States are now starting to compete with the new Securities and Exchange Commission Crowdfunding regulations by passing laws and regulations that, for example, provide for a larger investment (up to $10,000), and, in Minnesota may soon provide a refundable tax credit.
According to the State: “Minnesota’s Angel Tax Credit provides a 25-percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. The maximum credit is $125,000 per person, per year ($250,000 if filing jointly). The credit is refundable.”
Which means that the State will cut you a check if you don’t owe MN income tax.