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Angel Tax Credit

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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

For 2016, $15.5 million in credits was available, $7.5 million of which was reserved until Sept. 30, 2016, for minority- and women-owned businesses, as well as businesses located in Greater Minnesota. As of 12/5/2016, $1.3M in credits remain.

Application Period

We are currently accepting both 2016 and 2017 certification applications. Certification applications for 2016 must be submitted on our paper forms, whereas 2017 certification applications can be submitted using our online system. We are also accepting 2016 credit allocation applications and will do so until the 2016 credits are exhausted. We also remind program participants that 2016 annual reports are due prior to 2/1/2017 and can be submitted using our online system.

New This Year

Investors investing through the new MNvest crowd sourcing program can participate in the Angel Tax Credit Program. Businesses utilizing service contracts must meet the requirement that 51% of the value of such contracts be performed in Minnesota.

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.

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