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.
A total of $16 million in tax credits was available for 2015. As of Sept. 25, $3.3 million remains.
That amount is reserved until Sept. 30 for investments in businesses owned by women, minorities or in businesses located in Greater Minnesota. On Oct. 1, any remaining tax credits will be made available to others investors.
You can submit a credit allocation application for these credits now. Applications received between now and Oct. 1 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 Oct. 1 will be processed on a first-come, first-served basis until the credits are exhausted.
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.
"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.