MPR's Bob Collins, reporting on the Angel investor tax credit being considered by the Minnesota Legislature, notes the bankruptcy of VitalMedix, a company that announced its intention last May to move to Wisconsin to take advantage of a supposedly more favorable investment climate. It moved in December.
Back in October, when a different firm announced plans to head across the St. Croix, we noted the dodginess of the tax subsidy game.
Meanwhile, another MPR story tells how the federal medical device excise tax will hit Minnesota disproportionately.
Is the grass really greener on the other side of the river? According to the report of the National Venture Capital Association [Download PDF], Minnesota invested $263 million in 23 companies in 2009, versus Wisconsin's $23 million in 9 companies.
This isn't to say encouraging venture capital investment in the state is bad. But legislators in both parties need to remember that tax breaks aren't the only thing investors consider when they lay their bucks down.
— Charlie Quimby