Angel Tax Credit
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.
The Angel Tax Program was not funded for 2020.
For the 2021 program, $10.3 million in credits are available beginning January 4, 2021. $5.0 million of these credits are reserved for investments made in businesses 51% or more owned and managed by minorities or women or headquartered in Greater Minnesota ("targeted businesses"). If these reserved credits are not allocated by October 1, 2021, they become available for investments in any qualified business.
We are now 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, but please note we cannot process or approve any Credit Allocations until the new year 2021 begins. 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.