LRBs0260/4
JK/MES/RJM:jd&cx:pg
2003 - 2004 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 2,
TO 2003 SENATE BILL 261
November 13, 2003 - Offered by Senators Panzer, Erpenbach, Darling, Plale,
Roessler, Moore, Lassa, Leibham and Kanavas.
SB261-SSA2,1,8
1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a), 71.34
2(1) (g), 71.45 (2) (a) 10. and 77.92 (4); and
to create 20.143 (1) (dk), 20.143 (1)
3(ik), 71.07 (5b), 71.07 (5d), 71.10 (4) (gwb), 71.10 (4) (gx), 71.28 (5b), 71.30 (3)
4(eop), 71.47 (5b), 71.49 (1) (eop), 560.03 (25), 560.205 and 560.275 of the
5statutes;
relating to: creating a technology commercialization grant and loan
6program, creating a qualified new business venture tax credit and an early
7stage investment tax credit, facilitating the development of certain investor
8networks, and granting rule-making authority and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB261-SSA2, s. 1
9Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
10the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB261-SSA2, s. 2
1Section
2. 20.143 (1) (dk) of the statutes is created to read:
SB261-SSA2,2,42
20.143
(1) (dk)
Technology commercialization grant and loan program;
3assistance. Biennially, the amounts in the schedule for grants and loans under s.
4560.275 (2).
SB261-SSA2, s. 3
5Section
3. 20.143 (1) (ik) of the statutes is created to read:
SB261-SSA2,2,86
20.143
(1) (ik)
Technology commercialization grant and loan program;
7repayments. All moneys received in repayment of grants and loans made under s.
8560.275 (2), to be used for grants and loans under s. 560.275 (2).
SB261-SSA2, s. 4
9Section
4. 71.05 (6) (a) 15. of the statutes is amended to read:
SB261-SSA2,2,1410
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
11(2di), (2dj), (2dL), (2dm), (2dr), (2ts), (2dx), (3g),
and (3s)
, (5b), and (5d) and not
12passed through by a partnership, limited liability company, or tax-option
13corporation that has added that amount to the partnership's, company's, or
14tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
SB261-SSA2,2,1616
71.07
(5b) Early stage investment credit. (a)
Definitions. In this subsection:
SB261-SSA2,2,1717
1. "Claimant" means a person who files a claim under this subsection.
SB261-SSA2,3,2
12. "Fund manager"means an investment fund manager certified under s.
2560.205 (2).
SB261-SSA2,3,93
(b)
Filing claims. For taxable years beginning after December 31, 2004, subject
4to the limitations provided under this subsection and s. 560.205, a claimant may
5claim as a credit against the tax imposed under ss. 71.02 and 71.08, up to the amount
6of those taxes, in each taxable year for 10 years, beginning with the taxable year in
7which the claimant's initial investment is made, 4 percent of the claimant's initial
8investment paid to a fund manager that the fund manager invests in a business
9certified under s. 560.205 (1).
SB261-SSA2,3,1210
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
11under this subsection and ss. 71.28 (5b) and 71.47 (5b) for all taxable years combined
12is $35,000,000.
SB261-SSA2,3,2113
2. Partnerships, limited liability companies, and tax-option corporations may
14not claim the credit under this subsection, but the eligibility for, and the amount of,
15the credit are based on their payment of amounts under par. (b). A partnership,
16limited liability company, or tax-option corporation shall compute the amount of
17credit that each of its partners, members, or shareholders may claim and shall
18provide that information to each of them. Partners, members of limited liability
19companies, and shareholders of tax-option corporations may claim the credit in
20proportion to their ownership interest or as specially allocated in their
21organizational documents.
SB261-SSA2,3,2322
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
23s. 71.28 (4), applies to the credit under this subsection.
SB261-SSA2,4,2
171.07
(5d) Qualified new business venture credit. (a)
Definitions. In this
2subsection:
SB261-SSA2,4,53
1. "Bona fide angel investment" means a purchase of an equity interest, or any
4other expenditure, as determined by rule by the department, that is made by any of
5the following:
SB261-SSA2,4,76
a. An individual who reviews new businesses or proposed new businesses for
7potential investment of the individual's money.
SB261-SSA2,4,88
b. A network of individuals who satisfy subd. 1.
SB261-SSA2,4,99
2. "Claimant" means an individual who files a claim under this subsection.
SB261-SSA2,4,1110
3. "Qualified new business venture" means a business that is certified under
11s. 560.205 (1).
SB261-SSA2,4,1612
(b)
Filing claims. Subject to the limitations provided in this subsection and in
13s. 560.205, a claimant may claim as a credit against the tax imposed under s. 71.02
14or 71.08, up to the amount of those taxes, an amount equal to 40 percent of the
15claimant's bona fide angel investment made directly in a qualified new business
16venture in the taxable year.
SB261-SSA2,4,1817
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
18under this subsection for all taxable years combined is $30,000,000.
SB261-SSA2,4,2119
2. The maximum amount of a claimant's investment that may be used as the
20basis for a credit under this subsection is $500,000 for each investment made directly
21in a business certified under s. 560.205 (1).
SB261-SSA2,5,622
3. For a claimant who is a nonresident or part-year resident of this state and
23who is a single person or a married person filing a separate return, multiply the
24credit for which the claimant is eligible under par. (b) by a fraction, the numerator
25of which is the individual's Wisconsin adjusted gross income and the denominator of
1which is the individual's federal adjusted gross income. If a claimant is married and
2files a joint return, and if the claimant or the claimant's spouse, or both, are
3nonresidents or part-year residents of this state, multiply the credit for which the
4claimant is eligible under par. (b) by a fraction, the numerator of which is the couple's
5joint Wisconsin adjusted gross income and the denominator of which is the couple's
6joint federal adjusted gross income.
