The Minnesota Angel Tax Credit Program has allocated all $12 million in tax credits that were available to angel fund investors in 2012, according to the Minnesota Department of Employment of Economic Development (DEED).
The agency said the credits ran out earlier than expected because of the strong response to the program, which encourages investments in promising startup businesses in Minnesota.
DEED will begin accepting applications in November for another $12 million in credits that will be available in 2013. The program is set to expire at the end of 2014.
Under the program, qualified investors can receive a tax credit of 25 percent on investments of at least $10,000 in emerging Minnesota companies that specialize in high technology or new proprietary technology.
Since it was launched in July 2010, the program has attracted $140 million in private investments for small and emerging companies, particularly software, medical device and biotechnology firms. More than 180 Minnesota businesses are certified to participate in the program.
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 our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.