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State Representative Tim Mahoney
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4277
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Press/News Releases
HOUSE PASSES ANGEL INVESTMENT TAX CREDIT
The Minnesota House today passed an Angel Investment tax credit that could annually create as many as 6,300 jobs statewide and add $13 million in annual tax revenue. The tax credit is one piece of a jobs bill crafted by lawmakers that will spur job creation and diverse economic growth.
“Minnesota entrepreneurs looking to develop high-tech products are struggling to find investors," said Rep. Tim Mahoney (DLF-St. Paul), co-author of the tax credit. “This tax credit will provide an incentive to individual investors and allow those entrepreneurs to get the capital they need. In turn, those entrepreneurs will be able to grow their businesses and hire Minnesotans.”
The Angel Investment Tax Credit would give investors a 25 percent tax credit on their investment in Minnesota companies with less than 25 employees. The companies will have to be engaged in green industries, in researching, developing or using proprietary technology to add value in the fields of high technology, tourism, forestry, mining or transportation. The maximum credit per investor is $125,000.
The state will fund up to $12 million annually for the credits until 2014. According to the Minnesota Department of Employment and Economic Development, as many as 6,300 jobs could be created annually as a result of the investment. Those jobs pay between $43,000 and $55,000 annually.
“Job creation is the number one priority in Minnesota,” Mahoney said. “This tax credit invests in green industries and high-tech products – the fields that will put people to work now and in decades to come.”
The state invests millions into labs and science buildings at Minnesota colleges and universities for research, but if those ideas cannot be commercialized here the jobs will go elsewhere. Mahoney said Minnesota is losing startup companies to the 29 other states that offer an Angel Investment tax credit.
The Angel Investment tax credit is one part of a jobs bill that is the result of a House Jobs Task Force that spent months researching ways to promote job growth in Minnesota.
The provisions in the bill are targeted to the immediate challenges facing Minnesota. In addition to the Angel Investment Tax Credit, the jobs bill also includes an Historic Rehabilitation Tax Credit; an expansion of the Research and Development Tax Credit; additional flexibility in the use of Tax Increment Financing (TIF) for “shovel ready” projects; establishment of a CARZ zone at the Ford Motor Plant to preserve thousands of jobs; and provisions to allow for the expansion of the Mall of America. The bill could create as many as 12,000 jobs statewide.
The total price tag is $30 million each year. It will be funded by repealing the low-income motor fuels credit. Minnesotans who qualified received a $12.50 per year tax credit. Minnesotans could first apply for the credit this year.
“While I would prefer a different source of funding for these job creating provisions, this jobs bill will significantly boost employment across the state in a broad spectrum of industries,” Mahoney said. “This bill is a critical component in our efforts to put Minnesotans back to work.”
News Items
- DFL Legislators Introduce the “Contraceptive Equity Act” - (Posted: 2012-03-07 00:00:00)
- DFL Jobs Initiatives to be Heard in House Jobs and Economic Development Committee - (Posted: 2012-02-29 00:00:00)
- REP. MAHONEY, DFL LEGISLATORS BUILD ON DFL JOBS PLAN WITH NEW INITIATIVES - (Posted: 2012-02-01 00:00:00)
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