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Committee considers renewing and expanding angel investment tax credit to spur startups
Summary
Vice Chair Norris's House File 2,723 would renew and increase Minnesota's Angel Investment Tax Credit, raising the annual cap and investment cap and extending the program to grow the startup economy; business groups testified in support and the committee laid the bill over.
The House Taxes Committee on April 2 heard House File 2,723, authored by Vice Chair Norris, seeking to renew and expand Minnesota's Angel Investment Tax Credit to attract early-stage capital for startups and to promote investment in Greater Minnesota and among underrepresented founders.
Vice Chair Norris described the bill as a tool to cultivate the next generation of Minnesota businesses. "The angel tax credit is an important tool for fostering entrepreneurship in our state," Norris said, and proposed raising the annual available credit to $10 million per year for four tax years and increasing the per-company investment cap from $4 million to $15 million.
Ben Wagner of Medical Alley testified in support and cited examples of companies that used the credit and later raised substantial follow-on rounds or partnered with major medical firms. "Funding the angel investment credit really is one of the most effective targeted ways that we can strengthen Minnesota's innovation economy and spark job creation for decades to come," Wagner said.
Committee members asked clarifying questions and there was no public opposition in the hearing. The bill was laid over for possible inclusion in the 2025 taxes omnibus bill.
Ending
Supporters urged continuation and expansion of the credit to keep startups and investor dollars in Minnesota. The committee laid the bill over for further consideration.
