Updated: 03/28/2013 6:43 AM KSTP.com By: Nick Winkler
The Angel Tax Credit program was started in Minnesota three years ago. It provides approximately $12 million in tax credits for angel investors who pour money into early stage start up companies.
However, the state ran out of credits early last year and has already awarded about half so far this year. It means the state could lose companies with promise to states with the capacity to offer investors more credits.
Now, lawmakers are considering offering additional credits in Minnesota and extending the program.
While the credits have not created a large number of jobs on a relative basis, investors say the credits will pay for themselves if just a sliver of the companies receiving angel money grow into successful companies.