AB1177,19,42 71.47 (2s) Tribal gaming compact credit. (a) Definition. In this subsection,
3"claimant" means a Native American tribe that is located in this state, has entered
4into a gaming compact with this state, and files a claim under this subsection.
AB1177,19,95 (b) Filing claims. Subject to the limitations provided in this subsection, for
6taxable years beginning after December 31, 2005, a claimant may claim as a credit
7against the tax imposed under s. 71.43, up to the amount of the taxes, an amount
8equal to the amount the claimant paid in the taxable year to the state pursuant to
9a gaming compact, not to exceed $10,000,000 in any taxable year.
AB1177,19,1210 (c) Limitations. 1. No credit may be allowed under this subsection unless the
11claimant, in the taxable year, invests in a business this is certified to receive
12investments under s. 560.20 (2).
AB1177,19,1413 2. No credit may be allowed under this subsection unless the claimant submits
14with the claimant's return proof of the investment described under subd. 1.
AB1177,19,1715 3. The maximum amount of the credit that may be awarded under this
16subsection and ss. 71.07 (2s) and 71.28 (2s) for all claimants in each taxable year may
17not exceed $100,000,000.
AB1177,19,2518 4. Partnerships, limited liability companies, and tax-option corporations may
19not claim the credit under this subsection, but the eligibility for, and the amount of,
20the credit are based on their payment of amounts under par. (b). A partnership,
21limited liability company, or tax-option corporation shall compute the amount of
22credit that each of its partners, members, or shareholders may claim and shall
23provide that information to each of them. Partners, members of limited liability
24companies, and shareholders of tax-option corporations may claim the credit in
25proportion to their ownership interests.
AB1177,20,2
1(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
2s. 71.28 (4), applies to the credit under this subsection.
AB1177, s. 21 3Section 21. 71.49 (1) (eor) of the statutes is created to read:
AB1177,20,44 71.49 (1) (eor) Venture capital investment credits under s. 71.47 (2r).
AB1177, s. 22 5Section 22. 71.49 (1) (eos) of the statutes is created to read:
AB1177,20,66 71.49 (1) (eos) Tribal gaming compact credit under s. 71.47 (2s).
AB1177, s. 23 7Section 23. 73.03 (35p) of the statutes is created to read:
AB1177,20,118 73.03 (35p) To deny a portion of any credit claimed under s. 71.07 (2r) (b) or
9(2s) (b), 71.28 (2r) (b) or (2s) (b), or 71.47 (2r) (b) or (2s) (b), if granting the full amount
10claimed would violate a limitation specified under s. 71.07 (2r) (c) 1. or (2s) (b) or (c)
113., 71.28 (2r) (c) 1. or (2s) (b) or (c) 3., or 71.47 (2r) (c) 1. or (2s) (b) or (c) 3.
AB1177, s. 24 12Section 24. 77.92 (4) of the statutes is amended to read:
AB1177,21,213 77.92 (4) "Net business income," with respect to a partnership, means taxable
14income as calculated under section 703 of the Internal Revenue Code; plus the items
15of income and gain under section 702 of the Internal Revenue Code, including taxable
16state and municipal bond interest and excluding nontaxable interest income or
17dividend income from federal government obligations; minus the items of loss and
18deduction under section 702 of the Internal Revenue Code, except items that are not
19deductible under s. 71.21; plus guaranteed payments to partners under section 707
20(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
21(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2r), (2s), (3g), (3s), (3n), (3t), and (5b);
22and plus or minus, as appropriate, transitional adjustments, depreciation
23differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
24excluding income, gain, loss, and deductions from farming. "Net business income,"
25with respect to a natural person, estate, or trust, means profit from a trade or

1business for federal income tax purposes and includes net income derived as an
2employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
AB1177, s. 25 3Section 25. 560.20 of the statutes is created to read:
AB1177,21,5 4560.20 Venture capital investment program. (1) Definitions. In this
5section:
AB1177,21,66 (a) "Angel investor" means any of the following:
AB1177,21,87 1. An individual who reviews new businesses or proposed new businesses for
8potential investment of the individual's money.
AB1177,21,99 2. A network of individuals who satisfy subd. 1.
AB1177,21,1010 (b) "Board" means the Wisconsin economic leadership board.
AB1177,21,1211 (c) "Capital investment corporation or partnership" means the corporation or
12partnership selected under sub. (1m).
