Angel Investment Tax Credit

The Angel Investment Tax Credit is a refundable income tax credit meant to encourage investment in small businesses located primarily in Minnesota and in certain industries. You may claim this credit even if you do not owe Minnesota tax.

The credit is 25% of any new investment in a qualified business, up to $125,000 for individuals and $250,000 for couples filing jointly.

Note: This credit is not available for tax years 2020 and 2018.

Who Qualifies

You may qualify if you are certified by the Minnesota Department of Employment and Economic Development (DEED) before making your investment. Once certified, you’ll receive an Angel Investment Tax Credit Certificate.

For eligibility and certification requirements, see Angel Tax Credit on the DEED website.

Claim the Credit

Complete the appropriate schedule:

• For Tax Year 2021: Schedule M1REF, Refundable Credits
• For Tax Year 2019: Schedule M1REF, Refundable Credits
• For Tax Years 2016 and 2017: Schedule M1B, Business and Investment Credits

Include both the schedule and the credit certificate when you file your Minnesota income tax return.