Tee Up to Receive 2014 Minnesota Angel Tax Credits

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Explore:  Tax Credits

The Minnesota Department of Employment and Economic Development (DEED) is now officially accepting applications for businesses and investors who hope to receive a portion of the $12 million in tax credits available in Minnesota beginning on January 1, 2014. 

The process is a multi-stage endeavor, but the ability to get started ahead of the new year definitely gives businesses and investors a leg up in ensuring they secure an allocation. At a high level, here are the requirements for qualification and submission that aspiring businesses can start working on now:  

Ensure your company meets the eligibility requirements for the program by working through this Business Certification Checklist.

If you believe your business qualifies, submit the 2014 Business Certification Application to DEED with the required fee. Your company will receive a certification approval email from DEED within 15 to 30 days confirming your qualification for the program, and your name will be posted on the DEED website’s list of qualified businesses. 

Ensure your investors meet the qualifying requirements by having them work through the Investor Certification Checklist

Have each investor submit the online Investor Certification Application and follow the instructions to sign the receipt and relay the required filing fee. Investors will receive their own certification approval email from DEED within 15 to 30 days confirming their qualification, and their names will be posted on the DEED website’s list of qualified investors. 

After both your company and potential investors are certified, jointly submit a 2014 Credit Allocation Application. This will get you in the queue for an allotment of the $12 million in credits, which DEED will begin to process come January. Once you receive approval of your allocation (DEED will send both parties an email), you’re ready to move forward with the investment transaction!

There are additional steps involved once a transaction is complete, but the above points are gate-keeping items and can help get you ahead of the game this year. As of now, 2014 is the last year scheduled for the program, so its popularity and demand will likely be at an all-time high. In fact, it’s not far-fetched to project that the $12 million allocation may dry up within the first quarter of the coming year. If you’re planning to raise money utilizing the Angel Tax Credit, it makes sense to start the process now. And, of course, Gray Plant Mooty is always happy to assist at any stage of the process! 

Topics:  Tax Credits

Published In: Finance & Banking Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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