Angel tax credit helps new Minn. businesses
The Minnesota Angel Tax Credit Program has attracted more than $126 million in private investments for small and emerging companies in the state since the program was launched two years ago in July 2010.
In 2012 alone, over 100 businesses have received funding from over 314 investors and 15 angel funds, according to the Minnesota Department of Employment and Economic Development.
Businesses attracting the most funding are software, medical device and biotechnology firms.
"The Angel Tax Credit Program has been a tremendous help for promising businesses that need access to funding during the early stages of their development," said DEED Commissioner Mark Phillips. "Some of these businesses could become Minnesota's next high-tech success story, providing lucrative opportunities for the state's workforce and economy." Under the program, qualified investors can receive a tax credit of 25 percent on investments of at least $10,000 in emerging companies that specialize in high technology or new proprietary technology.
Businesses that receive angel funding must be headquartered in Minnesota and have fewer than 25 employees, with at least 51 percent of the workers and total payroll based in the state.