Businesses need to meet these criteria to participate in the Angel Tax Credit program:
In addition, qualifying businesses need to be engaged in -- or be committed to engage in -- technological innovation in Minnesota. The primary business activity must include one or more of the following:
Proprietary Technology refers to technical innovations that are unique and legally owned or licensed by a business, including innovations that are patented, patent pending, a subject of trade secrets, or copyrighted.
Qualified high-technology fields include, aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, or similar.
These types of businesses that may not participate in the Angel Tax Credit program:
Certain professional services firms are also excluded from participating, including:
Before submitting an application, complete the Business Certification Checklist to self-determine your eligibility for the Angel Tax Credit Program.
Applying for the Angel Tax Credit is a four-step process. Steps 1-2 must be approved before a qualifying investment is made.
The 2016 certification can be submitted online.
Here's what happens next:
After certification, a business and investor or fund jointly complete a Credit Allocation Application.
Here's what happens next:
Within 15 days of the investment transaction, the business submits a Proof of Investment Form along with the following documentation:
We will send the investor or fund and the business a proof of investment approval email after processing the submission.
We will send you an annual report approval email after processing the report.
Businesses that cease operations or become insolvent need to file a Business Insolvency Report. Thereafter, the business is exempt from further annual reporting requirements.
Download the "Minnesota’s Angel Tax – Small Corporate Offering Registration (SCOR)" guidebook, or order a free copy.
Download the Angel Tax Credit fact sheet.
Watch a video about the Angel Tax Credit program.
Read the statute establishing and governing the program.
These loans and grants may be available to Angel Tax Credit Program participants:
The Angel Loan Fund (ALF) provides interest-free loans to businesses participating in the Angel Tax Credit Program.
See an informational ALF flyer.
The Greater Minnesota Internship Tax Credit Program provides tax credits for businesses, located outside the 7-county metro area, of 40 percent of student intern’s wages up to $2,000.
See an informational flyer.
SciTechsperience provides grants—in science, technology, engineering and math (STEM) disciplines—of 50 percent of intern’s wages up to $2,500.
See an informational SciTechsperience flyer.
The Innovation Voucher Program (IVP) provides vouchers up to $25,000 to pay for technical assistance/services from public higher education institutions and nonprofit entities.
The federal government’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs help fund technological innovations with commercial potential. MNSBIR supports Minnesota businesses seeking funding through these programs.
The Minnesota Angel Tax Credit Program does not provide match-making services between entrepreneurs and investors, but you may wish to engage these resources:
Use this website’s Lists and Reports page
Contact local angel and entrepreneur associations
Connect with supporting organizations
Use Minnesota’s Equity Crowdfunding Legislation