On April 1, Governor Pawlenty signed into law the Angel Investor Tax Credit, following its passage by the Minnesota House and Senate on March 29.  The bill supports investors of early stage, high-tech startups by providing $50 million in tax credits over five years.  This ends a seven-year debate brought on by concerns that Minnesota was not doing enough to encourage start-ups in the state, losing many companies to other states such as Wisconsin, where angel credits are already in place.

The bill marks a serious attempt to bring back the entrepreneurial spirit that has defined Minnesota for much of its history.   Strong bipartisan support for the bill (112-20 in the House and 58-3 in the Senate) shows that most view the financial crisis as a wake-up call—Minnesota can no longer afford to be complacent and miss out on innovation.  Even in the face of a $2 billion state deficit, Democrats and Republicans saw the need to act now.  Minnesota, though known as an innovator in medical devices, has seen limited growth in early stage capital.  This bill is a strong step in the right direction.

For detailed information, check out the MOJO Guide to the AITC.