1.1.................... moves to amend H. F. No. 1812, the first engrossment, as follows:
1.2Page 249, after line 9 insert:

1.3    "Sec. 30. Minnesota Statutes 2006, section 290.068, subdivision 1, is amended to read:
1.4    Subdivision 1. Credit allowed. A corporation, other than a corporation treated as
1.5an "S" corporation under section 290.9725, is allowed a credit against the portion of the
1.6franchise tax computed under section 290.06, subdivision 1, for the taxable year equal to:
1.7    (a) 5 five percent of the first $2,000,000 of the excess (if any) of
1.8    (1) the qualified research expenses for the taxable year, over
1.9    (2) the base amount; and
1.10    (b) 2.5 percent on all of such excess expenses over $2,000,000.
1.11EFFECTIVE DATE.This section is effective for taxable years beginning after
1.12December 31, 2007.

1.13    Sec. 31. Minnesota Statutes 2006, section 290.068, subdivision 4, is amended to read:
1.14    Subd. 4. Partnerships Allocation. (a) In the case of partnerships and except as
1.15provided under paragraph (b), the credit shall be allocated in the same manner provided by
1.16section 41(f)(2) of the Internal Revenue Code.
1.17    (b) For a unitary business, as defined in section 290.17, subdivision 4, the business
1.18may allocate or transfer the credit of any entity under this section for the taxable year to
1.19another member of the unitary business.
1.20EFFECTIVE DATE.This section is effective for taxable years beginning after
1.21December 31, 2007."
1.22Renumber the sections in sequence and correct the internal references
1.23Amend the title accordingly