Amendment ASA2-SB463

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2011 - 2012 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 2, TO 2011 SENATE BILL 463

March 15, 2012 - Offered by Representatives Barca, Pasch, Mason, Molepske Jr and Seidel.

SB463-ASA2,1,10 An Act to repeal 71.07 (5d) (c) 1.; to amend 25.14 (1) (a) (intro.), 71.07 (5b) (d) 3., 71.07 (5d) (d) 1., 71.28 (5b) (d) 3., 71.47 (5b) (d) 3., 73.03 (63), 238.15 (1) (intro.), 238.15 (1) (h), 238.15 (1) (j), 238.15 (1) (km) and 238.15 (3) (d) (intro.); and to create 16.5195, 19.42 (10) (t), 19.42 (13) (p), 20.192 (1) (q), 25.90, 238.15 (1) (m), 238.155 and subchapter III of chapter 238 [precedes 238.40] of the statutes; relating to: grants to certified seed incubator funds, the angel investment and early stage seed investment tax credit programs, creation of a badger jobs fund to be administered by an investment committee appointed by and existing under the Wisconsin Economic Development Corporation, granting rule-making authority, and making appropriations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB463-ASA2, s. 1 Section 1. 16.5195 of the statutes is created to read:

SB463-ASA2,2,3 16.5195 Transfers to the badger jobs fund. (1) Beginning after June 30, 2013, at the beginning of each fiscal year, the secretary shall transfer $25,000,000 from the general fund to the badger jobs fund.

SB463-ASA2,2,4 (2) No moneys may be transferred under sub. (1) after June 30, 2016.

SB463-ASA2, s. 2 Section 2. 19.42 (10) (t) of the statutes is created to read:

SB463-ASA2,2,7 19.42 (10) (t) The members of the badger jobs fund investment committee appointed under s. 238.41.

SB463-ASA2, s. 3 Section 3. 19.42 (13) (p) of the statutes is created to read:

SB463-ASA2,2,10 19.42 (13) (p) The members of the badger jobs fund investment committee appointed under s. 238.41.

SB463-ASA2, s. 4 Section 4. 20.192 (1) (q) of the statutes is created to read:

SB463-ASA2,2,13 20.192 (1) (q) Badger jobs fund. From the badger jobs fund, all moneys received under s. 16.5195 for investments and grants under subch. III of ch. 238.

SB463-ASA2, s. 5 Section 5. 25.14 (1) (a) (intro.) of the statutes is amended to read:

SB463-ASA2,2,19 25.14 (1) (a) (intro.) There is created a state investment fund under the jurisdiction and management of the board to be operated as an investment trust for the purpose of managing the securities of all funds that are required by law to be invested in the state investment fund, the badger jobs fund, and all of the state's funds specified in s. 25.17 (1), except all of the following:

SB463-ASA2, s. 6 Section 6. 25.90 of the statutes is created to read:

SB463-ASA2,2,25 25.90 Badger jobs fund. There is established a separate nonlapsible trust fund designated as the badger jobs fund. The fund shall consist of all moneys deposited in the fund under s. 16.5195, together with all donations, gifts, or bequests made to the fund, all moneys transferred to the fund from other funds, and all income or interest earned by the fund.

SB463-ASA2, s. 7 Section 7. 71.07 (5b) (d) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,3,7 71.07 (5b) (d) 3. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA2, s. 8 Section 8. 71.07 (5d) (c) 1. of the statutes is repealed.

SB463-ASA2, s. 9 Section 9. 71.07 (5d) (d) 1. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,3,15 71.07 (5d) (d) 1. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA2, s. 10 Section 10. 71.28 (5b) (d) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,3,22 71.28 (5b) (d) 3. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA2, s. 11 Section 11. 71.47 (5b) (d) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,4,5 71.47 (5b) (d) 3. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA2, s. 12 Section 12. 73.03 (63) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,4,16 73.03 (63) Notwithstanding the amount limitations specified under s. 71.07 (5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats., in consultation with the department of commerce or the Wisconsin Economic Development Corporation, to carry forward to subsequent taxable years unclaimed credit amounts of the early stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1, the department of commerce or the Wisconsin Economic Development Corporation shall submit to the department of revenue its recommendations for the carry forward of credit amounts as provided under this subsection.

SB463-ASA2, s. 13 Section 13. 238.15 (1) (intro.) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,5,2 238.15 (1) Angel investment tax credits. (intro.) The corporation shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the corporation in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). A business may be certified under this subsection, and may maintain such certification, The corporation may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB463-ASA2, s. 14 Section 14. 238.15 (1) (h) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,5,6 238.15 (1) (h) It At the time it is initially certified under this subsection, it has less than 100 employees.

SB463-ASA2, s. 15 Section 15. 238.15 (1) (j) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,5,10 238.15 (1) (j) It At the time it is initially certified under this subsection, it has been in operation in this state for not more than 10 consecutive years.

SB463-ASA2, s. 16 Section 16. 238.15 (1) (km) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,5,15 238.15 (1) (km) It has not received aggregate private equity investment in cash of more than $10,000,000 prior to being before it is initially certified under this subsection.

SB463-ASA2, s. 17 Section 17. 238.15 (1) (m) of the statutes is created to read:

SB463-ASA2,5,23 238.15 (1) (m) 1. It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount determined under subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

SB463-ASA2,5,24 a. The business's employees.

SB463-ASA2,5,25 b. The business's total payroll.

SB463-ASA2,6,2 c. The activities of the business's headquarters, as determined by the corporation.

SB463-ASA2,6,3 2. The amount of a penalty payment under subd. 1. is any of the following:

SB463-ASA2,6,5 a. If the relocation occurs less than 12 months after the investment, 100 percent of the tax credit that was claimed under s. 71.07 (5d) as the result of the investment.

SB463-ASA2,6,8 b. If the relocation occurs 12 months or more after the investment but less than 24 months after the investment, 80 percent of the tax credit that was claimed under s. 71.07 (5d) as the result of the investment.

SB463-ASA2,6,11 c. If the relocation occurs occurs 24 months or more after the investment but less than 36 months after the investment, 60 percent of the tax credit that was claimed under s. 71.07 (5d) as the result of the investment.

SB463-ASA2, s. 18 Section 18. 238.15 (3) (d) (intro.) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA2,7,19 238.15 (3) (d) Rules. (intro.) The corporation, in consultation with the department of revenue, shall adopt rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $6,500,000 for calendar year 2010, and $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $8,000,000 for calendar year 2010, and $20,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, no a person may receive who receives a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), or 76.638 unless the person's must keep the investment is kept in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation, occurs during the 3-year period. The rules shall permit the corporation to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under s. 238.16 (1) (d), if all of the following apply:

SB463-ASA2, s. 19 Section 19. 238.155 of the statutes is created to read: