According to Finance & Commerce, there are tax credits waiting to be had in Minnesota…
Halfway through the year, the Angel Tax Credit program has more than one-third of its $16 million pot available. Last year, the Minnesota Department of Employment and Economic Development dispersed its entire $12 million pool by early March before businesses drained an extra $3 million in a single day.
The shift follows state legislative tweaks that keep insiders from accessing the credits, which allow early-stage investors to recoup a portion of their buy-in to a given company. Also this year, lawmakers set aside $7.5 million for businesses owned by women or minorities, or based in greater Minnesota.
As of last week, most of the $6.1 million in remaining credits – $4.4 million – were in the first-of-its-kind pool for underserved groups, historically shut out from the program. Qualifying businesses have until Sept. 30 to capture that value before it funnels back into the main allocation.
An outreach campaign that stretched from the end of last year into the spring, including advertisements in publications geared toward targeted groups, hasn’t paid off. Over the past three months or so, DEED has only distributed about $500,000 from the specialized pool, according to agency figures.
As of last week, the general allocation contained just $1.7 million of the $8.5 million it had to start – a figure that’s dropping by about $100,000 a week as applications roll in and get approved, said Jeff Nelson, who manages the program for DEED.