Angel Investor Tax Credit would provide incentive for investments

Legislation supported by state Rep. John Ward, DFL-Brainerd, that has the potential to create thousands of Minnesota jobs annually was heard last week in a joint hearing of the House Taxes Committee and the House Bioscience and Workforce Development Division.

The legislation, known as the Angel Investor Tax Credit, would provide an incentive for investments in high tech businesses, and also includes a mentoring component that could benefit startup businesses.

The legislation would provide a credit equal to 25 percent of the taxpayer's investment in a qualified business, with a maximum credit of $125,000. Qualifying companies would need to be high-tech with proprietary technology based in Minnesota, have been in operation for fewer than 10 years, have fewer than 25 employees and have not received equity investments of more than $2 million.

Ward said several business owners who testified before the committees said they believe the Angel Credit could help them grow their businesses more easily.