AB75: Bill Text

AB75,1506,11 c. Services that are enabled by applying proprietary technology.

AB75,1506,15 2. It is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary technology.

AB75, s. 3063 Section 3063. 560.205 (1) (g) of the statutes is amended to read:

AB75,1506,22 560.205 (1) (g) 1. It is not primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).

AB75, s. 3064 Section 3064. 560.205 (1) (k) of the statutes is amended to read:

AB75,1507,3 560.205 (1) (k) It For taxable years beginning before January 1, 2008, it has not received more than $1,000,000 in investments that have qualified for tax credits under s. 71.07 (5d).

AB75, s. 3065 Section 3065. 560.205 (1) (kn) of the statutes is created to read:

AB75,1507,8 560.205 (1) (kn) For taxable years beginning after December 31, 2007, and before January 1, 2011, it has not received more than $4,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

AB75, s. 3066 Section 3066. 560.205 (1) (L) of the statutes is created to read:

AB75,1507,12 560.205 (1) (L) For taxable years beginning after December 31, 2010, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

AB75, s. 3067 Section 3067. 560.205 (2) of the statutes is amended to read:

AB75,1508,2 560.205 (2) Early stage seed investment tax credits. The department shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b), and 76.638. An investment fund manager desiring certification shall submit an application to the department. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the department may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b). In determining whether to certify an investment fund manager, the department shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The department may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

AB75, s. 3068 Section 3068. 560.205 (3) (d) of the statutes is amended to read:

AB75,1509,2 560.205 (3) (d) Rules. The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011, and $18,000,000 per calendar year for calendar years beginning after December 31, 2010 plus, for taxable years beginning after December 31, 2010, an additional $250,000 in tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007 , and before January 1, 2011, and $18,500,000 per calendar year for calendar years beginning after December 31, 2010 plus, for taxable years beginning after December 31, 2010, an additional $250,000 in tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), or 71.47 (5b), or 76.638 unless the person's investment is kept in a certified business, or with a certified fund manager, for no less than 3 years.

AB75, s. 3069 Section 3069. 560.205 (3) (e) of the statutes is created to read:

AB75,1509,15 560.205 (3) (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under s. 71.02, 71.23, or 71.47 or subch. III of ch. 76, if the person receives prior authorization from the investment fund manager and the manager then notifies the department of commerce and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The department may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred. The department shall deposit all fees collected under this paragraph in the appropriation account under s. 20.143 (1) (gm).

AB75, s. 3070 Section 3070. 560.2055 of the statutes is created to read:

AB75,1509,17 560.2055 Jobs tax credit. (1) Definitions. In this section:

AB75,1509,21 (a) 1. Except as provided in subd. 2., "business" means any organization or enterprise operated for profit, including a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.

AB75,1509,23 2. "Business" does not include a store or shop in which retail sales is the principal business.

AB75,1509,25 (b) "Eligible employee" means a person employed in a full-time job by a person certified under sub. (2).

AB75,1510,6 (c) "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.

AB75,1510,8 (d) "Tax benefits" means the jobs tax credit under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

AB75,1510,10 (2) Certification. The department may certify a person to receive tax benefits under this section if all of the following apply:

AB75,1510,11 (a) The person is operating or intends to operate a business in this state.

AB75,1510,13 (b) The person applies under this section and enters into a contract with the department.

AB75,1510,17 (3) Eligibility for tax benefits. A person certified under sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in the person's business and one of the following apply:

AB75,1510,20 (a) In a tier I county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $20,000 but not more than $100,000 in wages from the person in the year for which the credit is claimed.

AB75,1510,23 (b) In a tier II county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $30,000 but not more than $100,000 in wages from the person in the year for which the credit is claimed.

AB75,1511,3 (c) In a tier I county or municipality or a tier II county or municipality, the person improves the job-related skills of any eligible employee, trains any eligible employee on the use of job-related new technologies, or provides job-related training to any eligible employee whose employment with the person represents the employee's first full-time job.

AB75,1511,5 (4) Duration, limits, and expiration. (a) The certification of a person under sub. (2) may remain in effect for no more than 10 cumulative years.

AB75,1511,9 (b) 1. The department may award to a person certified under sub. (2) tax benefits for each eligible employee in an amount equal to up to 10 percent of the wages paid by the person to that employee if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:

AB75,1511,11 a. In a tier I county or municipality, at least $20,000 but not more than $100,000.

AB75,1511,13 b. In a tier II county or municipality, at least $30,000 but not more than $100,000.

AB75,1511,16 2. The department may award to a person certified under sub. (2) tax benefits in an amount to be determined by the department by rule for costs incurred by the person to undertake the training activities described in sub. (3) (c).

AB75,1511,18 (c) The department may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

AB75,1511,21 (5) Duties of the department. (a) The department of commerce shall notify the department of revenue when the department of commerce certifies a person to receive tax benefits.

AB75,1511,23 (b) The department of commerce shall notify the department of revenue within 30 days of revoking a certification made under sub. (2).

AB75,1512,3 (c) The department may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under sub. (2) (b).

AB75,1512,6 (d) The department shall determine the maximum amount of the tax credits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q) that a certified business may claim and shall notify the department of revenue of this amount.

AB75,1512,9 (e) The department shall annually verify the information submitted to the department by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

AB75,1512,11 (f) The department shall promulgate rules for the implementation and operation of this section, including rules relating to the following:

AB75,1512,14 1. The definitions of a tier I county or municipality and a tier II county or municipality. The department may consider all of the following information when establishing the definitions required under this subdivision:

AB75,1512,15 a. Unemployment rate.

AB75,1512,17 b. Percentage of families with incomes below the poverty line established under 42 USC 9902 (2).

AB75,1512,18 c. Median family income.

