An individual, estate, trust, or corporation is allowed an income tax credit for investing in a North Dakota-based angel fund.
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 three years to be eligible for the credit. An unused credit in the year of investment may be carried forward up to four 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.