Senate File 2879 would continue and modify Minnesota’s Angel Investment Tax Credit program. Sponsors and business‑community witnesses told the committee the credit encourages early‑stage investment that helps Minnesota startups grow, create high‑quality jobs and attract follow‑on capital.

Ben Wagner of Medical Alley described the credit as “a vital tool” that has helped startups attract capital and cited example companies that have grown substantially after early support. Morgan Evans, co‑founder and CEO of Agitated Solutions, and Amy Garza, founder and CEO of Coravii Medical, said the credit helps convert hesitant investors and often motivates additional investor contributions. Garza said the program anchors companies in Minnesota and “gives us a fighting chance to attract investment that might otherwise go to places like Silicon Valley or Boston.”

Fiscal and program details discussed include a required five‑year holding period for eligible investments (up from three in some prior versions), an annual certification cap (testimony referenced a $10 million maximum per year in the revenue estimate) and a sunset provision in 2028. Committee members and the sponsor noted tensions with other tax incentives (such as R&D credits) but emphasized the program’s role in growing the state innovation economy.

Senate File 2879 was laid over for further consideration.