AB338,4,149 71.07 (5b) (d) 4. For taxable years beginning after December 31, 2012, if the
10allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
1171.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified
12by the department of revenue to the department of administration for payment by
13check, share draft, or other draft drawn from the appropriation account under s.
1420.835 (2) (ba).
AB338,9 15Section 9. 71.07 (5d) (a) 1. (intro.) of the statutes is amended to read:
AB338,4,1816 71.07 (5d) (a) 1. (intro.) "Bona fide angel investment" means a purchase of an
17equity interest, or any other expenditure, as determined by rule under s. 238.15 or
18s. 560.205, 2009 stats.
16.296, that is made by any of the following:
AB338,10 19Section 10. 71.07 (5d) (a) 2m. of the statutes is amended to read:
AB338,4,2320 71.07 (5d) (a) 2m. "Person" means a partnership or limited liability company
21that is a nonoperating entity, as determined by the department of commerce or the
22Wisconsin Economic Development Corporation
administration, a natural person, or
23fiduciary.
AB338,11 24Section 11. 71.07 (5d) (a) 3. of the statutes is amended to read:
AB338,5,2
171.07 (5d) (a) 3. "Qualified new business venture" means a business that is
2certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats. 16.296 (1).
AB338,12 3Section 12. 71.07 (5d) (b) (intro.) of the statutes is amended to read:
AB338,5,74 71.07 (5d) (b) (intro.) Filing claims. Subject to the limitations provided in this
5subsection and in s. 238.15 or s. 560.205, 2009 stats. 16.296, a claimant may claim
6as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of those
7taxes, the following:
AB338,13 8Section 13. 71.07 (5d) (b) 2. of the statutes is amended to read:
AB338,5,139 71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, and
10before January 1, 2013,
for the taxable year certified by the department of commerce
11or the Wisconsin Economic Development Corporation, an amount equal to 25 percent
12of the claimant's bona fide angel investment made directly in a qualified new
13business venture.
AB338,14 14Section 14. 71.07 (5d) (b) 3. of the statutes is created to read:
AB338,5,1815 71.07 (5d) (b) 3. For taxable years beginning after December 31, 2012, for the
16taxable year certified by the department of administration, an amount equal to 25
17percent of the claimant's bona fide angel investment made directly in a qualified new
18business venture.
AB338,15 19Section 15. 71.07 (5d) (c) 2. of the statutes is amended to read:
AB338,5,2320 71.07 (5d) (c) 2. For taxable years beginning before January 1, 2008, the
21maximum amount of a claimant's investment that may be used as the basis for a
22credit under this subsection is $2,000,000 for each investment made directly in a
23business certified under s. 238.15 (1), 2011 stats. or s. 560.205 (1), 2009 stats.
AB338,16 24Section 16. 71.07 (5d) (d) 1. of the statutes is amended to read:
AB338,6,6
171.07 (5d) (d) 1. Except as provided under s. 238.15 (3) (d) (intro.) 16.296 (3)
2(d) (intro.)
, for investments made after December 31, 2007, if an investment for which
3a claimant claims a credit under par. (b) is held by the claimant for less than 3 years,
4the claimant shall pay to the department, in the manner prescribed by the
5department, the amount of the credit that the claimant received related to the
6investment.
AB338,17 7Section 17. 71.07 (5d) (d) 2. of the statutes is amended to read:
AB338,6,108 71.07 (5d) (d) 2. Section For taxable years beginning before January 1, 2013,
9s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
10under this subsection.
AB338,18 11Section 18. 71.07 (5d) (d) 2m. of the statutes is created to read:
AB338,6,1412 71.07 (5d) (d) 2m. For taxable years beginning after December 31, 2012, s.
1371.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
14credit under this subsection.
AB338,19 15Section 19. 71.07 (5d) (d) 5. of the statutes is created to read:
AB338,6,2116 71.07 (5d) (d) 5. For taxable years beginning after December 31, 2012, if the
17allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
1871.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified
19by the department of revenue to the department of administration for payment by
20check, share draft, or other draft drawn from the appropriation account under s.
