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 $15 million in tax credits is available, divided into two equal 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. Beginning Oct. 1, any remaining tax credits not allocated to these targeted businesses will be made available to others.
  • Another $7.5 million in credits is available for investments in other businesses. Based on past experience, we expect these credits to be allocated quickly - most likely by Feb. 1.

Application Period

We are currently accepting certification applications for the 2015 program. We'll begin accepting credit allocation applications on Jan. 1.

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.