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    3                                                                           FINAL DRAFT 10/2/23                                                                                                                                                                                      3
    4                                                                                                                                                                                                                                                                                    4
    5                                                                                                                                                                                                                                                                                    5
    6                                                                                                                                                                                                     *237011*                                                                       6
    7                                                                                                                                                                                                                                                                                    7
       2023 RD, Credit for Increasing Research Activities
    8                                                                                                                                                                                                                                                                                    8
    9  Unitary businesses: Complete a separate Schedule RD for each corporation that is claiming the credit.                                                                                                                                                                             9
    10                                                                                                                                                                                                                                                                                   10
    11 NAME OF CORPORATION                                                                                   123456789                                                                                                                                     123456789                     11
    12 Name of Corporation                                                                                   FEIN                                                                                                                                          Minnesota Tax ID              12
    13                                                                                                                              Round amounts to nearest whole dollar.                                                                                                               13
    14   1  Wages for qualified services (do not include wages used in                                                                                                                                                                                                                   14
    15     figuring the work opportunity credit)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . 1                                                                       123456789                 15
    16                                                                                                                                                                                                                                                                                   16
    17   2  Cost of supplies    . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . .  . 2                                                    123456789                 17
    18                                                                                                                                                                                                                                                                                   18
    19   3  Amounts paid or incurred for the right to use computers to conduct research                       . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . 3                                                                                     123456789                 19
    20                                                                                                                                                                                                                                                                                   20
    21   4  Applicable percentage of contract expenses                           . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . 4                                                     123456789                 21
    22                                                                                                                                                                                                                                                                                   22
    23   5  Amount paid to qualified research organizations for basic research  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . .  . 5                                                                                               123456789                 23
    24                                                                                                                                                                                                                                                                                   24
    25   6  Development contributions to a nonprofit organization   . . .  . . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . . .  . 6                                                                                        123456789                 25
    26                                                                                                                                                                                                                                                                                   26
    27   7  Total qualified research expenses in Minnesota for the tax year (add lines 1 through 6)   .  . . . . . .  . . . . . .  . . . . .  . 7                                                                                                              123456789                 27
    28                                                                                                                                                                                                                                                                                   28
    29                                                                                                                                                                                                                                                                                   29
    30                                                                          A- Minnesota Sales           B- Minnesota Qualified                                                                                                                                                      30
                                                                                and Receipts                 Research Expenses
    31                                                                                                                                                                                                                                                                                   31
    32   8  Tax year 1988 . . .  . . . . . .  . . . . .  . . . . . . .       8  123456789                    123456789                                                                                                                                                                   32
    33                                                                                                                                                                                                                                                                                   33
    34   9  Tax year 1987 . . .  . . . . . .  . . . . .  . . . . . . .       9  123456789                    123456789                                                                                                                                                                   34
    35                                                                                                                                                                                                                                                                                   35
    36  10  Tax year 1986   . . .  . . . . . . .  . . . . .  . . . . .     10   123456789                    123456789                                                                                                                                                                   36
    37                                                                                                                                                                                                                                                                                   37
    38  11  Tax year 1985   . . .  . . . . . . .  . . . . .  . . . . .     11   123456789                    123456789                                                                                                                                                                   38
    39                                                                                                                                                                                                                                                                                   39
    40  12  Tax year 1984   . . .  . . . . . . .  . . . . .  . . . . .     12   123456789                    123456789                                                                                                                                                                   40
    41                                                                                                                                                                                                                                                                                   41
    42  13  Add lines 8 through 12  . . .  . . . . . .  . . . .     13          123456789                    123456789                                                                                                                                                                   42
    43                                                                                                                                                                                                                                                                                   43
    44  14  Fixed base percentage (divide line 13B by line 13A; do not fill in more than 16% [.16]).                                                                                                                                                                                     44
