Funds need to meet these criteria to participate in the Angel Tax Credit program:
Before submitting an application, complete the Fund Certification Checklist to 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.
Start by creating an Fund Account with a user name and password. Create account now.
Once you have an account, you can complete the Fund Certification Application and pay the $1,000 filing fee.
Here's what happens next:
After certification, the business and investor jointly complete a 2015 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:
1. A copy of the underlying transaction document (e.g., a signed investor/subscription agreement)
2. A copy of the investor’s or fund’s wire transfer or check made out to the business
a. A wire transfer receipt needs show the certified investor as the originator and the certified
business as the beneficiary
b. check copy needs show the certified investor as the maker
3. A copy of the business’ bank deposit receipt (not a deposit slip) or bank statement showing the
deposit(s) being made
a. A deposit receipt needs to show the certified business as the depositor
b. If an escrow account is used, submit documentation showing both the deposit into escrow and
the transfer from escrow into the business’ account.
(Note: the latter is considered the date of investment)
We will send the fund and business a Proof of Investment approval email after processing the submission.
Funds need to file a Fund Annual Report by February 1st along with a $100 filing fee. Log in or create your account to file the report.
We will send you an annual report approval email after processing the report.
Funds need to hold a qualifying investment for three years or the Angel Tax Credit will be revoked and will have to be repaid by the investor, unless one of these exceptions is met:
We email Angel Tax Credit Certificates for qualifying investments directly to the fund's investors (NOT to the fund) by January or February of the year following the investment. Investors need to file a Minnesota Individual Income Tax Return (Form M1) and claim the credit on Schedule M1B, Business and Investment Credits. Investors who do not live in Minnesota may also need to file Schedule M1NR, Nonresidents/Part-Year Residents. Forms are available on the Minnesota Department of Revenue's website .
Download the "Minnesota’s Angel Tax – Small Corporate Offering Registration" 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.