Minnesota Angel Tax Credit Program

The Minnesota Angel Tax Credit Program helps emerging businesses raise the equity capital they need to grow and prosper. Changes in the program, starting in January 2015, have been especially beneficial to businesses that are women-owned or minority-owned or to businesses located in Greater Minnesota. We want to ensure businesses in these categories that are seeking outside equity investment are aware of this opportunity.

The Angel Tax Credit Program provides a 25% credit to investors or investment funds that invest in qualified start-up businesses. The credit makes it easier to businesses to attract investors: since 2010, the program has enabled businesses to raise over $377 million in investment. To encourage more diversity of investment, the 2017 program reserves 50% of the credits for investments in businesses owned by women or minorities or headquartered outside the seven-county Twin Cities area. In 2014 and 2015, all the angel tax credits were used quickly; this change gives these businesses a better chance to make use of the program.

When the Angel Tax Credit Program was created, its focus was to provide an incentive for making equity capital investments in high-tech startups – software, medical device and biotechnology businesses. But starting in 2015, the program expanded beyond high-tech to include businesses developing new proprietary products or services in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation.

For complete information about the Minnesota Angel Tax Credit Program, including other business eligibility qualifications, please visit our website. We would be pleased to answer any questions you may have; email us at angel.credit@state.mn.us or call our angel hotline at 651.259.7599.