Posted at 12:46 PM on August 3, 2010
by Paul Tosto
Filed under: Jobs & unemployment
Here's my bias when it comes to Minnesota's new Angel Tax Credit: Minnesota's already a better state for business than many realize. And I'm skeptical of any efforts to use tax policy to keep or attract businesses.
That said, I wanted some perspective on the new credit from a potential investor. Tim Huebsch fills that bill.
Huebsch is among the first seven folks certified as eligible to receive the angel tax credit for a qualified investment.
"You look back at some of the really successful companies we've seen come through the Twin Cities, each one started out as a small start-up," he said. "If we can spur additional ones ... that's really building the next generation of companies."
Supporting those new-idea companies is important, he added, "especially in an economy now where it's awfully hard to get lending through traditional financial institutions....it's bringing us in line with what Wisconsin has done. It will spur some interest and discussion in the field of high tech.
The credit provides financial breaks to individual investors or funds that invest in high tech start-ups or young companies -- up to $125,000 per year per individual investor.
State officials approved $11 million for tax credits for 2010 and $12 million for each year for 2011 to 2014.
So far 15 businesses have been certified as potential credit recipients
(I'd love to know more about these businesses and their plans, by the way. Drop me a line if you can add an insight.)
For me, one of the key questions is it worth the money? How do you judge that? Jobs?
Return on investment is obviously an important goal for an investor. But Huebsch also views it as a way to test a concept, a pilot program to see if the incentive works.
I'm encouraged by the fact that we're trying something and doing it at a responsible level."
What's your take on the Angel Tax Credit? Post something below or drop us a line and keep the conversation going.