    45     Start-up companies, see instructions   . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  .  . 14                                                                   123456789                 45
    46                                                                                                                                                                                                                                                                                   46
    47  15  Tax year 2022 . . .  . . . . . .  . . . . .  . . . . . . .  .  . 15 123456789                                                                                                                                                                                                47
    48                                                                                                                                                                                                                                                                                   48
    49  16  Tax year 2021 . . .  . . . . . .  . . . . .  . . . . . . .     16   123456789                                                                                                                                                                                                49
    50                                                                                                                                                                                                                                                                                   50
    51  17  Tax year 2020 . . .  . . . . . .  . . . . .  . . . . . . .     17   123456789                                                                                                                                                                                                51
    52                                                                                                                                                                                                                                                                                   52
    53  18  Tax year 2019 . . .  . . . . . .  . . . . .  . . . . . . .     18   123456789                                                                                                                                                                                                53
    54                                                                                                                                                                                                                                                                                   54
    55  19  Add lines 15 through 18  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  .  . 19                                                        123456789                 55
    56                                                                                                                                                                                                                                                                                   56
    57  20  Average annual gross receipts (multiply line 19 by 25% [.25])  .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  .20                                                                                       123456789                 57
    58                                                                                                                                                                                                                                                                                   58
    59  21  Multiply line 20 by the percentage on line 14  . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  .  . 21                                                                         123456789                 59
    60                                                                                                                                                                                                                                                                                   60
    61  22  Multiply line 7 by 50% (.50)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22  123456789                 61
    62                                                                                                                                                                                                                                                         Continued next page       62
    63                                                                                            9995                                                                                                                                                                                   63
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    65                                                                                                                                                                                                                                                                                   65

    1                                                                                                                                                                                                                                                                                    1
  2 4  6  8 10 12  14      16  18  20 22  24  26  28  30        32  34  36          38  40       42  44  46           48  50     52  54  56            58  60  62          64  66                                                                              68  70 72  74  76 78  80  82  84  86
    3                                                                  FINAL DRAFT 10/2/23                                                                                                                                                                                               3
    4                                                                                                                                                                                                                                                                                    4
       2023 Schedule RD, page 2
    5                                                                                                                                                                                                                                                                                    5
    6                                                                                                                                                                                               *237021*                                                                             6
    7                                                                                                                                                                                                                                                                                    7
    8  NAME OF CORPORATION                                                                                                   123456789                                                                                                                     123456789                     8
    9  Name of Corporation                                                                                                     FEIN                                                                                                                           Minnesota Tax ID           9
    10                                                                                                                                                            Round amounts to nearest whole dollar.                                                                                 10
    11                                                                                                                                                                                                                                                                                   11
    12  23  Base amount (enter amount from line 21 or line 22, whichever is greater)                             . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .  .              23                                                         123456789                 12
    13                                                                                                                                                                                                                                                                                   13
    14  24  Subtract line 23 from line 7 (if result is zero or less, leave blank)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . .  .                          24                                                         123456789                 14
    15                                                                                                                                                                                                                                                                                   15
    16  25  Enter the amount from line 24 or $2,000,000, whichever is less  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . .  .                                 25                                                         123456789                 16
    17                                                                                                                                                                                                                                                                                   17
    18  26  Subtract line 25 from line 24  . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . .  . 26                                                           123456789                 18
    19                                                                                                                                                                                                                                                                                   19
    20  27  Multiply line 25 by 10% (.10)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . .  . 27                                                           123456789                 20
    21                                                                                                                                                                                                                                                                                   21
    22  28  Multiply line 26 by 4% (.04)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 28  123456789                 22
    23                                                                                                                                                                                                                                                                                   23
    24  29 Current credit   (add lines 27 and 28)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . .29  . . . .  .                                                                     123456789                 24
