The Minnesota Angel Tax Credit Program has attracted more than $126 million in private investments for small and emerging companies in the state since the program was launched two years ago in July 2010.
In 2012 alone, more than 100 businesses have received funding from more than 314 investors and 15 angel funds, according to the Minnesota Department of Employment and Economic Development (DEED). Businesses attracting the most funding are software, medical device and biotechnology firms.
“The Angel Tax Credit Program has been a tremendous help for promising businesses that need access to funding during the early stages of their development,” said DEED Commissioner Mark Phillips in a news release. “Some of these businesses could become Minnesota’s next high-tech success story, providing lucrative opportunities for the state’s workforce and economy.”
Through the program, qualified investors can receive a tax credit of 25 percent on investments of at least $10,000 in emerging companies that specialize in high technology or new proprietary technology.
Businesses that receive angel funding must be headquartered in Minnesota and have fewer than 25 employees, with at least 51 percent of the workers and total payroll based in the state. Businesses must have been operating for no more than 10 years and cannot have received previous equity investments exceeding $4 million.
More than two-thirds of the $12 million in tax credits available for the program this calendar year already have been allocated. DEED expects the remaining credits of about $3.3 million to be gone by the end of the summer. The Angel Tax Credit Program is authorized to operate through the end of 2014. By that time, if fully subscribed as expected, close to $236 million will have been invested in Minnesota high-tech start-up businesses.
Currently, more than 170 businesses are certified to participate in the program.
Investors and businesses may begin the application process for program participation at www.PositivelyMinnesota.com/angelcredit. Other details about the program are available from Jeff Nelson at (651) 259-7523 or Angel.Credit@state.mn.us.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, go to www.PositivelyMinnesota.com.
