LRB-3281/1
JK&CTS:jld:pg
2007 - 2008 LEGISLATURE
October 30, 2007 - Introduced by Representatives Strachota, Jeskewitz, Fields,
Kerkman, Gunderson, LeMahieu, Shilling, Van Roy, Sheridan, Tauchen,
Smith, Pridemore, Vos, Zipperer
and Albers, cosponsored by Senators
Kanavas, Darling, Kedzie, Roessler, Sullivan, Olsen, Leibham and Kapanke.
Referred to Committee on Jobs and The Economy.
AB557,1,3 1An Act to amend 71.07 (5b) (c) 1., 71.07 (5d) (c) 1., 71.28 (5b) (c) 1., 71.47 (5b)
2(c) 1. and 560.205 (3) (d) of the statutes; relating to: increasing the amount of
3the early stage seed and angel investment credits.
Analysis by the Legislative Reference Bureau
Under current law, a person may claim an early stage seed investment income
and franchise tax credit in an amount equal to 25 percent of the person's initial
investment paid to a fund manager that the fund manager invests in a business that
is certified by the Department of Commerce (Commerce) to receive such investments.
The total amount of all credits that may be claimed in any calendar year is $3,500,000
and the total amount that may be claimed in all taxable years is $35,000,000. Under
this bill, the total amount of all early stage seed investment credits that may be
claimed in any calendar year is $10,225,000 and the total amount that may be
claimed in all taxable years is $102,250,000.
Under current law, an individual may claim an income tax credit in each
taxable year for two years, beginning with the taxable year certified by Commerce,
in an amount equal to 12.5 percent of the individual's bona fide angel investment in
a new business venture. The total amount of all credits that may be claimed in any
calendar year is $3,000,000 and the total amount that may be claimed in all taxable
years is $30,000,000. Under this bill, the total amount of all bona fide angel
investment credits that may be claimed in any calendar year is $8,775,000 and the
total amount that may be claimed in all taxable years is $87,750,000.

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:
AB557, s. 1 1Section 1. 71.07 (5b) (c) 1. of the statutes is amended to read:
AB557,2,42 71.07 (5b) (c) 1. The maximum amount of the credits that may be claimed under
3this subsection and ss. 71.28 (5b) and 71.47 (5b) for all taxable years combined is
4$35,000,000 $102,250,000.
AB557, s. 2 5Section 2. 71.07 (5d) (c) 1. of the statutes is amended to read:
AB557,2,76 71.07 (5d) (c) 1. The maximum amount of the credits that may be claimed under
7this subsection for all taxable years combined is $30,000,000 $87,750,000.
AB557, s. 3 8Section 3. 71.28 (5b) (c) 1. of the statutes is amended to read:
AB557,2,119 71.28 (5b) (c) 1. The maximum amount of the credits that may be claimed under
10this subsection and ss. 71.07 (5b) and 71.47 (5b) for all taxable years combined is
11$35,000,000 $102,250,000.
AB557, s. 4 12Section 4. 71.47 (5b) (c) 1. of the statutes is amended to read:
AB557,2,1513 71.47 (5b) (c) 1. The maximum amount of the credits that may be claimed under
14this subsection and ss. 71.07 (5b) and 71.28 (5b) for all taxable years combined is
15$35,000,000 $102,250,000.
AB557, s. 5 16Section 5. 560.205 (3) (d) of the statutes is amended to read:
AB557,3,517 560.205 (3) (d) Rules. The department of commerce, in consultation with the
18department of revenue, shall promulgate rules to administer this section. The rules
19shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
20The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may
21be claimed for investments in businesses certified under sub. (1) at $3,000,000

1$8,775,000 per calendar year for calendar years beginning after December 31, 2004.
2The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b),
371.28 (5b), and 71.47 (5b) that may be claimed for investments paid to fund managers
4certified under sub. (2) at $3,500,000 $10,225,000 per calendar year for calendar
5years beginning after December 31, 2004.
AB557, s. 6 6Section 6. Initial applicability.
AB557,3,107 (1) This act first applies to taxable years beginning on January 1 of the year
8in which this subsection takes effect, except that if this subsection takes effect after
9July 31 this act first applies to taxable years beginning on January 1 of the year
10following the year in which this subsection takes effect.
AB557,3,1111 (End)
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