MHTA-Minnesota’s relatively new Angel Tax Credit program raised more than $63 million last year. It provided funding for 113 startup companies. The figures are part of an annual summary released by the State of Minnesota.
The Angel program began in the summer of 2010 and raised $28 million in funding for 67 businesses that year. Officials say the growth reflects the success of the program.
Minnesota’s Angel Tax Credit provides incentives to investors or investment funds that put money into startup and emerging companies focused on high technology or new proprietary technology. The Angel Tax Credit:
- Provides a 25-percent individual income tax credit for qualified investors
- Is refundable. Non-Minnesota residents, including residents of foreign countries, are eligible for the credit
- Allows a maximum credit of $125,000 per year per individual
- Allows a maximum credit of $250,000 for those married and filing jointly
There are currently more than $10 million in available credits for 2012. The program actually ran out of money last year when it had $16 million in credits. Supporters point to that statistic as they push for additional funding. In its recently adopted legislative agenda, MHTA called for additional program funding beyond the $12 million allocated for each of the next three years. In addition to helping startup companies become established, the Angel Tax Credit is also aimed at growing jobs. Past reports indicate it helped create 47 jobs in 2010. The 2011 job creation figures will be released later this spring.