AB1177,21,1513 (e) "Fund manager" means a person who is selected by and under contract with
14the capital investment corporation or partnership to manage investment funds
15established by the capital investment corporation or partnership.
AB1177,21,1916 (f) "Native American business" means a business that is owned or operated by
17a member of a federally recognized American Indian tribe or band in this state or that
18is located within the boundaries of a federally recognized American Indian
19reservation in this state.
AB1177,22,2 20(1m) Selection of capital investment corporation or partnership. No later
21than the first day of the 2nd month beginning after the effective date of this
22subsection .... [revisor inserts date], the board shall select a corporation organized
23under ch. 180 or a partnership organized under ch. 179 to perform the duties of a
24capital investment corporation or partnership as specified under this section. The

1board shall select a corporation or partnership that satisfies, or, if applicable, makes
2a commitment to satisfy, all of the following:
AB1177,22,93 (a) The corporation or partnership establishes investment funds that are
4managed by fund managers, whose fees do not exceed an amount equal to 2.5 percent
5of the total assets in the applicable fund, annually. The funds shall include at least
6one fund that makes early stage seed investments in Native American businesses
7that are certified by the board under sub. (2) (b) and at least one fund that makes
8venture growth investments in Native American businesses that are certified by the
9board under sub. (2) (c).
AB1177,22,1210 (b) The purposes of the corporation or partnership include coordinating and
11facilitating investments in investment funds described in par. (a) and investments
12by fund managers in businesses as described in sub. (2) (b) to (d).
AB1177,22,1613 (c) The corporation or partnership is required, under its articles of
14incorporation, to monitor, analyze, and report to the board information requested by
15the board concerning the performance of fund managers and the economic impact,
16if any, the investments made by those fund managers have had on this state.
AB1177,22,1817 (d) The corporation or partnership, either directly or through a subsidiary,
18seeks out and provides assistance to businesses described in sub. (2) (b).
AB1177,22,2019 (e) The corporation or partnership works with businesses certified under sub.
20(2) and fund managers to assist in expanding the businesses.
AB1177,22,2321 (f) The corporation or partnership establishes measurable standards for its
22fund managers and holds the fund managers accountable for meeting those
23standards.
AB1177,23,3
1(g) The corporation or partnership coordinates and oversees a group of
2economic advisors to measure the economic impact, if any, that investments made
3by fund managers have had on this state.
AB1177,23,64 (h) The corporation or partnership coordinates and disseminates an economic
5media message to promote the purposes of this paragraph under this section, as
6determined by the board.
AB1177,23,97 (i) The corporation or partnership utilizes information technology to
8administer a management information system that tracks the business activities of
9the corporation or partnership and the investments made by fund managers.
AB1177,23,1310 (j) No owner of the corporation or partnership has made a certified capital
11investment, as defined under s. 560.30 (4), is a manager of a certified capital
12company, as defined in s. 560.30 (2), or is a fund manager of the corporation or
13partnership.
AB1177,23,1514 (k) The corporation or partnership does not assess a fee against any investment
15fund described in par. (a).
AB1177,23,1916 (L) The corporation or partnership and applicable fund manager do not receive
17any of the profits and gains on assets in any investment fund described in par. (a),
18unless the total amount distributed to all investors in the fund is at least equal to the
19total amount invested, plus 80 percent of the profits and gains.
AB1177,24,5 20(2) Certification for tax credits. (a) Generally. The board, in consultation
21with the capital investment corporation or partnership, shall promulgate rules
22establishing a procedure for the board to certify businesses as eligible to receive from
23fund managers investments that qualify an investor for tax credits under s. 71.07
24(2r) or (2s), 71.28 (2r) or (2s), or 71.47 (2r) or (2s). The rules shall require a business
25that desires to obtain a certification to file an application with the board. The rules

1shall require an applicant for certification to provide the board with any information
2the board determines is necessary to ensure eligibility for certification and
3compliance with this section and rules promulgated under this section. The board
4shall consult with the capital investment corporation or partnership in determining
5whether to certify any applicant.
AB1177,24,96 (b) Early stage seed investments. The board may certify a business, including
7a Native American business, as eligible to receive from fund managers investments
8that qualify the investors for tax credits under s. 71.07 (2r) (b) 1. or (2s), 71.28 (2r)
9(b) 1. or (2s), or 71.47 (2r) (b) 1. or (2s) only if the business satisfies all of the following:
AB1177,24,1110 1. The business is headquartered in this state and its principal business
11operations are located in this state.
