The Minnesota Angel Tax Credit has an additional $5.1m in funds available as of tomorrow.
Minnesota’s Angel Tax Credit provides a 25-percent credit to investors or investment funds that put money into qualified startup companies; residents of other states and foreign countries are eligible.
Overall, $15.5m in credits was available for the entire year, with a reserve of $7.5m for minority and women owned businesses, as well as businesses located in Greater Minnesota. Since those funds have not been claimed, the remaining $5.1m is rolled over into the general pool available to all through the end of this year.
Program Manager Jeff Nelson says that applications for the remaining credits are already lining up with an estimated $1.2m of the $5.1m waiting. Come Monday, he estimates there will be $3.9M available for credit allocations available.
Minnesota’s Angel Investor Tax Credit will have re-distributed a combined ~$75m from Minnesota taxpayers to accredited investors by the end of this year since, since 2010 inception.
2017 will bring a reduction in program benefits as $10m was approved by the state legislature and 1/2 is for targeted businesses, meaning that only $5m will be available for most companies from January – September 2017. Also, MNvest equity crowdfunding exemptions for unaccredited Minnesota investors will be eligible for the program.