Angel Investor Tax Credit Now Available in Minnesota!
4/1/2010
The House and Senate passed a package of tax cuts that legislators call the "jobs" bill -- with the help of Lommen Abdo's Brad Lehrman. And it was signed into law on April 1, 2010. This is great news for the entrepreneurial community and will help reignite Minnesota's culture of innovation.
The Angel Investor Tax Credit, discussed and debated for years at the Capitol, provides for a 25% tax credit for Angel Investment, to a maximum of $125,000 in tax credits per year/per investor. The bill budgets $11 million in credits for 2010, with $12 million in credits for 2011 through 2014. This tax credit is scheduled to sunset in 2015.
Lommen Abdo and Merchant & Gould -- in a rare law firm joint venture called "MOJO MN" -- worked closely with the authors of this bill and testified in favor of its passage.
The other major tax provisions in the bill include:
- Research and Development (R&D) tax credit,
- Historic Renovation tax credit,
- Voluntary energy efficiency financing program,
- "CAR-Z" program aimed at keeping the St. Paul Ford plant open, and
- Numerous tax increment financing provisions, including provisions to assist with an expansion of the Mall of America.
The R&D tax credit increases from 5% to 10% of the first $2.5 million in R&D investment. In addition, the R&D credit is now expanded beyond "C" corporations to partnerships and "S" corporations. The R&D tax credit is refundable if a business's tax liability is less than its credit due.
For more information on the Angel Investor Tax Credit:
If you have questions about the Angel Investor Tax Credit, contact
Brad Lehrman, co-founder of MOJO (MN), at 612-336-9317 or
blehrman@lommen.com.