitation on line 32, the excess must be entered on Form M4T line 15 in the columns of other mem-
bers of the unitary business that didn’t generate the credit. Credits claimed by other members are limited to the regular franchise tax or the 
liability for tax, whichever is less, as described in the instruction for line 32 above. Enter the total amount of credit claimed by other members 
of the unitary group on line 34. The amount on line 34 may not exceed the difference of line 31 minus line 32. Attach a schedule showing the 
calculation of current year credits claimed by other members. 
Line 37 
If a member of your unitary group that is included on the combined return has a credit in excess of its limitation, that excess must be utilized 
by other members if possible. Enter any amount received from another member or members on line 37. Provide a schedule identifying the 
name and Minnesota identification number of the member(s) which generated the credit. The amount on line 37 may not exceed the differ-
ence of line 32 minus line 33. 
Line 39 
Credits from prior years included on this line may only be from the corporation completing this schedule. You may not include credits earned 
by other members of the unitary group on line 39. 
Line 41 
Carryover Credit Received from Other Members 
If a member of the unitary group has a carryover credit in excess of its limitation, that excess must be utilized by other members if possible. 
Enter the amount of carryover credit received from another member or members on line 41. The amount on line 41 may not exceed the dif-
ference of line 32 minus line 40 (if zero or less, enter 0). Attach a schedule identifying the name and Minnesota identification number of the 
member(s) which generated the credit. 
Line 42 
Carryover Credit Allocated to Other Members 
If line 40 exceeds line 32, the excess must be utilized by other members if possible. Enter the excess on Form M4T line 15 in the columns of 
other members of the unitary group that did not generate the credit. Credits allocated to other members are limited to the regular franchise tax 
or the liability for tax for each member, whichever is less, as described in the instruction for line 32 above. Enter the total amount of carry-
over credit allocated to other members of the unitary group on line 42. The amount on line 42 may not exceed the difference of line 40 minus 
line 32 (if zero or less, enter 0). Attach a schedule showing the calculation of carryover credits allocated to other members. 
Line 46 
Any credit remaining after being applied to other members must be carried forward by the earning member that generated the credit. The 
credit can be carried forward by that member for 15 years. 
If line 31 is more than line 32, subtract line 42 from the sum of lines 36 and 39, and enter the result on line 46 (if zero or less, enter 0). If line 
31 is less than or equal to line 32, subtract the sum of lines 42 and 45 from line 40, and enter the result on line 46 (if zero or less, enter 0). 

Additional Information 
Completely fill out the information requested in order to assist in calculating credit for increased research activity you may be qualified to 
claim and aid in processing your return. 

Information and Assistance 
Website:  www.revenue.state.mn.us 
Email:  BusinessIncome.tax@state.mn.us    
Phone:  651-556-3075  
This material is available in alternate formats. 

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