State launches next round of angel tax credits to investors of small firms
- Blog Post by: Dee DePass
- November 18, 2011 - 6:51 PM
The state is accepting applications from investors and companies wanting to participate in the Minnesota Angel Tax Credit Program in 2012.
The program offers a $12 million pool of angel tax credits to qualified investors of small start up firms that need cash to hire workers and buy supplies and equipment.
investors may receive a 25 percent tax credit on investments of at least $10,000 in emerging companies that specialize in high technology or new proprietary technology. The businesses that receive the angel funding cannot have more than 25 workers or be older than 10 years. And at least half of their workforce must be in the state of Minnesota.
The state’s Department of Employment and Economic Development (DEED) had $16 million in angel tax credits available in 2011, but officials said those credits ran out this week because of strong response to the program.
Since launching in July 2010, the state has made $23 million in tax credits available to investors.
"The Angel Tax Credit Program has been a huge success," said DEED Commissioner Mark Phillips. "This program is making investment funding available to promising startups that often struggle to attract capital in their early stages of development."
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