Committee hears testimony urging renewal of Angel Investment Tax Credit to spur startup investment

Senate File 2879, proposing renewal and modification of Minnesota’s Angel Investment Tax Credit, received testimony from industry and entrepreneurs on April 1 and was laid over by the Senate Taxes Committee for further consideration.

Ben Wagner of Medical Alley described the credit as a vital tool for early-stage companies across Minnesota, citing job creation and follow-on investment tied to the program since its creation in 2010. "Funding this angel investment credit 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 told the committee.

Entrepreneurs who used the credit, including Morgan Evans (co‑founder and CEO of Agitated Solutions) and Amy Garza (founder and CEO of Coravii Medical), said the program helps transform hesitant individuals into investors and encourages additional capital contributions. Evans said the credit helped her company hire employees and spin out new ventures; Garza said her company raised about $3 million in equity and now employs Minnesotans who buy local services. Evans and Garza urged renewal to keep Minnesota competitive against coasts and other states with similar incentives.

Senator West, sponsor of the bill in committee, noted the bill would change the holding period to five years (from three) and include a $10 million annual cap; the revenue estimate reflects those design choices and a sunset provision in 2028. Committee members heard the testimony and laid the bill over for further review.