Tax credits proposed to spur business investments in Minnesota
Thursday, March 21, 2019
Gov. Tim Walz, legislators want to reinstate the angel tax credit program.
State lawmakers and Gov. Tim Walz want to replenish funding for a lapsed program that gave tens of millions in tax breaks to investors who helped start businesses in Minnesota.
The state could spend up to $20 million a year on investors who support startups, under a proposal in the Legislature. Walz did not commit to an exact amount but told members of the TwinWest Chamber of Commerce that the tax credits will be part of the budget.
The angel investment program previously operated from 2010 through 2017, and the state doled out about $101 million in tax breaks over the years. The 431 business owners who qualified for the credit during that time used it to entice people to invest in their companies and netted a total of $422 million in investments.
Businesses that participated created 1,533 jobs, according to the tax credit program’s most recent annual report.