AB75,1512,19 d. Median per capita income.

AB75,1512,21 e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.

AB75,1512,23 2. A schedule of additional tax benefits for which a person who is certified under sub. (2) and who incurs costs related to job training under sub. (3) (c) may be eligible.

AB75,1512,24 3. Conditions for the revocation of a certification under par. (b).

AB75,1512,25 4. Conditions for the repayment of tax benefits under par. (c).

AB75, s. 3071 Section 3071. 560.207 (1) of the statutes is amended to read:

AB75,1513,5 560.207 (1) The department of commerce shall implement a program to certify taxpayers, including taxpayers who are members of dairy cooperatives, as eligible for the dairy manufacturing facility investment credit under ss. 71.07 (3p), 71.28 (3p), and 71.47 (3p).

AB75, s. 3072 Section 3072. 560.207 (2) of the statutes is amended to read:

AB75,1513,18 560.207 (2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of dairy manufacturing facility investment credits allocated to taxpayers in fiscal year 2007-08 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are not members of dairy cooperatives in fiscal year 2008-09, and in each fiscal year thereafter, may not exceed $700,000. The total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2009-10 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.

AB75, s. 3073 Section 3073. 560.208 of the statutes is created to read:

AB75,1513,25 560.208 Qualified new business ventures. (1) The department shall implement a program to certify qualified new business ventures for purposes of s. 71.05 (24). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. Subject to sub. (2), a business may be certified under this subsection, and may maintain such certification, only if the business is engaged in one of the following:

AB75,1514,1 (a) Developing a new product or business process.

AB75,1514,3 (b) Manufacturing, agriculture, or processing or assembling products and conducting research and development.

AB75,1514,8 (2) The department may not certify a business under sub. (1) if the business is engaged in real estate development, insurance, banking, lending, lobbying, political consultation, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail sales, leisure, hospitality, transportation, or construction.

AB75,1514,11 (3) (a) The department shall maintain a list of businesses certified under sub. (1) and shall permit public access to the lists through the department's Internet Web site.

AB75,1514,14 (b) The department of commerce shall notify the department of revenue of every certification issued under sub. (1) and the date on which a certification under sub. (1) is revoked or expires.

AB75, s. 3074 Section 3074. 560.209 of the statutes is created to read:

AB75,1514,18 560.209 Meat processing facility investment credit. (1) The department of commerce shall implement a program to certify taxpayers as eligible for the meat processing facility investment credit under ss. 71.07 (3r), 71.28 (3r), and 71.47 (3r).

AB75,1514,24 (2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of meat processing facility investment credits allocated to taxpayers in fiscal year 2009-10 may not exceed $300,000 and the total amount of meat processing facility investment credits allocated to taxpayers in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.

AB75,1515,3 (3) The department of commerce shall inform the department of revenue of every taxpayer certified under sub. (1) and the amount of credits allocated to the taxpayer.

AB75,1515,5 (4) The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section.

AB75, s. 3075 Section 3075. 560.277 of the statutes is created to read:

AB75,1515,9 560.277 Wisconsin venture fund. (1) Definition. In this section, "eligible institution" means a research institution or nonprofit organization involved in economic development.

AB75,1515,12 (2) Capital connections grants. From the appropriation under s. 20.143 (1) (bk), the department may award a grant to an eligible institution to fund a project that does any of the following:

AB75,1515,14 (a) Expands access for Wisconsin business ventures and entrepreneurs to existing capital networks.

AB75,1515,16 (b) Creates or runs a network to connect Wisconsin business ventures and entrepreneurs with available capital.

AB75,1515,18 (c) Creates an activity, event, or strategy to connect Wisconsin business ventures and entrepreneurs with available capital.

AB75,1515,24 (3) Venture seed grants. (a) From the appropriation under s. 20.143 (1) (bk), the department may award a grant to an eligible institution to match funds raised by the institution for funding a new business or determining proof of concept and feasibility of a new business idea, if the department determines the award of a grant will increase the amount of funding for new businesses or will leverage private investment and facilitate the creation of jobs in this state.

AB75,1516,2 (b) The proceeds of a grant awarded under this subsection shall be used to provide funding as proposed by the institution in the institution's application.

AB75,1516,4 (4) Rule making. The department shall promulgate rules for the administration of this section.

AB75,1516,7 (5) The department shall establish by rule a Wisconsin venture fund advisory council, which shall make recommendations to the department regarding all of the following:

AB75,1516,9 (a) A process by which the department, the department of financial institutions, and other qualified persons may review proposals.

AB75,1516,10 (b) The maximum amount of a grant awarded under sub. (2) or (3).

AB75,1516,13 (c) Requirements that applicants for grants under subs. (2) and (3) secure funding from sources other than the state to match a portion of the amount of a grant awarded under sub. (2) or (3).

AB75,1516,15 (d) Monitoring of projects funded by grants under sub. (2) or (3), including monitoring of job creation.

AB75, s. 3076 Section 3076. Subchapter II of chapter 560 [precedes 560.30] of the statutes is created to read:

AB75,1516,18 CHAPTER 560

AB75,1516,20 SUBCHAPTER iI forward innovation fund

AB75, s. 3077 Section 3077. 560.30 of the statutes is created to read:

AB75,1516,22 560.30 Definitions. In this subchapter:

AB75,1516,23 (1) "Board" means the economic policy board created under s. 15.155 (2).

AB75,1517,3 (2) "Business" means a company located in this state, a company that has made a firm commitment to locate a facility in this state, or a group of companies at least 80 percent of which are located in this state.

AB75,1517,7 (3) "Cluster" means a geographic, categorical, horizontal, or vertical concentration of interconnected, interdependent, or synergistic businesses, industries, research centers, or venues for the performance, creation, or display of the arts.