Minnesota Encourages Growth of Women- and Minority-Owned Businesses By Offering $15 Million in Tax Credits

Minnesota has the right idea when it comes to increasing the growth of businesses owned by women and minorities. Six years ago, they created the Angel Tax Credit Program, an incentive program that offers state tax credits of 25 percent to investors who invest in qualified businesses. The pot has now grown to $15 million for 2016 to support women- and minority-owned businesses.

Program brings great results

Since the program began six years ago, the results have been astounding. The program has attracted over $300 million for hundreds of high-tech startup companies and added hundreds of jobs to Minnesota's economy. So, the state has reserved $15 million in new credits for 2016, of which $7.5 million is reserved for investors funding minority- and women-owned businesses located in greater Minnesota.

Eligibility

Since it's beginning, the program has grown to include not only high-tech industries, but also businesses developing new products or services in the fields of agriculture, forestry, mining, tourism, manufacturing and transportation. Eligible small businesses must have fewer than 25 employees, in businesses no more than 10 years, and have at least 51 percent of their workers and total payroll based in the state of Minnesota.

According to The Department of Employment and Economic Development, the mission is to ensure "that all populations are well represented in the state's innovative environment."

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