SB261-SSA2,5,107
(d)
Administration. 1. If an investment for which a claimant claims a credit
8under par. (b) is held by the claimant for less than one year, the claimant shall pay
9to the department, in the manner prescribed by the department, the amount of the
10credit that the claimant received related to the investment.
SB261-SSA2,5,1211
2. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies
12to the credit under this subsection.
SB261-SSA2,5,1413
3. Subsection (9e) (d), to the extent that it applies to the credit under that
14subsection, applies to the credit under this subsection.
SB261-SSA2, s. 7
15Section
7. 71.08 (1) (intro.) of the statutes is amended to read:
SB261-SSA2,5,2416
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
17couple filing jointly, trust or estate under s. 71.02, not considering the credits under
18ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ts), (2dx), (2fd), (3m), (3s),
and
19(5b), (5d), (6),
(6s), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ts), (1dx), (1fd),
20(2m) and (3) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ts), (1dx), (1fd), (2m) and (3)
21and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than
22the tax under this section, there is imposed on that natural person, married couple
23filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative
24minimum tax computed as follows:
SB261-SSA2, s. 8
25Section
8. 71.10 (4) (gwb) of the statutes is created to read:
SB261-SSA2,6,1
171.10
(4) (gwb) Early stage investment credit under s. 71.07 (5b).
SB261-SSA2,6,33
71.10
(4) (gx) Qualified new business venture credit under s. 71.07 (5d).
SB261-SSA2,6,75
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
6(2dj), (2dL), (2dm), (2ts), (2dx), (3g),
and (3s)
, and (5b) and passed through to partners
7shall be added to the partnership's income.
SB261-SSA2,6,239
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
10the gross income as computed under the Internal Revenue Code as modified under
11sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
12computed under s. 71.28 (1), (3), (4), and (5) plus the amount of the credit computed
13under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ts), (1dx),
and (3g)
, and (5b) 14and not passed through by a partnership, limited liability company, or tax-option
15corporation that has added that amount to the partnership's, limited liability
16company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus
17the amount of losses from the sale or other disposition of assets the gain from which
18would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or
19otherwise disposed of at a gain and minus deductions, as computed under the
20Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
21amount equal to the difference between the federal basis and Wisconsin basis of any
22asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
23during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
SB261-SSA2,6,2525
71.28
(5b) Early stage investment credit. (a)
Definitions. In this subsection:
SB261-SSA2,7,1
11. "Claimant" means a person who files a claim under this subsection.
SB261-SSA2,7,32
2. "Fund manager" means an investment fund manager certified under s.
3560.205 (2).
SB261-SSA2,7,104
(b)
Filing claims. For taxable years beginning after December 31, 2004, subject
5to the limitations provided under this subsection and s. 560.205, a claimant may
6claim as a credit against the tax imposed under s. 71.23, up to the amount of those
7taxes, in each taxable year for 10 years, beginning with the taxable year in which the
8claimant's initial investment is made, 4 percent of the claimant's initial investment
9paid to a fund manager that the fund manager invests in a business certified under
10s. 560.205 (1).
SB261-SSA2,7,1311
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
12under this subsection and ss. 71.07 (5b) and 71.47 (5b) for all taxable years combined
13is $35,000,000.
SB261-SSA2,7,2214
2. Partnerships, limited liability companies, and tax-option corporations may
15not claim the credit under this subsection, but the eligibility for, and the amount of,
16the credit are based on their payment of amounts under par. (b). A partnership,
17limited liability company, or tax-option corporation shall compute the amount of
18credit that each of its partners, members, or shareholders may claim and shall
19provide that information to each of them. Partners, members of limited liability
20companies, and shareholders of tax-option corporations may claim the credit in
21proportion to their ownership interest or as specially allocated in their
22organizational documents.
SB261-SSA2,7,2423
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
24sub. (4), applies to the credit under this subsection.
SB261-SSA2,8,1
171.30
(3) (eop) Early stage investment credit under s. 71.28 (5b).
SB261-SSA2,8,53
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
4corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ts), (1dx), (3),
and 5(3g)
, and (5b) and passed through to shareholders.
SB261-SSA2,8,127
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
8computed under s. 71.47 (1dd) to (1dx)
and (5b) and not passed through by a
9partnership, limited liability company or tax-option corporation that has added that
10amount to the partnership's, limited liability company's or tax-option corporation's
11income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
12s. 71.47 (1), (3), (4) and (5).
SB261-SSA2,8,1414
71.47
(5b) Early stage investment credit. (a)
Definitions. In this subsection:
SB261-SSA2,8,1515
1. "Claimant" means a person who files a claim under this subsection.
SB261-SSA2,8,1716
2. "Fund manager" means an investment fund manager certified under s.
17560.205 (2).
SB261-SSA2,8,2418
(b)
Filing claims. For taxable years beginning after December 31, 2004, subject
19to the limitations provided under this subsection and s. 560.205, a claimant may
20claim as a credit against the tax imposed under s. 71.43, up to the amount of those
21taxes, in each taxable year for 10 years, beginning with the taxable year in which the
22claimant's initial investment is made, 4 percent of the claimant's initial investment
23paid to a fund manager that the fund manager invests in a business certified under
24s. 560.205 (1).
SB261-SSA2,9,3
1(c)
Limitations. 1. The maximum amount of the credits that may be claimed
2under this subsection and ss. 71.07 (5b) and 71.28 (5b) for all taxable years combined
3is $35,000,000.