5 reasons We Need the Angel Investment Tax Credit in Minnesota



Update III (2/3/10-11:10pm): Hearing Details –

TUESDAY, February 9, 2010
10:30 AM
Room: 200 State Office Building – (100 Rev. Dr. Martin Luther King Jr. Blvd. Saint Paul, MN 55155)
Chairs: Rep. Ann Lenczewski, Rep. Tim Mahoney
Agenda: Angel Investor and other Venture Capital Investment Bills

Update II (1/25/10-3:44pm): We have obtained a copy of the Senate Draft Summary 100122

Show your support here: http://tech.mn/news/sbitc-endorsement/

A hearing is scheduled for 2/9/2010 at 10:30 at the State Capitol in front of the joint House Tax & BioScience Committees. Contact us for details…

Original Post:

By Ernest Grumbles III, via Star Tribune

Angels are individual, sophisticated investors who put money into new and emerging businesses. This is good because most job growth comes from small enterprise.  Sometimes, though, it’s a trick to get angel money to move, especially in a down economy. One way is through tax credits. Minnesota currently has no angel tax credit, but we have the best shot we’ve had in years in getting one passed.

Read More…

Also, here’s a message we recently received from John Alexander, Chairman and Founder of Twin Cities Angels Funds:

“CEO’s of early stage companies in Minnesota:
As you may have seen in the media, we are preparing for hearings on the Angel Tax Credit.  I would like to have your support for the bill in two ways:

One,  I’d like to get your name on a document supporting the bill, and

Two, if you are available, it would be helpful it you can attend one or more of the hearings.”

We will keep our audience appraised of more activity in this space, including bill text, petitions, and hearing details as their known.  It’s understood that “IT” was  excluded from the original text of the bill but has since been added to cover the sector “In it’s broadest terms”.

For more background on this issue, the aggregated links below appear in chronological order from oldest to newest:

Session Will Feature Competing Angel Investor Bills – Jan 20

Lenczewski Angel Grant Proposal Lambasted By DFL and GOP Critics – Jan 20

Investors May Finally be close to Angel Credit – Jan 19

Shocker! Angel Investment Tax Credit Drive in Minnesota Hits Snag – Jan 13

Can Minnesota Finally Pass an Angel Investment Tax Credit?  Is this A Trick Question? – Dec 10

Please add any links, updates, or insights in comment section.