Minnesota Angel Tax Credit

Minnesota Angel Tax Credit

Funds Minnesota angel investors through a refundable credit for investments in high-technology startups.

The Minnesota Angel Tax Credit, administered by the Minnesota Department of Employment and Economic Development (DEED), provides a 25% refundable state income tax credit to investors and investment funds that make qualifying equity investments in startup companies focused on high technology, new proprietary technology, or new proprietary products, processes, or services in specified technology fields. The credit is fully refundable — if the credit exceeds the investor's Minnesota tax liability, the state pays the excess as a cash refund. The maximum credit is $125,000 per person per year, or $250,000 for investors filing jointly. Notably, the credit is available to residents of other states and foreign countries, not only Minnesota residents.

The credit is claimed by the investor, not the startup company receiving the investment. DEED certifies whether a given investment qualifies; the Minnesota Department of Revenue then processes the credit claim. Eligible startup companies must operate in high-technology or proprietary-technology fields. To receive credit certificates for 2024 qualifying investments, DEED issued certificates to investors on February 19, 2025. The program exists in statute and the administrative infrastructure remains intact.

As of March 2026, the program has no appropriated funding for the 2026 calendar year, and the application period is closed. The Minnesota legislature has not authorized a 2026 funding allocation; the program is between cycles and could resume if the legislature reauthorizes funding. Investors seeking alternatives in the interim are directed by DEED to the Growth Loan Fund and other business financing programs. Interested parties should check mn.gov/deed or contact angel.credit@state.mn.us or 651-259-7599 for updates on potential 2027 reauthorization.