Angel Tax Credit
Minnesota's Angel Tax Credit provides a 25% 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.
Tax credit certificates for qualified investments that occurred in 2022 were issued by email on February 22, 2023. If you are unable to locate your tax credit certificate, verify that the message was not quarantined by your spam filter. If you still need assistance, contact us by email at firstname.lastname@example.org or call the Angel hotline at 651-259-7599.
For 2023, $5 million in credits is available, $2.5 million of which is reserved for minority- and women-owned businesses, as well as businesses located in Greater Minnesota ("targeted businesses"), until 9/30/23, at which time an unused reserved credits become available for investment in any qualified business.
As of May 30, 2023, $2.5 million in general credits and $2.5 million in targeted credits remain available for allocation.
2023 Certification Applications can be submitted beginning on May 30, 2023.
Applications are currently being accepted. 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.
The qualifying criteria, applications, instructions and documents businesses need to apply for the Angel Tax Credit.
The qualifying criteria, applications, instructions, and documents investors need to apply for the Angel Tax Credit.
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.