    25                                                                                                                                                                                                                                                                                   25
    26  30  Your share of any credit from a partnership (see instructions)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . .  . 30                                                                                         123456789                 26
    27                                                                                                                                                                                                                                                                                   27
    28  31  Tentative credit (add lines 29 and 30; see instructions)            . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . .  . 31                                                                        123456789                 28
    29                                                                                                                                                                                                                                                                                   29
    30  32  Limitation (see instructions) . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . .  . 32                                                              123456789                 30
    31                                                                                                                                                                                                                                                                                   31
    32  33  Credit for increasing research activities (enter line 31 or line 32, whichever is less)  .  . . . . . .  . . . . . .  . . . . .  . . . . .  . 33                                                                                                   123456789                 32
    33                                                                                                                                                                                                                                                                                   33
    34  34  Total credit allocated to other members of the combined return (see instructions)   . .  . . . . .  . . . . .  . . . . . .  . . .  . 34                                                                                                            123456789                 34
    35                                                                                                                                                                                                                                                                                   35
    36  35  Add lines 33 and 34   . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . .  . 35                                                         123456789                 36
    37                                                                                                                                                                                                                                                                                   37
    38  36  Subtract line 35 from line 31  . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . 36                                                                123456789                 38
    39                                                                                                                                                                                                                                                                                   39
    40  37  Current year credit from other members of the combined return (see instructions)  . . .  . . . . . .  . . . . .  . . . . . . .  . 37                                                                                                               123456789                 40
    41                                                                                                                                                                                                                                                                                   41
    42  38  Add lines 33 and 37   . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . .  . 38                                                         123456789                 42
    43                                                                                                                                                                                                                                                                                   43
    44  39  Your credit carryover from 2022 (see instructions)  . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . 39                                                                                  123456789                 44
    45                                                                                                                                                                                                                                                                                   45
    46  40  Add lines 38 and 39   . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . .  . 40                                                         123456789                 46
    47                                                                                                                                                                                                                                                                                   47
    48  41  Total carryover credit received from other members of the combined return (see instructions)  . . . . . .  . . . . .  . 41                                                                                                                         123456789                 48
    49                                                                                                                                                                                                                                                                                   49
    50  42  Total carryover credit allocated to other members of the combined return (see instructions)  . . .  . . . . . .  . . . .  . 42                                                                                                                     123456789                 50
    51                                                                                                                                                                                                                                                                                   51
    52  43  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . .  . 43                                                                                          52
    53                                                                                                                                                                                                                                                                                   53
    54  44  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . .  . 44                                                                                          54
    55                                                                                                                                                                                                                                                                                   55
    56  45  2023 Credit (enter line 32 or the sum of lines 40 and 41, whichever is less) Enter on Form M4T line 18 . . .  . .  . 45                                                                                                                            123456789                 56
    57                                                                                                                                                                                                                                                                                   57
    58  46  Credit carryover to 2024 (see instructions)   . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . 46                                                                           123456789                 58
    59                                                                                                                                                                                                                                                                                   59
    60 Attach this schedule and a copy of federal Form 6765 to your Minnesota return.                                                                                                                                                                                                    60
    61                                                                                                                                                                                                                                                                                   61
    62                                                                                                                                                                                                                                                         Continued next page       62
    63                                                                                                                                                                                                                                                                                   63
                                                                                                 9995
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    1                                                                                                                                                                                                                                                        1
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    3                                                                                    FINAL DRAFT 10/2/23                                                                                                                                                 3
    4  2023 Schedule RD, page 3                                                                                                                                                                                                                              4
    5                                                                                                                                                                                                                                                        5
    6                                                                                                                                                                                                        *237051*                                        6
    7                                                                                                                                                                                                                                                        7
