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The Minnesota Angel Tax Credit Program, which gives tax credits to qualified investors in Minnesota start-ups, said it was responsible for creating 102 new jobs last year, according to a state report released on Tuesday.
The program gave about $15.8 million worth of tax credits to investors, after investors put in $63.1 million into 113 Minnesota start-ups last year. The program has brought in a total of 162 jobs since it started in the summer of 2010, the report said.
But whether the program can keep up its pace remains unclear. This year, the program has only $12 million in tax credits to allocate to investors, compared with $16 million last year. Trade association LifeScience Alley said it plans to lobby the state to increase that amount to $25 million in 2012. A bill is also being considered by the State Legislature that would increase the annual cap on angel tax credit allocations to $17 million from 2012 to 2014. The chief author of the bill is Rep. Greg Davids, R-Preston.
Investors must invest at least $10,000 into Minnesota start-ups and meet certain criteria to qualify for the tax credit.
The job creation numbers are determined by data provided by the program’s businesses. The businesses report the number of employees prior to receiving the investment and at the end of the year.