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Last Updated: 12/28/2016

Angel Investment Tax Credit

What is the Angel Investment Credit?   

The Angel Investment Credit was extended through tax year 2016.
The Angel Investment Credit is a refundable income tax credit meant to encourage investment in small businesses located primarily in Minnesota and in certain industries.  The credit allows qualified taxpayers to claim a refund even if you don’t owe tax. The credit is equal to 25 percent of any new investment in a qualified business up to a maximum credit of $125,000 for individuals and $250,000 for couples filing jointly.
To qualify for the credit, investors must be certified by the Minnesota Department of Employment and Economic Development (DEED) before making their investment. Once certified, you’ll receive an Angel Investment Tax Credit Certificate.
Starting in tax year 2015, $7.5 million of the credits are reserved for investors who invest in qualifying businesses that are minority-owned, women-owned, or operated in greater Minnesota.
To claim the credit on your Minnesota tax return:
For more information about this credit, eligibility and certification requirements, see Angel Tax Credit on the DEED website.