Angel Tax Credit

Minnesota's Angel Tax Credit provides a 25-percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The maximum credit is $125,000 per person, per year ($250,000 if filing jointly). The credit is refundable. Residents of other states and foreign countries are eligible.

Available Funding

A total of $16 million in tax credits is available, divided into two parts:

  • $7.5 million is reserved until Sept. 30 for investments in businesses owned by women or minorities or in businesses located in Greater Minnesota. As of 9/1/2015, $3.7 million remains. On Oct. 1, any remaining tax credits not allocated to these targeted businesses will be made available to others.
  • On 7/17/2015, the $8.5 million in credits for other businesses was fully allocated. HOWEVER, as it appears that additional credits will be available from the designated portion above, we are now accepting credit allocation applications for these credits, though they will not be processed until October 1. Credit allocation applications received between now and October 1 for this portion of the program will be date-stamped as having been received on October 1 (and will share proportionally in the credits available should demand exceed supply). Credit allocation applications received after October 1 will be processed on a first-come, first-served basis until the credits are exhausted. 

Application Period

We are currently accepting certification applications and credit allocation applications, as described above. We will do so until the credits are exhausted. 2015 Angel Tax Credit Certificates will be emailed to investors in January 2016.

New This Year

"Insiders” are no longer eligible for the credit. That includes officers, principals, 20-percent owners and family with ownership interests combined, and family of these insiders.

For Businesses

The qualifying criteria, applications, instructions and documents businesses need to apply for the Angel Tax Credit.

For Investors

The qualifying criteria, applications, instructions, and documents investors need to apply for the Angel Tax Credit.

For Funds

The qualifying criteria, applications, instructions and documents funds need to apply for the Angel Tax Credit.

Lists and Reports

Lists of certified businesses, investors, funds and other key Angel Tax Credit documents.

FAQs

Answers to common questions about requirements for business, investors and funds.