The Minnesota Department of Employment and Economic Development has begun accepting applications from businesses, investors and funds to participate in the Minnesota Angel Tax Credit program as of Monday, July 1.
The state Legislature authorized $10 million in taxes credits for 2019, with another $10 million in 2021. Half of the funding each year is reserved for minority, women and veteran owned and managed businesses, as well as businesses located in Greater Minnesota.
“The Angel Tax Credit is an essential investment in Minnesota’s economy and our future,” said Gov. Tim Walz. “Our state has a long history of innovation. By directing capital to the small businesses and startups that can use it best, we are creating the next generation of successful innovators based right here in Minnesota.”
The Angel Tax Credit program is now part of Launch Minnesota, a new initiative to grow Minnesota’s startup ecosystem. The Angel Tax Credit program provides a 25 percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The Angel Tax Credit stimulates private investments in emerging Minnesota businesses to encourage job creation.
The minimum qualifying investment is $10,000 for non-targeted businesses. The minimum qualifying investment for women/minority/veteran and Greater Minnesota businesses is $7,500.
For more details about DEED and its services, such as the Angel Tax Credit, visit mn.gov/deed/.