2120.835 (2) (ba).
AB338,20 22Section 20. 71.10 (4) (gwb) of the statutes is amended to read:
AB338,6,2423 71.10 (4) (gwb) Early stage seed investment credit under s. 71.07 (5b), except
24as provided under par. (i)
.
AB338,21 25Section 21. 71.10 (4) (gx) of the statutes is amended to read:
AB338,7,2
171.10 (4) (gx) Angel investment credit under s. 71.07 (5d), except as provided
2under par. (i)
.
AB338,22 3Section 22. 71.10 (4) (i) of the statutes is amended to read:
AB338,7,174 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
5preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
6beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
7credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
871.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
9credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
1071.07 (3rm), food processing plant and food warehouse investment credit under s.
1171.07 (3rn), early stage seed investment credit under s. 71.07 (5b) (d) 4., angel
12investment credit under s. 71.07 (5d) (d) 5.,
film production services credit under s.
1371.07 (5f), film production company investment credit under s. 71.07 (5h), veterans
14and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs
15credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under
16s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments
17under s. 71.09, and taxes withheld under subch. X.
AB338,23 18Section 23. 71.28 (3q) (c) 3. of the statutes is amended to read:
AB338,7,2319 71.28 (3q) (c) 3. The maximum amount of credits that may be awarded under
20this subsection and ss. 71.07 (3q) and 71.47 (3q) for the period beginning on January
211, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of
22any credits reallocated under s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats. 16.296
23(3) (d).
AB338,24 24Section 24. 71.28 (5b) (a) 2. of the statutes is amended to read:
AB338,8,2
171.28 (5b) (a) 2. "Fund manager" means an investment fund manager certified
2under s. 238.15 (2) or s. 560.205 (2), 2009 stats. 16.296 (2).
AB338,25 3Section 25. 71.28 (5b) (b) of the statutes is amended to read:
AB338,8,104 71.28 (5b) (b) Filing claims. 1. For taxable years beginning after December
531, 2004, subject
Subject to the limitations provided under this subsection and s.
6238.15 or s. 560.205, 2009 stats. 16.296, and except as provided in subd. 2., a claimant
7may claim as a credit against the tax imposed under s. 71.23, up to the amount of
8those taxes, 25 percent of the claimant's investment paid to a fund manager that the
9fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009
10stats.
16.296 (1).
AB338,8,1911 2. In the case of a partnership, limited liability company, or tax-option
12corporation, the computation of the 25 percent limitation under subd. 1. shall be
13determined at the entity level rather than the claimant level and may be allocated
14among the claimants who make investments in the manner set forth in the entity's
15organizational documents. The entity shall provide to the department of revenue
16and to the department of commerce or the Wisconsin Economic Development
17Corporation
administration the names and tax identification numbers of the
18claimants, the amounts of the credits allocated to the claimants, and the
19computation of the allocations.
AB338,26 20Section 26. 71.28 (5b) (d) 1. of the statutes is amended to read:
AB338,8,2321 71.28 (5b) (d) 1. Subsection For taxable years beginning before January 1,
222013, sub.
(4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit
23under this subsection.
AB338,27 24Section 27. 71.28 (5b) (d) 1m. of the statutes is created to read:
AB338,9,3
171.28 (5b) (d) 1m. For taxable years beginning after December 31, 2012, sub.
2(4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under
3this subsection.
AB338,28 4Section 28. 71.28 (5b) (d) 3. of the statutes is amended to read:
AB338,9,105 71.28 (5b) (d) 3. Except as provided under s. 238.15 (3) (d) (intro.) 16.296 (3)
6(d) (intro.)
, for investments made after December 31, 2007, if an investment for which
7a claimant claims a credit under par. (b) is held by the claimant for less than 3 years,
8the claimant shall pay to the department, in the manner prescribed by the
9department, the amount of the credit that the claimant received related to the
10investment.
