Now halfway through the year, one of Minnesota’s most popular tax credit programs holds over one-third of its $16 million pot still available. In past years, the Angel Tax Credit’s pot has emptied months before the end of the year. And last year, the pot was emptied by early March. The struggle to empty the pot can be tied to lawmakers imposing restrictions on those who can reap the benefits.
This year, lawmakers set aside $7.5 million for businesses owned by women or minorities, or businesses based in greater Minnesota. They also stopped early-investors from accessing the credits, which allowed them to regain a portion of their buy-in to a given company.
Out of the $6.1 million remaining credits in the pot, $4.4 million are from the pool reserved for the underserved groups. These qualifying businesses have until Sept. 30 to act on this benefit before it funnels back into the general fund. The general fund contains a remaining $1.7 million and businesses who qualify will have until the end of the year to benefit from it. Funds left over at the end of the year will not rollover into 2016.
To find out if you qualify for the Angel Tax Credit, please refer to the Minnesota DEED website.
If you have questions about how this credit can affect your business, please reach out to one of our tax professionals at 612.339.7811.