AB1177,24,1312 2. The business is in need of seed capital and is unable to obtain conventional
13financing, as defined by the department by rule.
AB1177,24,1514 3. The business has no more than 100 employees, at least 75 percent of whom
15are employed in this state.
AB1177,24,1816 4. During its 2 most recent fiscal years, if any, the business had an average
17annual net income, after federal income taxes, of not more than $2,000,000, as
18determined in accordance with generally accepted accounting principles.
AB1177,24,2019 5. The business has a net worth of not more than $5,000,000, except that this
20subdivision does not apply if the business is a Native American business.
AB1177,24,2221 6. The business is not predominantly engaged in professional services provided
22by accountants, lawyers, or physicians.
AB1177,24,2323 7. The business is not engaged in the development of real estate for resale.
AB1177,24,2424 8. The business is not engaged in commercial banking or lending.
AB1177,25,4
1(c) Venture growth investments. The board may certify a business, including
2a Native American business, as eligible to receive from fund managers investments
3that qualify the investors for tax credits under s. 71.07 (2r) (b) 3. or (2s), 71.28 (2r)
4(b) 3. or (2s), or 71.47 (2r) (b) 3. or (2s) only if the business satisfies all of the following:
AB1177,25,65 1. The business is headquartered in this state and has significant business
6operations in this state.
AB1177,25,87 2. At least 51 percent of the business's employees are employed in this state or
8the business employs more than 500 employees in this state.
AB1177,25,129 3. During its 2 most recent fiscal years, the business had an average annual
10net income, after federal income taxes and excluding any carry-over losses, of less
11than $20,000,000, as determined in accordance with generally accepted accounting
12principles.
AB1177,25,1413 4. The business has a net worth of less than $75,000,000, except that this
14subdivision does not apply if the business is a Native American business.
AB1177,25,1615 5. The business is not predominantly engaged in professional services provided
16by accountants, lawyers, or physicians.
AB1177,25,1817 6. The business has been in existence for at least one year, but less than 10
18years.
AB1177,25,2219 (d) Women-, minority-, and community-based investments. The board may
20certify a business as eligible to receive from fund managers investments that qualify
21the investors for tax credits under s. 71.07 (2r) (b) 4. or (2s), 71.28 (2r) (b) 4. or (2s),
22or 71.47 (2r) (b) 4. or (2s) only if any of the following apply:
AB1177,26,223 1. The business is headquartered in this state, has significant business
24operations in this state, and is at least 51 percent owned, controlled, and actively

1managed by one or more women or minority group members, as defined in s. 560.036
2(1) (f).
AB1177,26,53 2. The business is headquartered in this state, has significant business
4operations in this state, and facilitates access to savings and credit by low-income
5consumers.
AB1177,26,86 3. The investments are made as part of a community-based investment
7strategy implemented by the fund manager and the business satisfies all of the
8requirements under par. (b) 1. to 8.
AB1177,26,129 (e) Angel investments. The board may certify a business as eligible to receive
10from angel investors investments that qualify the investors for tax credits under s.
1171.07 (2r) (b) 2. or (2s), 71.28 (2r) (b) 2. or (2s), or 71.47 (2r) (b) 2. or (2s) only if the
12business satisfies par (b) 1. to 8.
AB1177,26,24 13(3) Notice. (a) Certification. Upon approval of an application under sub. (2)
14(b) to (e), the board shall issue a written notice of certification to the applicable
15business and shall provide a copy of the notice to the capital investment corporation
16or partnership, the investment board, and the department of revenue, except that
17the board need not provide a copy of any notice of certification under sub. (2) (e) to
18the capital investment corporation or partnership or the investment board. Each
19notice shall include the following statement: "The Wisconsin economic leadership
20board has not recommended or approved an investment in this entity or assessed
21the merits or risks of such an investment. Investors should rely solely on their
22own investigation and analysis and seek investment, financial, legal, and tax
23advice before making their own decisions regarding investment in this entity
."
24The board shall provide any person with a copy of the notice upon request.