AB338,29 11Section 29. 71.28 (5b) (d) 4. of the statutes is created to read:
AB338,9,1712 71.28 (5b) (d) 4. For taxable years beginning after December 31, 2012, if the
13allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
1471.23, the amount of the claim not used to offset the tax due shall be certified by the
15department of revenue to the department of administration for payment by check,
16share draft, or other draft drawn from the appropriation account under s. 20.835 (2)
17(ba).
AB338,30 18Section 30. 71.30 (3) (eop) of the statutes is amended to read:
AB338,9,2019 71.30 (3) (eop) Early stage seed investment credit under s. 71.28 (5b), except
20as provided under par. (f)
.
AB338,31 21Section 31. 71.30 (3) (f) of the statutes is amended to read:
AB338,9,2522 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
23farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
24investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
25facility investment credit under s. 71.28 (3r), woody biomass harvesting and

1processing credit under s. 71.28 (3rm), food processing plant and food warehouse
2investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
3(3w), early stage seed investment credit under s. 71.28 (5b) (d) 4., film production
4services credit under s. 71.28 (5f), film production company investment credit under
5s. 71.28 (5h), beginning farmer and farm asset owner tax credit under s. 71.28 (8r),
6and estimated tax payments under s. 71.29.
AB338,32 7Section 32. 71.47 (3q) (c) 3. of the statutes is amended to read:
AB338,10,128 71.47 (3q) (c) 3. The maximum amount of credits that may be awarded under
9this subsection and ss. 71.07 (3q) and 71.28 (3q) for the period beginning on January
101, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of
11any credits reallocated under s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats. 16.296
12(3) (d).
AB338,33 13Section 33. 71.47 (5b) (a) 2. of the statutes is amended to read:
AB338,10,1514 71.47 (5b) (a) 2. "Fund manager" means an investment fund manager certified
15under s. 238.15 (2) or s. 560.205 (2), 2009 stats. 16.296 (2).
AB338,34 16Section 34. 71.47 (5b) (b) of the statutes is amended to read:
AB338,10,2317 71.47 (5b) (b) Filing claims. 1. For taxable years beginning after December
1831, 2004, subject
Subject to the limitations provided under this subsection and s.
19238.15 or s. 560.205, 2009 stats. 16.296, and except as provided in subd. 2., a claimant
20may claim as a credit against the tax imposed under s. 71.43, up to the amount of
21those taxes, 25 percent of the claimant's investment paid to a fund manager that the
22fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009
23stats
16.296 (1).
AB338,11,724 2. In the case of a partnership, limited liability company, or tax-option
25corporation, the computation of the 25 percent limitation under subd. 1. shall be

1determined at the entity level rather than the claimant level and may be allocated
2among the claimants who make investments in the manner set forth in the entity's
3organizational documents. The entity shall provide to the department of revenue
4and to the department of commerce or the Wisconsin Economic Development
5Corporation
administration the names and tax identification numbers of the
6claimants, the amounts of the credits allocated to the claimants, and the
7computation of the allocations.
AB338,35 8Section 35. 71.47 (5b) (d) 1. of the statutes is amended to read:
AB338,11,119 71.47 (5b) (d) 1. Section For taxable years beginning before January 1, 2013,
10s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
11under this subsection.
AB338,36 12Section 36. 71.47 (5b) (d) 1m. of the statutes is created to read:
AB338,11,1513 71.47 (5b) (d) 1m. For taxable years beginning after December 31, 2012, s.
1471.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
15credit under this subsection.
AB338,37 16Section 37. 71.47 (5b) (d) 3. of the statutes is amended to read:
AB338,11,2217 71.47 (5b) (d) 3. Except as provided under s. 238.15 (3) (d) (intro.) 16.296 (3)
18(d) (intro.)
, for investments made after December 31, 2007, if an investment for which
19a claimant claims a credit under par. (b) is held by the claimant for less than 3 years,
20the claimant shall pay to the department, in the manner prescribed by the
21department, the amount of the credit that the claimant received related to the
22investment.
