Minnesota’s Angel Investor Tax Credit (AITC) program has more money lined-up for investors who fund Minnesota tech startups.
Introduced in 2010, the AITC provides a 25-percent credit for accredited investors or investment funds that put money into qualified companies focused on high technology or new proprietary technology.
Per program guidelines, a total of $15m was made available at the beginning the year, of which $7.5m reserved for certain business types — minority owned, female owned, and greater Minnesota operations. As part of the rules, any funds unclaimed by said groups as of September 30th are rolled-back into the general pool, available to all.
Since the general pool dried up earlier this year, investors who missed the initial opportunity may have a second chance. Jeff Nelson from Minnesota’s Department of Employment and Economic Development, now estimates that $3m of the initial $7.5m carve-out will become available as of October 1.
“It’s always hard to tell because these things can change last minute,” Nelson says, acknowledging that there is still another week before it’s final, but a list is already forming for those seeking a pro-rated piece of any leftovers.
“Now would be the time to act on the application,” he concludes.