This bill creates an income tax credit for an amount equal to 15 percent of the
investment a person makes in a minority business or woman-owned business. The
maximum amount that a person may invest and use as the basis for a credit is
$500,000 for each investment made directly in the business. The maximum amount
of the credits that may be claimed for all claimants and all taxable years is
$20,000,000.
Under the bill, the Department of Commerce certifies a person who is eligible
for the tax credit, and certifies the amount of the credit for which the person is
eligible. A person is eligible for certification only if the person will make an
investment in a business engaged in manufacturing, financial services, business
services, consumer products and services, media, entertainment, or technology.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB983, s. 1
1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB983,2,62 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b), and (5d), and (5e)
4and not passed through by a partnership, limited liability company, or tax-option
5corporation that has added that amount to the partnership's, company's, or
6tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB983, s. 2 7Section 2. 71.07 (5e) of the statutes is created to read:
AB983,2,98 71.07 (5e) Emerging target investment credit. (a) Definitions. In this
9subsection:
AB983,2,1210 1. "Emerging target investment" means a purchase of an equity interest, or any
11other expenditure, as determined by rule under s. 560.22, that is made by any of the
12following:
AB983,2,1413 a. An individual who reviews new businesses or proposed new businesses for
14potential investment of the individual's money.
AB983,2,1515 b. A network of individuals who satisfy subd. 1.
AB983,2,1616 2. "Claimant" means an individual who files a claim under this subsection.
AB983,2,1717 3. "Minority business" means a business that is certified under s. 560.036.
AB983,2,2118 4. "Woman-owned business" means a sole proprietorship, partnership, limited
19liability company, joint venture, or corporation that is at least 51 percent owned,
20controlled, and actively managed by a woman, as determined by the department of
21commerce.
AB983,3,222 (b) Filing claims. Subject to the limitations provided in this subsection and in
23s. 560.22, a claimant may claim as a credit against the tax imposed under s. 71.02
24or 71.08, up to the amount of those taxes, an amount equal to 15 percent of the

1claimant's emerging target investment made directly in a minority business or
2woman-owned business in the taxable year.
AB983,3,43 (c) Limitations. 1. The maximum amount of the credits that may be claimed
4under this subsection for all taxable years combined is $20,000,000.
AB983,3,75 2. The maximum amount of a claimant's investment that may be used as the
6basis for a credit under this subsection is $500,000 for each investment made directly
7in a business certified under s. 560.22.
AB983,3,178 3. For a claimant who is a nonresident or part-year resident of this state and
9who is a single person or a married person filing a separate return, multiply the
10credit for which the claimant is eligible under par. (b) by a fraction, the numerator
11of which is the individual's Wisconsin adjusted gross income and the denominator of
12which is the individual's federal adjusted gross income. If a claimant is married and
13files a joint return, and if the claimant or the claimant's spouse, or both, are
14nonresidents or part-year residents of this state, multiply the credit for which the
15claimant is eligible under par. (b) by a fraction, the numerator of which is the couple's
16joint Wisconsin adjusted gross income and the denominator of which is the couple's
17joint federal adjusted gross income.
AB983,3,2118 (d) Administration. 1. If an investment for which a claimant claims a credit
19under par. (b) is held by the claimant for less than one year, the claimant shall pay
20to the department, in the manner prescribed by the department, the amount of the
21credit that the claimant received related to the investment.
AB983,3,2322 2. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies
23to the credit under this subsection.
AB983,3,2524 3. Subsection (9e) (d), to the extent that it applies to the credit under that
25subsection, applies to the credit under this subsection.
AB983, s. 3
1Section 3. 71.08 (1) (intro.) of the statutes, as affected by 2005 Wisconsin Act
225
, is amended to read:
AB983,4,113 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
4couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
5ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3n), (3s),
6(3t), (5b), (5d), (5e), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds),
7(1dx), (1fd), (2m), (3), (3n), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds),
8(1dx), (1fd), (2m), (3), (3n), and (3t) and subchs. VIII and IX and payments to other
9states under s. 71.07 (7), is less than the tax under this section, there is imposed on
10that natural person, married couple filing jointly, trust, or estate, instead of the tax
11under s. 71.02, an alternative minimum tax computed as follows:
AB983, s. 4 12Section 4. 71.10 (4) (gxx) of the statutes is created to read:
AB983,4,1313 71.10 (4) (gxx) Emerging target investment credit under s. 71.07 (5e).
AB983, s. 5 14Section 5. 560.22 of the statutes is created to read:
AB983,4,19 15560.22 Emerging target investment program. (1) (a) The department
16shall implement a program to certify persons as eligible for tax credits under s. 71.07
17(5e). The department may certify a person under this subsection only if the person
18will make an emerging target investment, as defined in s. 71.07 (5e) (a) 1., in a
19business engaged in any of the following:
AB983,4,2020 1. Manufacturing.
AB983,4,2121 2. Financial services.
AB983,4,2222 3. Business services.
AB983,4,2323 4. Consumer products and services.
AB983,4,2424 5. Media.
AB983,4,2525 6. Entertainment.
AB983,5,1
17. Technology.
AB983,5,42 (b) If the department certifies a person as eligible for tax credits under par. (a),
3the department shall also certify the amount of the emerging target investment
4made by the person.
AB983,5,65 (c) Certifications under par. (a) shall be valid only for the tax year in which
6application is made.
AB983,5,10 7(2) The department shall notify the department of revenue of certifications
8under sub. (1) and shall make available to the public on the Internet a list of the
9persons certified and the amount of the emerging target investment made by each
10person certified.
AB983,5,11 11(3) The department shall promulgate rules to administer this section.
AB983, s. 6 12Section 6. Initial applicability.
AB983,5,1313 (1) This act first applies to taxable years beginning on January 1, 2006.
AB983,5,1414 (End)
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