The Minnesota Angel Tax Credit is a huge incentive for angel investors to invest in Minnesota startups. Under the Angel Tax Credit, investors can get a 25% refundable tax credit for investments of at least $10,000. There is over $12 million available for 2011 tax credits, and last year, Minnesota only paid out $2.5 million.
Taking advantage of the Minnesota Angel Tax Credit is a 4-step process:
- Your business gets certified
- The investor gets certified
- Both business and investor get the investment transaction approved
- The investment goes forward
If your tech startup is raising capital, the earlier you get certified for the Angel Tax Credit, the earlier you can start working with investors who want to take advantage of it.
For more on applying for Angel Tax Credit certification, see my post on Minnov8.
(photo: http://www.flickr.com/photos/samdogs/3147062577/)
