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SF 3505

Receipt of National Institutes of Health funding income tax refundable credit authorization

2025-2026 Regular Session Introduced by Alice Mann

Minnesota authorizes refundable income tax credits for NIH funding recipients to attract research talent and institutions to the state.

Referred to Taxes
#healthandhealthdepartment #taxation #taxation-income
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Bill Summary · SF 3505

Legislative bill overview

SF 3505 authorizes a refundable income tax credit for individuals and entities that receive funding from the National Institutes of Health (NIH). The bill would allow taxpayers to claim a credit against their state income tax liability based on NIH grant or contract income received during the tax year.

Why is this important

Minnesota hosts significant biomedical research infrastructure and NIH-funded researchers. This credit could make the state more competitive in attracting and retaining NIH-funded scientists and research institutions, potentially boosting the state's life sciences sector and research economy.

Potential points of contention

  • Revenue impact: The refundable nature means the state could pay out more in credits than it collects in taxes from these recipients, creating direct budget costs that would need to be offset
  • Scope ambiguity: The bill's language regarding which NIH funding qualifies and how the credit is calculated may need clarification to avoid disputes or unintended consequences
  • Equity questions: Critics might argue public tax dollars shouldn't subsidize federally-funded research that's already receiving substantial NIH support, or that the credit disproportionately benefits higher-income researchers

Compiled from official sources — confirm details with the bill’s official record.

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