The angel credit is a huge tax credit in Minnesota.  The trouble is that there is a pool of money available for the credit every year and that pool needs to be refilled by the legislature each year.  Well for 2013, there is money in the pool again  –  about $12.7 million.  Once the money is gone for the year, it’s gone.  The Minnesota Department of Employment and Economic Development, which administers the credit, says $10.3 million remains as of February 7, 2013.

For the full breakdown on the credit and how to qualify, check out my previous posts.  The executive summary reads like this:  First the individual taxpayer needs to complete an application and be certified as a qualified investor.  Then the company needs to complete an application and prove they are a qualified company that is innovating, using technology in the state of Minnesota.  Then the investor and the company need to certify that the actual investment qualifies for the credit.  The applications all come with fees, but the payoff can be huge.  The tax credit is a refundable credit equal to 25% of the invested amount.

If you are thinking about being an angel investor, you should get working on it ASAP since when the money runs out, you have to wait until next year.