The Minnesota Angel Tax Credit (ATC) is an essential investment in Minnesota’s economy and our future. The ATC 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 encourages high-paying job creation. Medical device, software, and biotech businesses are the top industries benefiting from the ATC. 

As of December 10, there is $750,000 in credits remaining for 2019 – so there’s still time to participate, but the cutoff date for investments to qualify for the credit is December 31. The program will not operate in 2020, but will be back the following year. The Minnesota Legislature authorized $10 million in tax 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. 

Since its inception in 2010, the ATC has provided over $450 million in investment to 430 start-up businesses. Over 1,500 businesses, over 4,600 investors, and nearly 200 funds have been certified to participate 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. 

Minnesota has a storied history of innovation. Consider applying for the Angel Tax Credit and keeping Minnesota’s innovation economy strong.

– Deputy Commissioner Kevin McKinnon