Apply
Applying for the Angel Tax Credit is a four-step process. Steps 1-2 must be approved before a qualifying investment is made.
Before submitting an application, complete the Investor Certification Checklist to determine your eligibility for the Angel Tax Credit Program.
Step One: CERTIFICATION
Here's what happens next:
- If we need additional information, we will contact you; otherwise we will send you a certification approval or denial email within 30 days (often in about one week).
- Upon certification, your name will be posted on our website. All other information you submit is non-public data.
- Authorized persons acting on behalf of an investor who wish to discuss an investor certification application with us should submit a Power of Attorney form.
Step Two: CREDIT ALLOCATION
After certification, a business and investor jointly complete a Credit Allocation Application.
Here's what happens next:
- We will send the investor and business a credit allocation approval email within 15 days (often in about one week).
- Only investments made after the date of the credit allocation approval email qualify for the credit.
- Upon approval, the proposed investment transaction needs to be completed within 60 days, or by December 31, whichever is sooner.
Step Three: PROOF OF INVESTMENT
Within 15 days of the investment transaction, the business submits a Proof of Investment online along with providing the following documentation:
- A copy of the underlying transaction document (e.g., an executed subscription agreement).
- A copy of the investor's check made out to the business, or a copy of the wire transfer:
- A copy of the check serves as evidence that the certified investor made the investment. If it does not, you must provide documentation showing a clear audit trail from the certified investor to the business.
- A wire transfer needs to show the certified investor as the originator and the certified business as the beneficiary.
- A copy of the business' bank deposit receipt (not a deposit slip) with the business' name and account number showing the deposit(s) being made:
- A bank deposit receipt needs to show the certified business as the depositor, with business name and account number. If it does not, include a bank statement with the business' name and account number.
- If an escrow account is used, submit documentation showing both the deposit into escrow and the transfer from escrow into the business' account (note: the latter is considered the date of investment).
We will send the investor and business a proof of investment approval email after processing the submission.
Step Four: ANNUAL REPORT
Investors need to file an Investor Annual Report and pay a $100 filing fee by February 1.
- Reports filed after February 1 incur an additional $100 late filing penalty.
- Investor annual reports need to be filed for three years from the date of the latest investment.
We will send you an annual report approval email after processing the report.
HOW TO CLAIM THE ANGEL TAX CREDIT
We email Angel Tax Credit Certificates for qualifying investments by January or February of the year following the investment. Investors need to file a Minnesota Individual Income Tax Return (Form M1) and claim the credit on Schedule M1REF, Business and Investment Credits. Investors who do not live in Minnesota may also need to file Schedule M1NR, Nonresidents/Part-Year Residents. Forms are available on the Minnesota Department of Revenue's website.
