DEED's Angel Tax Credit Program has attracted millions of dollars in private investments for high-tech startups in Minnesota.

Since 2010, almost $248 million has been invested in more than 280 Minnesota-based startup businesses pursuant to the program; investors have been awarded more than $60 million credits. While most of the investors are Minnesotans, about 30 percent of investors and investment are from outside the state.

How does the program work? Watch a video about the program here.

Minnesota's Angel Tax Credit provides a 25-percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The maximum credit is $125,000 per person, per year ($250,000 if filing jointly). The credit is refundable. Residents of other states and foreign countries are eligible.

Available Funding

A total of $16 million in tax credits is available, divided into two parts:

• $7.5 million is reserved until Sept. 30 for investments in businesses owned by women or minorities or in businesses located in Greater Minnesota. As of 3/2/2015, $5.6 million remains. After Oct. 1, any remaining tax credits not allocated to these targeted businesses will be made available to others.
• Another $8.5 million in credits (including unused credits from 2014) is available for investments in other businesses. As of 3/2/2015, $4.9 million remains. Based on experience, we expect these credits to be allocated quickly.

Application period

We are currently accepting certification applications and credit allocation applications. We will do so until the credits are exhausted. 2014 Angel Tax Credit Certificates were mailed to investors on Jan. 5, 2015.

What's new this year

'Insiders' are no longer eligible for the credit. That includes officers, principals, 20-percent owners and family with ownership interests combined, and family of these insiders.