AB338,38 23Section 38. 71.47 (5b) (d) 4. of the statutes is created to read:
AB338,12,424 71.47 (5b) (d) 4. For taxable years beginning after December 31, 2012, if the
25allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.

171.43, the amount of the claim not used to offset the tax due shall be certified by the
2department of revenue to the department of administration for payment by check,
3share draft, or other draft drawn from the appropriation account under s. 20.835 (2)
4(ba).
AB338,39 5Section 39. 71.49 (1) (eop) of the statutes is amended to read:
AB338,12,76 71.49 (1) (eop) Early stage seed investment credit under s. 71.47 (5b), except
7as provided under par. (f)
.
AB338,40 8Section 40. 71.49 (1) (f) of the statutes is amended to read:
AB338,12,189 71.49 (1) (f) The total of farmland preservation credit under subch. IX,
10farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility
11investment credit under s. 71.47 (3p), jobs credit under s. 71.47 (3q), meat processing
12facility investment credit under s. 71.47 (3r), woody biomass harvesting and
13processing credit under s. 71.47 (3rm), food processing plant and food warehouse
14investment credit under s. 71.47 (3rn), enterprise zone jobs credit under s. 71.47
15(3w), early stage seed investment credit under s. 71.47 (5b) (d) 4., film production
16services credit under s. 71.47 (5f), film production company investment credit under
17s. 71.47 (5h), beginning farmer and farm asset owner tax credit under s. 71.47 (8r),
18and estimated tax payments under s. 71.48.
AB338,41 19Section 41. 73.03 (63) of the statutes is amended to read:
AB338,13,420 73.03 (63) Notwithstanding the amount limitations specified under s. 71.07
21(5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats. 16.296 (3) (d), in
22consultation with the department of commerce or the Wisconsin Economic
23Development Corporation
administration, to carry forward to subsequent taxable
24years unclaimed credit amounts of the early stage seed investment credits under ss.
2571.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under

1s. 71.07 (5d). Annually, no later than July 1, the department of commerce or the
2Wisconsin Economic Development Corporation
administration shall submit to the
3department of revenue its recommendations for the carry forward of credit amounts
4as provided under this subsection.
AB338,42 5Section 42. 76.638 (1) of the statutes is amended to read:
AB338,13,76 76.638 (1) Definitions. In this section, "fund manager" means an investment
7fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats. 16.296 (2).
AB338,43 8Section 43. 76.638 (2) of the statutes is amended to read:
AB338,13,149 76.638 (2) Filing claims. For taxable years beginning after December 31, 2008,
10subject
Subject to the limitations provided under this subsection and s. 238.15 or s.
11560.205, 2009 stats.
16.296, an insurer may claim as a credit against the fees imposed
12under s. 76.60, 76.63, 76.65, 76.66, or 76.67, 25 percent of the insurer's investment
13paid to a fund manager that the fund manager invests in a business certified under
14s. 238.15 or s. 560.205 (1), 2009 stats. 16.296 (1).
AB338,44 15Section 44. 238.15 (1) (intro.) of the statutes is renumbered 16.296 (1) (intro.)
16and amended to read:
AB338,13,2517 16.296 (1) Angel investment tax credits. (intro.) The corporation department
18shall implement a program to certify businesses for purposes of s. 71.07 (5d). A
19business desiring certification shall submit an application to the corporation
20department in each taxable year for which the business desires certification. The
21business shall specify in its application the investment amount it wishes to raise and
22the corporation department may certify the business and determine the amount that
23qualifies for purposes of s. 71.07 (5d). The corporation department may certify or
24recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of
25the following conditions:
AB338,45
1Section 45. 238.15 (1) (a) to (L) of the statutes are renumbered 16.296 (1) (a)
2to (L).
AB338,46 3Section 46. 238.15 (1) (m) 1. (intro.), a. and b. of the statutes are renumbered
416.296 (1) (m) 1. (intro.), a. and b.
