Minnesota Launches Angel Investor Tax Credit

By Bryan Watson

The Minnesota high-tech (medical devices, ICT, nanotechnology and cleantech) and the angel investment communities have lobbied the state government since 2001 for this tax credit as they have been proven effective in stimulating the start-up of new high-tech companies and job growth in other states.

Wisconsin and Ohio, in particular, have been successful in luring Minnesota-based entrepreneurs to their states to take advantage of investment stimulated by successful angel tax credit programs (as much as a 54% increase in angel investment in WI, as reported by panelist John Alexander, Chairman, Twin Cities Angels).

Key features of the Minnesota Angel Tax Credit include:

  • A 25 percent tax credit for investments in small, emerging businesses.
  • A maximum credit of $125,000 per person per year ($250,000 if married filing jointly).
  • Program funding of $11 million in credits in 2010 and $12 million in credits annually from 2011 through 2014.
  • A state refund if credits exceed the investor

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