Minnesota's Angel Tax Credit Program gave a boost last year to about 100 early stage medical device and other technology companies in the state.
The program gives investors a 25 percent state tax credit for money they put into Minnesota technology firms with fewer than 25 employees. Last year, investors put about $64 million into early stage tech firms and got $16 million in tax credits in return.
The state of Minnesota launched the program in 2010, hoping to spur job growth.
Minnesota Department of Employment and Economic Development spokesman Jeff Nelson said the tax credit initiative also put Minnesota on a level playing field with neighboring states that have similar programs.
"What we were finding is that small emerging businesses in Minnesota, in order to attract investment, often had to move to Wisconsin or Iowa or North Dakota," Nelson said.
Minnesota companies involved in the program have created about 160 jobs since the program started in mid-2010 at a cost of almost $141,000 per job in tax credits. But Nelson said they have the potential to create thousands of jobs.
"These are companies that are seeking capital so that they can grow and hopefully in the future become like the next 3M, the next Medtronic," Nelson said.
Nelson said it'll likely be many years before the companies create a large number of jobs.