AB338,47 5Section 47. 238.15 (1) (m) 1. c. of the statutes is renumbered 16.296 (1) (m) 1.
6c. and amended to read:
AB338,14,87 16.296 (1) (m) 1. c. The activities of the business's headquarters, as determined
8by the corporation department.
AB338,48 9Section 48. 238.15 (1) (m) 2. of the statutes is renumbered 16.296 (1) (m) 2.
AB338,49 10Section 49. 238.15 (2) of the statutes is renumbered 16.296 (2) and amended
11to read:
AB338,15,212 16.296 (2) Early stage seed investment tax credits. The corporation
13department shall implement a program to certify investment fund managers for
14purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. An investment fund
15manager desiring certification shall submit an application to the corporation
16department. The investment fund manager shall specify in the application the
17investment amount that the manager wishes to raise and the corporation
18department may certify the manager and determine the amount that qualifies for
19purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether
20to certify an investment fund manager, the corporation department shall consider
21the investment fund manager's experience in managing venture capital funds, the
22past performance of investment funds managed by the applicant, the expected level
23of investment in the investment fund to be managed by the applicant, and any other
24relevant factors. The corporation department may certify only investment fund

1managers that commit to consider placing investments in businesses certified under
2sub. (1).
AB338,50 3Section 50. 238.15 (3) of the statutes is renumbered 16.296 (3) and amended
4to read:
AB338,15,85 16.296 (3) Administration. (a) List of certified businesses and investment fund
6managers.
The corporation department shall maintain a list of businesses certified
7under sub. (1) and investment fund managers certified under sub. (2) and shall
8permit public access to the lists through the corporation's Internet Web site.
AB338,15,119 (b) Notification of department of revenue. The corporation department shall
10notify the department of revenue of every certification issued under subs. (1) and (2)
11and the date on which any such certification is revoked or expires.
AB338,16,1612 (d) Rules. The corporation department, in consultation with the department
13of revenue, shall adopt rules to administer this section. The rules shall further define
14"bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit
15the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for
16investments in businesses certified under sub. (1) at $3,000,000 per calendar year
17for calendar years beginning after December 31, 2004, and before January 1, 2008,
18$5,500,000 per calendar year for calendar years beginning after December 31, 2007,
19and before January 1, 2010, $6,500,000 for calendar year 2010, and $20,000,000 per
20calendar year for calendar years beginning after December 31, 2010, plus, for taxable
21years beginning after December 31, 2010, an additional $250,000 for tax credits that
22may be claimed for investments in nanotechnology businesses certified under sub.
23(1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07
24(5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be claimed for investments paid to
25fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar

1years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per
2calendar year for calendar years beginning after December 31, 2007, and before
3January 1, 2010, $8,000,000 for calendar year 2010, and $20,500,000 per calendar
4year for calendar years beginning after December 31, 2010, plus, for taxable years
5beginning after December 31, 2010, an additional $250,000 for tax credits that may
6be claimed for investments in nanotechnology businesses certified under sub. (1).
7The rules shall also provide that, for calendar years beginning after December 31,
82007, a person who receives a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47
9(5b), or 76.638 must keep the investment in a certified business, or with a certified
10fund manager, for no less than 3 years, unless the person's investment becomes
11worthless, as determined by the corporation department, during the 3-year period
12or the person has kept the investment for no less than 12 months and a bona fide
13liquidity event, as determined by the corporation department, occurs during the
143-year period. The rules shall permit the corporation department to reallocate
15credits under this section that are unused in any calendar year to a person eligible
16for tax benefits, as defined under s. 238.16 (1) (d), if all of the following apply:
AB338,16,1817 1. The corporation department notifies the joint committee on finance in
18writing of its proposed reallocation.
AB338,16,1919 2. One of the following is true:
AB338,16,2320 a. The cochairpersons of the joint committee on finance fail to notify the
21corporation department, within 14 working days after the date of the corporation's
22department's notification under subd. 1., that the committee has scheduled a
23meeting for the purpose of reviewing the proposed reallocation.
Loading...
Loading...