Minnesota launches tax credits for investors in high tech

Updated: July 19, 2010 - 9:32 PM

The credits are capped at 25 percent for investments up to $4 million.

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Minnesota starts accepting applications this week for new tax credits aimed at investors in high tech.

The new tax credit, which became law this spring, gives a 25 percent tax break to individuals and investment funds that provide up to $4 million in seed money to high-tech start-ups.

The effort is expected to boost jobs and the state's sagging image as a leading center of technology innovation. The state will fund $11 million in credits for 2010 and $12 million in credits a year from 2011 through 2014.

The tax credit is available to businesses, investors and investment funds that invest in a start-up less than 10 years old that has fewer than 25 workers and less than $2 million in prior equity investments.

Applicants looking for the credit must first be certified by the state's Department of Employment and Economic Development. Once certified, they can then apply for the tax credit at www.PositivelyMinnesota.com/angelcredit.

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