The tax credit would be one of the six priorities within the governor’s proposed “jobs creation” bill.
In his annual State of the State address, Governor Tim Pawlenty on Thursday urged the Minnesota Legislature to approve an angel investor tax credit.
In his speech, Pawlenty did not provide details about the angel investor tax credit, but he indicated that the tax credit would be one of the six priorities of his proposed “jobs creation” bill.
Angel investors are typically wealthy individuals who invest in startups and play a vital role in helping to finance those businesses.
Last year, Wisconsin tripled its angel investor tax credit. Since an angel tax credit became available in Wisconsin, the state has seen investment rise and even some Minnesota startups have relocated there in order to take advantage of the tax credit.
Pawlenty’s other proposed economic measures include:
• A 20 percent corporate sales tax reduction
• A 20 percent exclusion from taxation for small businesses
• A research and development tax credit
• A capital gains exclusion for qualified investments
• Incentives for investment in Minnesota small businesses
“These steps will encourage job growth and send a strong signal that Minnesota is moving in a more pro-growth, pro-jobs direction,” Pawlenty said in his speech.
Global companies Google, Apple, and Starbucks all that received angel investments early on as they were getting off the ground.
—Eric Kelsey
(ekelsey@tcbmag.com)