Income Tax Incentives
Angel Fund Investment Credit
An individual, estate, trust, or corporation is allowed an income tax credit for investing in an angel fund. The angel fund must be incorporated in North Dakota and be in compliance with North Dakota’s securities laws.
The credit is equal to 45% of the investment, up to a maximum credit of $45,000 per year. An investment must be at risk in the angel fund for at least 3 years to be eligible for the credit. An unused credit in the year of investment may be carried forward up to 4 years. A taxpayer claiming this credit may not claim an income tax credit passed through to the taxpayer by the angel fund resulting from the angel fund’s investment in a qualified business for purposes of the seed capital or agricultural commodity processing facility investment tax credit programs.
