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Medical Alley Association serves the individuals and organizations that comprise Minnesota's health industry by influencing policy, fostering connections and providing critical intelligence to improve the quality of health around the world.

Medical Alley Association serves the individuals and organizations that comprise Minnesota's health industry by influencing policy, fostering connections and providing critical intelligence to improve the quality of health around the world.

Top Priority: Research & Development Tax Credit Enhancement

Minnesota continues to lose ground to other states in competing for R&D jobs and investment. In 1984, Minnesota was the leader – the first state to institute an R&D tax credit. Today, our support for R&D is quickly sliding down the rankings in competitiveness.

Currently, 39 states offer R&D tax credits for qualifying research expenses—10 of these states offer refundability.  Additionally, a significant number of counties now offer robust R&D tax credits as a part of their innovation-led economic development strategies. Minnesota’s antiquated and weak R&D tax credit puts our state’s economic future at risk.

The Office of the Legislative Auditor is conducting an evaluation of the R&D tax credit and will publish a report in early February.  MAA will report back the findings of this report.    

The time is NOW to make this tax credit more robust.  Minnesota’s Medical Alley is seeing a resurgence in research and development in health technology startups, most notably our expanding digital health community.  Investors are looking to Minnesota because we have the talent, ecosystem, and expertise.  A more competitive R&D tax credit would seal the deal for investors to invest in Medical Alley.