Open for business: The Minnesota Angel Tax Credit Program is now accepting certification applications online for 2016.

Of the $15 million in new credits available in 2016, $7.5 million is reserved for investors or investment groups funding minority-owned and managed businesses, women-owned and managed businesses and businesses located in Greater Minnesota.

Half of the $60 million in investments the program hopes to attract in 2016 is reserved for those businesses. Any leftover tax credits not tapped for investments in those businesses by the September 30, 2016 deadline will be available for investments in businesses outside those groups.

The Angel Tax Credit Program has attracted over $300 million for hundreds of high-tech startups in Minnesota since 2010. The program was created to provide an incentive for making equity capital investments in high-tech startups – software, medical device and biotechnology businesses – businesses needing cash but considered too risky for conventional bank loans. The program goes beyond high tech: Businesses developing new proprietary products or services in agriculture, tourism, forestry, mining, manufacturing, or transportation are also eligible to participate.

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.

Businesses that receive angel funding must be headquartered in Minnesota and certified to participate in the program. They must have fewer than 25 employees, with at least 51 percent of the workers and total payroll based in the state. They also must have been operating for no more than 10 years and cannot have received previous equity investments exceeding $4 million.

For more details, go to mn.gov/deed/angelcredit.