Governor Tim Walz announced his 2023-2024 budget proposal includes $20 million per biennium for the Angel Tax Credit program, as well as an additional $5 million per biennium for Launch MN — a statewide collaborative effort to accelerate the growth of startups in Minnesota. A new $150 million closing fund has also been proposed for economic development.
“This is a tremendous day for Minnesota,” Medical Alley President & CEO Roberta ‘Bobbie’ Dressen said. “This critical investment shows our state’s commitment to innovation through the support and expansion of Medical Alley’s world-class startup community, and will ensure the next generation of medical breakthroughs and technologies will be developed right here in Minnesota. This program will help save lives.”
Medical Alley led the coalition that developed and passed the Angel Tax Credit program in 2010. Nearly $500 million has been raised since it passed, with more than 50% benefiting the state’s leading healthcare innovation community.
Minnesota’s Angel Tax Credit provides a 25% state income tax credit to individuals or investment funds which invest in qualified early-stage businesses. Last year, $5 million in credits were available, which ran out in May 2022. Medical Alley has worked for more than a decade to include permanent funding for Angel Tax Credit to the state’s budget.
Medical Alley has also supported Launch MN from its inception. Medical Alley Board Chair Jodi Hubler has been instrumental in the program’s direction, serving on Launch MN’s Advisory Board.
“This investment is a major step forward,” Hubler said. “These resources for Angel Tax Credit and Launch MN will help better connect and empower Medical Alley’s entrepreneurs, investors and ecosystem partners to attract more talent and elevate our reputation as the epicenter for health innovation and care.”
Inclusion of this funding in the Governor’s proposed budget is a great vote of confidence in this program. The Angel Tax Credit and Launch MN have consistently had bipartisan support and Medical Alley looks forward to engaging with members of the House and Senate in their work to make this proposal a reality.
About Medical Alley Association: Founded in 1984, Medical Alley Association (MAA) represents one of the most diverse and influential healthcare communities in the world. Our members span the full continuum of care – from payers to providers to digital health, biotech, medical device and everything in between. Our vision is to elevate the Medical Alley region as the epicenter of health innovation and care.
Source: Medical Alley Press Release