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.
On May 27, 2022, the Angel Tax Credit Program exhausted its available credits for investments in all businesses; as a result we are no longer accepting certification or credit allocation applications. For 2022, $5 million in credits were available, $2.5 million of which were reserved for minority- and women-owned businesses, as well as businesses located in Greater Minnesota.
The 2022 legislative session adjourned without approving an Omnibus Tax Bill. Without passage of this bill, the proposed additional $7M of funding is not available. Check this page frequently for additional updates.
Applications are not 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.