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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 make equity investments in 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. View our Fact Sheet.

Available Funding

The 2021 program began the year with a total of $10.2 million in credits available for the calendar year, with $5.2 million for investments in general businesses ("general credits") and $5.0 million reserved for investments made in businesses 51% or more owned and managed by minorities or women or headquartered in Greater Minnesota ("reserved credits"). As of 01/18/2021, $3.5 million in general credits remain, and $4.9 million in reserved credits remain. Any remaining reserved credits not allocated by October 1, 2021 become available on that date for investments in any qualified business.

Application Period

We are accepting Certification Applications for the 2021 program. You are strongly urged to use the online certification process, including payment of certification fees online, as we are working remotely. Mailing a certification application or a check for the certification fees will result in significantly delayed processing.

Once we have notified you that your certification application has been approved, you may begin submitting Credit Allocation Applications provided that all parties (business and investor or fund) have been approved. Investments made prior to the approval of a credit allocation application are not eligible for the tax credit. We strongly urge you to use the new online Credit Allocation Application process for faster service.

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.

FAQs

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

Lists and Reports

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

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