A state program that gives investors tax credits for putting money in Minnesota start-ups, could run out of its incentives today, an official said.
The Minnesota Angel Tax Credit program offers qualified individuals a 25 percent tax credit on their investments of at least $10,000 in Minnesota start-ups. Due to the popularity of the program, it's likely the amount of tax credits that the state can allocate this year will run out later today or tomorrow, said Jeff Nelson, the program's coordinator.That's faster than the state's earlier estimate of the tax credits running out in early December.
"We are going through them rapidly," Nelson said.
The state was allowed to give $16 million in tax credits this year. As of yesterday, only $258,000 worth of tax credits remained, Nelson said. Once the this year's tax credits run out, the program will not be able to give more tax credits until Jan. 1.
Minnesota start-ups have gained $53.2 million in investment under the program, according to data released in October.
