Minnesota’s Angel Investor Tax Credits (AITC) are finally gone for the year, according to Program Manager Jeff Nelson.
In 2016, $15.5 million in credits was available overall with half ($7.5m) in preferential treatment funds for minority-and women-owned businesses, as well as businesses located in Greater Minnesota.
$3.9m of that carve-out was not claimed and reverted back to the general pool at the end of September, since allocated.
Legalized in 2010, the AITC provides a 25% rebate for qualified investors in qualified companies. It has since redistributed $75 million dollars of taxpayer money into the hands of those who earn excess of $200k per year and/or own a million dollars or more in assets.
The program’s ROI came into question last year, and however subjective ROI is in such cases, the legislature voted to cut annual program funding down to $10m in 2017. Half of that is earmarked exclusively for preferential business types, again, so only $5m will be available for most Minnesota companies from January through September.
It’s also worth noting that the demand for such investment incentives seems to be cooling off, stricly looking at the timing here. In years past, the funds have moved much quicker and are usually gone around mid-way through the year.
DEED is currently accepting 2017 certification applications to be held and date stamped as being received 1/2/2017.