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.

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.

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.

To claim t​​his credit, complete Schedule M1REF, Refundable Credit. Include both the schedule and the credit certificate when you file your Minnesota income tax return. 

You may receive federal Form 1099-MISC if you claimed the Angel Investment Tax Credit.