Angel Tax Credit applications being accepted
The Minnesota Department of Employment and Economic Development (DEED) is now accepting applications from businesses, investors and funds to participate in the Minnesota Angel Tax Credit program.
According to DEED Commissioner Steve Grove, this tax credit provides an incentive for "angel investors" to help Minnesota businesses raise capital to start up and grow.
"When we invest in startups and small businesses," said Grove, "we grow employment, we grow our economy and we lay the groundwork for a future in which Minnesota is a national leader in the innovation sector."
The Minnesota Legislature authorized $10 million in tax credits for 2019, with another $10 million in 2021. Half of the funding each year is reserved for minority-, woman- and veteran-owned and managed businesses and businesses located in Greater Minnesota.
"The Angel Tax Credit is an essential investment in Minnesota's economy and our future," said Gov. Tim Walz.
The Angel program is now part of Launch Minnesota, a new initiative to grow Minnesota's startup ecosystem. The program provides a 25-percent tax 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 tax credit stimulates private investment in emerging Minnesota businesses to encourage job creation.
From 2010 to 2017, the Angel Tax Credit provided $418 million in investment to 430 start-up businesses. After sunsetting in December 2017, it was reinstated earlier this year.
The minimum qualifying investment is $10,000 for non-targeted businesses. The minimum qualifying investment for woman/minority/veteran-owned and Greater Minnesota businesses is $7,500.
For more details about DEED and its services, visit mn.gov/deed/ or follow DEED on Twitter.