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Angel Tax Credit

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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.

Available Funding

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. As of 3/27/17, $4.1 million remains available for investment in general business and $4.6 million for targeted businesses.

2016 Tax Credit Certificates

We emailed Angel Tax Credit Certificates to eligible investors for 2016 investments on 2/9/2017. If you did not receive yours, please check your Junk or Spam inbox first, and if it is not there contact us at angel.credit@state.mn.us; be sure to include your current email address.

Application Period

We are accepting 2017 certification and credit allocation applications. 2016 annual reports were due by 2/1/2017; later filers will note that a statutorily mandated $500 late filing penalty is now required in addition to the $100 filing fee.

New This Year

Investors investing through the new MNvest crowd sourcing program can participate in the Angel Tax Credit Program. Businesses utilizing service contracts must meet the requirement that 51% of the value of such contracts be performed in Minnesota.

For Businesses

The qualifying criteria, applications, instructions and documents businesses need to apply for the Angel Tax Credit.

For Investors

The qualifying criteria, applications, instructions, and documents investors need to apply for the Angel Tax Credit.

For Funds

The qualifying criteria, applications, instructions and documents funds need to apply for the Angel Tax Credit.

Lists and Reports

Lists of certified businesses, investors, funds and other key Angel Tax Credit documents.

FAQs

Answers to common questions about requirements for business, investors and funds.

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