12/20/2019 3:09:37 PM
Commissioner Steve Grove
I’m pleased to share that in only five months, DEED distributed all $10 million from the Angel Tax Credit (ATC) fund!
The ATC is a way to spur investment in Minnesota’s future businesses. The program provides a 25% tax 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. It also stimulates private investments in emerging Minnesota businesses to promote innovation and encourage high-paying job creation.
The Minnesota Legislature authorized $10 million to DEED in tax credits for 2019, with another $10 million in 2021. No funding was authorized for 2020. Half of ATC funding each year is targeted towards minority, women and veteran owned and managed businesses, as well as businesses located in Greater Minnesota.
Since its inception in 2010, the ATC has provided over $450 million in investment to 430 start-up businesses. Over 1,500 businesses, 4,600 investors, and nearly 200 funds have been certified to participates in the program. More than 1,500 jobs and thousands of contractor positions have resulted from investments incentivized by the tax credit. The minimum qualifying investment is $10,000 for non-targeted businesses, and $7,500 for women/minority/veteran and Greater Minnesota businesses.
Keep an eye for more information later this month on the businesses and investors receiving ATC credits!
–Commissioner Steve Grove
angel tax credit