Angel Tax Credit
Overview
Minnesota's Angel Tax Credit provides incentives to investors or investment funds that put money into startup and emerging companies focused on high technology or new proprietary technology. The Angel Tax Credit :
- Provides a 25-percent individual income tax credit for qualified investors
- Is refundable. Non-Minnesota residents, including residents of foreign countries, are eligible for the credit
- Allows a maximum credit of $125,000 per year per individual
- Allows a maximum credit of $250,000 for those married and filing jointly
Program Suspension: No Available Funding Remaining
A total of $12.7 million in tax credits was available for 2013. As of 5/9/2013, all $12.7 million has been allocated and no credits remain. The program is being suspended pending possible additional funding by the state legislature; this will be known by the time of the current legislative session’s adjournment on May 20th.
Enacting Legislation
The Angel Tax Credit was signed into law on April 1, 2010. View the statute.
Angel Tax Credit Guidebook
Our guidebook Minnesota’s Angel Tax – Small Corporate Offering Registration lays out eligibility requirements, how the credit works, and other information about the credit. Download the book or order a print or electronic copy.
For More Information
Email Angel.Credit@state.mn.us or contact Jeff Nelson at 651-259-7523. Download an Angel Tax Credit fact sheet.
Research and Development Tax Credit
Investors who take advantage of our Angel Tax Credit may also want to learn more about Minnesota's Research and Development Tax Credit.
Awards
In 2013, we received the Economic Development Association of Minnesota's (EDAM) Economic Development Initiative award. This short video about the Angel Tax Credit program was produced in accompaniment: