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posted by: Lauren Altschuler
Jun 27, 2019 5:50:00 AM
~$10 million available in 2019; with an additional $10 million available in 2021~
ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) will begin accepting applications from businesses, investors and funds to participate in the Minnesota Angel Tax Credit program on Monday, July 1.
The Minnesota Legislature authorized $10 million in tax credits for 2019, with another $10 million in 2021. Half of the funding each year is reserved for minority, women and veteran owned and managed businesses, as well as businesses located in Greater Minnesota.
“The Angel Tax Credit is an essential investment in Minnesota’s economy and our future,” said Governor Tim Walz. “Our state has a long history of innovation. By directing capital to the small businesses and startups that can use it best, we are creating the next generation of successful innovators based right here in Minnesota.”
“These tax credits are an excellent opportunity for Minnesota businesses to raise the capital the need to grow,” said DEED Commissioner Steve Grove. “When we invest in startups and small businesses we grow employment, we grow our economy and we lay the groundwork for a future in which Minnesota is a national leader in the innovation sector.”
The Angel Tax Credit program is now part of Launch Minnesota, a new initiative to grow Minnesota’s startup ecosystem. The Angel Tax Credit program provides a 25 percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The Angel Tax Credit stimulates private investments in emerging Minnesota businesses to encourage job creation.
Commissioner Steve Grove will host a Facebook Live event on Thursday, June 27, at 2 p.m., to discuss the Angel Tax Credit program further and to answer questions from prospective businesses, investors and funds. More details are at facebook.com/mndeed.
Since its inception in 2010, the Angel Tax Credit has provided $418 million in investment to 430 start-up businesses. The program ended in December 2017 due to its sunset provision before being reinstated earlier this year.
The minimum qualifying investment is $10,000 for non-targeted businesses. The minimum qualifying investment for women/minority/veteran and Greater Minnesota businesses is $7,500.
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 visit the DEED website or follow DEED on Twitter.
Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.