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 is available, $7.5 million of which is reserved until Sept. 30, 2016, for minority- and women-owned businesses, as well as businesses located in Greater Minnesota. As of 8/23/2016, $6.0M remains available for these targeted businesses, but the credits for general businesses have been exhausted and we are no longer accepting credit allocation applications for investments in them. We will begin accepting credit allocations for non-targeted businesses on September 15, in anticipation of reserved credits becoming available for all businesses on October 1. Non-targeted business credit allocation applications received between September 15 and close of business September 30 will be date stamped September 30, regardless of the date actually received, and will be processed accordingly. Credit allocation applications received after September 30 will be processed in the order received until the credits are exhausted.
We are currently accepting 2016 certification applications; credit allocation applications are being accepted only for investments in targeted businesses. See above regarding credit allocations applications for non-targeted businesses.
New This Year
Businesses can submit 2016 certification applications and 2015 annual reports online, as well as pay fees online. Follow the links on the For Businesses page's "Apply" tab.