A popular state program that gives incentives to investors interested in funding Minnesota start-ups has run out of tax credits for the year.
“They are all tapped out right now,” said Department of Employment and Economic Development spokesman Monte Hanson.
The department’s Minnesota Angel Tax Credit program gives qualified individuals a 25 percent tax credit on investments of at least $10,000 in Minnesota start-ups. The state allocated $16 million in tax credits to give to investors this year. Those credits have since run out, and investors will have to wait until next year to receive more tax credits.
“It shows just how popular this program is,” Hanson said. “I think it’s a sign that the program has been a success.”
Hanson said the department is accepting applications for 2012 tax credits, which will be given on a first come first serve basis. Qualified companies and investors who register now will be first in line to receive the credits, he said.
Since the program started in July 2010, it has given out $23 million in tax credits to investors, who have invested $92 million in Minnesota start-ups, Hanson said.