Angel Tax Credit Program fully distributed
Published 9:54 am Wednesday, November 25, 2015
$16 million in tax credits awarded to investors
ST. PAUL – The Minnesota Angel Tax Credit Program has fully distributed all $16 million in tax credits that were available to angel fund investors in 2015, according to the Minnesota Department of Employment and Economic Development.
In the 2015 program, 115 businesses certified received investments. Among those, 13 were minority-owned, 10 were women-owned, and 13 were headquartered in Greater Minnesota.
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In 2014, eight were minority-owned, 15 were women-owned, and eight were located in Greater Minnesota.
“The Angel Tax Credit Program is the state’s premier program to support entrepreneurs and spur investment in emerging Minnesota companies,” said DEED Commissioner Katie Clark Sieben. “Given the strong response to Minnesota’s Angel Tax Credit Program in the past, it is not surprising that the program is completely subscribed for 2015.”
DEED began accepting certification applications Nov. 1 for another $15 million in credits that will be available in 2016. Of the $15 million in new credits, $7.5 million is reserved for investments in minority-owned and managed businesses, women-owned and managed businesses and businesses located in Greater Minnesota.
Under the program, qualified investors receive a state tax credit of 25 percent for investing in qualified businesses. As every $1 in tax credits awarded to private investors generates $4 in investments for startup businesses, this translates into $60 million in investment in Minnesota startups.
Since it was launched in 2010, the program has attracted over $300 million for hundreds of high-tech startups in Minnesota, such as 75F and Vios Medical.
Located in Mankato, 75F raised $680,000 from the Angel Tax Credit Program in 2015. This minority-owned business, winner of the 2014 Minnesota Cup Award, uses wireless monitoring, computer controlled damper and proprietary software to reduce heating and cooling costs in small commercial buildings.
Vios Medical, a women-owned business in St. Paul, is developing a system for monitoring a patient’s vital signs using wireless technology. Vios Medical raised over $1.5 million using the program this year. For more details about the program, visit www.mn.gov/deed/angelcredit.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development.