AB1177,27,7
1(b) Decertification. 1. Upon the discontinuance of a certification under sub. (2),
2the board shall issue a written notice of decertification to the applicable business and
3shall provide a copy of the notice to the capital investment corporation or
4partnership, the investment board, and the department of revenue, except that the
5board need not provide a copy of any notice of decertification of a business certified
6under sub. (2) (e) to the capital investment corporation or partnership or the
7investment board.
AB1177,27,98 2. Discontinuance of a certification under sub. (2) does not affect any current
9offering of ownership interests in the decertified business.
AB1177,27,19 10(4) Other board activities. (a) Promotional activities and legislation. The
11board, in consultation with the capital investment corporation or partnership, shall
12actively promote the purposes of this program under this section but shall not
13recommend that any person make a particular investment. The board shall solicit
14institutional investors to invest with fund managers, shall encourage fund managers
15to invest in businesses described in sub. (2) (b) to (d), and shall solicit businesses
16described in sub. (2) (b) to (d) that may benefit from investments made by fund
17managers. The board shall recommend to the legislature any statutory changes that
18the board considers necessary or proper to carry out the purposes of the program
19under this section.
AB1177,28,220 (b) Report. Annually, no later than September 15, the board shall submit a
21report to the chief clerk of each house of the legislature for distribution to the
22legislature under s. 13.172 (2), describing the performance of investments made by
23fund managers, the total amount of tax credits claimed under ss. 71.07 (2r) or (2s),
2471.28 (2r) or (2s), and 71.47 (2r) or (2s) with regard to those investments, and the
25economic impact, if any, the investments have had on this state. The department of

1revenue shall provide the board with any information the board requests for
2preparation of the report under this paragraph.
AB1177, s. 26 3Section 26. 560.203 of the statutes is created to read:
AB1177,28,5 4560.203 Tribal gaming compact investment rebate. (1) Definitions. In
5this section:
AB1177,28,66 (a) "Indian gaming receipts" has the meaning given in s. 569.01 (1m).
AB1177,28,77 (b) "Indian tribe" has the meaning given in s. 569.01 (3).
AB1177,28,13 8(2) Rebates to Indian tribes. (a) Annually, not later than September 1, the
9department shall calculate the amount of the rebate to be made to each eligible
10Indian tribe from which the state has received gaming receipts. The amount of a
11rebate to an eligible Indian tribe shall be equal to 5 percent of the sum of Indian
12gaming receipts received by the state in the immediately preceding fiscal year from
13the eligible Indian tribe, except as follows:
AB1177,28,1514 1. A rebate to an eligible Indian tribe under this section may not exceed
15$10,000,000.
AB1177,28,1716 2. The total amount of all rebates under this section may not exceed
17$100,000,000 per year.
AB1177,28,2018 (b) Annually, the department shall make a rebate to an eligible Indian tribe
19from the appropriation under s. 20.143 (1) (kn) in the amount calculated by the
20department under par. (a).
AB1177,28,23 21(3) Eligibility. An Indian tribe is eligible to receive a rebate under this section
22if the Indian tribe has entered into an agreement with the department to invest a
23rebate under this section in an investment fund established under s. 560.20.
AB1177, s. 27 24Section 27. Nonstatutory provisions.
AB1177,28,2525 (1) Rules.
AB1177,29,10
1(a) Emergency rules. Using the procedure under section 227.24 of the statutes,
2the Wisconsin economic leadership board may promulgate rules required under
3section 560.20 of the statutes, as created by this act, for the period before the effective
4date of the rules submitted under paragraph (b ), but not to exceed the period
5authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding
6section 227.24 (1) (a), (2) (b), and (3) of the statutes, the board is not required to
7provide evidence that promulgating a rule under this paragraph as an emergency
8rule is necessary for the preservation of the public peace, health, safety, or welfare
9and is not required to provide a finding of emergency for a rule promulgated under
10this paragraph.
AB1177,29,1511 (b) Permanent rules. The Wisconsin economic leadership board shall submit
12in proposed form the rules required under section 560.20 of the statutes, as created
13by this act, to the legislative council staff under section 227.15 (1) of the statutes no
14later than the first day of the 4th month beginning after the effective date of this
15paragraph.
AB1177, s. 28 16Section 28. Effective date.
AB1177,29,1817 (1) This act takes effect on January 1, 2006, or on the day after publication,
18whichever is later.
AB1177,29,1919 (End)
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