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 2017, $10.7 million in credits is available, $5 million of which is reserved for minority- and women-owned businesses, as well as businesses located in Greater Minnesota ("targeted businesses"), until 9/30/17, at which time any unused reserved credits become available for investment in any qualified business.
On 6/16/17 we ran out of credits available for investment in general businesses. As of 9/20/17, $2.6 million in credits remain available for investment in targeted businesses. Unused reserved credits that remain on 9/30/17 become available for investments in all qualified businesses, and we began accepting credit allocation applications for them on September 5.
We are currently accepting 2017 certification applications. We are currently processing credit allocation applications only for investments in targeted businesses; we are accepting and holding credit allocations applications (totaling $1.4M in credits as of 9/20/17) for investments in general businesses--these applications will be processed beginning 10/1/17. Please note this program ends 12/31/2017 and thus will not be available in 2018.