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.
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. On 10/1/2016, $5.1M of unused reserved credits became available for general usage; credit allocations in queue as of that date were then approved. As of 10/24/2016, $2.9M in credits remain. For a historical perspective, $3.1M in credits were available 10/1/2015 and were all used by 11/15/2015.
We are currently accepting 2016 certification applications and credit allocation applications and will do so until the 2016 credits are exhausted. We will begin accepting 2017 certification applications on November 1.
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.