    8  NAME OF CORPORATION                                                                                                                            123456789                                                  123456789                                   8
    9  Name of Corporation                                                                                                                            FEIN                                                         Minnesota Tax ID                          9
    10                                                                                                                                                                                                                                                       10
    11     Additional Information. Please check the appropriate box.                                                                                                                                                                                         11
    12     1.  Did a CPA, attorney, consultant or other:                                                                                                                                                                                 Yes No              12
    13        a.  Assist in the calculation or preparation of the tax credit?  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  1a   . .                                         X   X               13
    14                                                                                                                                                                                                                                                       14
    15        b.  Conduct a R&D tax credit study?  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .1b   .  . .                           X   X               15
    16        If “Yes” is checked on lines 1a or 1b, provide the following information for each individual who assisted in the calculation or preparation                                                                                                    16
    17        of the tax credit or conducted a tax credit study. (If more than one individual, attach a schedule for each with the following information):                                                                                                   17
    18        Individual’s Name                                                                                                            Individual’s Title                                                                                                18
    19        INDIVIDUAL’S NAME                                                                                                          INDIVIDUAL’S TITLE                                                                                                  19
    20        Individual’s Company                                                                                                         Individual’s Phone Number                                                                                         20
    21        INDIVIDUAL’S COMPANY                                                                                                       6515551234                                                                                                          21
    22        c.  If “Yes” is checked on lines 1a or 1b, may the Minnesota Department of Revenue discuss the tax credit with the                                                                                                                             22
    23            individual(s) who assisted in the calculation or preparation of the tax credit or conducted a tax credit study?   . . . .  . .   1c                                                                                    X   X               23
                                                                                                                                   Review of                                    Combination of review of  
    24                                                                                                                        contemporaneous                Estimation                contemporaneous                                                       24
                                                                                                                                     records                                       records and estimation
    25     2.  How were the following calculated: check appropriate box.                                                                                                                                                                                     25
    26        a.  Wages . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . .  .      2a             X                          X                            X                                                              26
    27                                                                                                                                                                                                                                                       27
    28        b.  Supplies   . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . 2b   .                X                          X                            X                                                              28
    29                                                                                                                                                                                                                                                       29
    30        c.  Contracted Research  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . .     2c                          X                          X                            X                                                              30
    31     3.  Were the following performed/conducted within the state of Minnesota:                                                                                                                                                                         31
    32        a.  Wages . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . . 3a   . . .  .     X   X               32
    33                                                                                                                                                                                                                                                       33
    34        b.  Contracted Research  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . 3b  . . .  .                 X   X               34
    35        If “No” is checked on lines 3a or 3b, the taxpayer cannot claim those expenses in calculating the tax credit.                                                                                                                                  35
    36     4.  Was the claimed research performed at the request of another individual or entity?   . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . 4   .                                                               X   X               36
    37                                                                                                                                                                                                                                                       37
    38     5.  Was the claimed research performed as part of a joint venture with another individual or entity?   . . .  . . . . .  . . . . . .  . . . . .  .   5                                                                        X   X               38
    39                                                                                                                                                                                                                                                       39
           6. Did you receive an Innovation Grant from the Minnesota Department of Employment  
    40        and Economic Development (DEED)?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6   .  .  .  . X.   .  .  . X.  .  .  .  .  .  .  .  .  . 40.  .  .     
    41        If “Yes” is checked, see instructions for lines 1-6 Qualified Expenses.                                                                                                                                                                        41
    42                                                                                                                                                                                                                                                       42
    43                                                                                                                                                                                                                                                       43
    44                                                                                                                                                                                                                                                       44
    45                                                                                                                                                                                                                                                       45
    46                                                                                                                                                                                                                                                       46
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    48                                                                                                                                                                                                                                                       48
    49                                                                                                                                                                                                                                                       49
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    63                                                                                                                                                                                                                                                       63
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    65                                                                                                                                                                                                                                                       65

                                              FINAL DRAFT 10/2/23
 2023 Schedule RD Instructions

 If your business paid qualified research and development expenses in Minnesota, and those expenses exceed a base 
 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 14 minus the sum of lines 19 and 21. If the result is zero or less, leave blank.
                                                                                                                          Continued                   1

                                                FINAL DRAFT 10/2/23
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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