LRBs0422/1
FFK&RAC:cjs&kjf:ph
2011 - 2012 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2011 SENATE BILL 463
March 15, 2012 - Offered by Representatives Barca, Pasch, Mason, Molepske Jr
and Seidel.
SB463-ASA2,1,10
1An Act to repeal 71.07 (5d) (c) 1.;
to amend 25.14 (1) (a) (intro.), 71.07 (5b) (d)
23., 71.07 (5d) (d) 1., 71.28 (5b) (d) 3., 71.47 (5b) (d) 3., 73.03 (63), 238.15 (1)
3(intro.), 238.15 (1) (h), 238.15 (1) (j), 238.15 (1) (km) and 238.15 (3) (d) (intro.);
4and
to create 16.5195, 19.42 (10) (t), 19.42 (13) (p), 20.192 (1) (q), 25.90, 238.15
5(1) (m), 238.155 and subchapter III of chapter 238 [precedes 238.40] of the
6statutes;
relating to: grants to certified seed incubator funds, the angel
7investment and early stage seed investment tax credit programs, creation of a
8badger jobs fund to be administered by an investment committee appointed by
9and existing under the Wisconsin Economic Development Corporation,
10granting rule-making authority, and making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB463-ASA2,2,3
116.5195 Transfers to the badger jobs fund. (1) Beginning after June 30,
22013, at the beginning of each fiscal year, the secretary shall transfer $25,000,000
3from the general fund to the badger jobs fund.
SB463-ASA2,2,4
4(2) No moneys may be transferred under sub. (1) after June 30, 2016.
SB463-ASA2,2,76
19.42
(10) (t) The members of the badger jobs fund investment committee
7appointed under s. 238.41.
SB463-ASA2,2,109
19.42
(13) (p) The members of the badger jobs fund investment committee
10appointed under s. 238.41.
SB463-ASA2, s. 4
11Section
4. 20.192 (1) (q) of the statutes is created to read:
SB463-ASA2,2,1312
20.192
(1) (q)
Badger jobs fund. From the badger jobs fund, all moneys received
13under s. 16.5195 for investments and grants under subch. III of ch. 238.
SB463-ASA2, s. 5
14Section
5. 25.14 (1) (a) (intro.) of the statutes is amended to read:
SB463-ASA2,2,1915
25.14
(1) (a) (intro.) There is created a state investment fund under the
16jurisdiction and management of the board to be operated as an investment trust for
17the purpose of managing the securities of all funds that are required by law to be
18invested in the state investment fund
, the badger jobs fund, and all of the state's
19funds specified in s. 25.17 (1), except all of the following:
SB463-ASA2,2,25
2125.90 Badger jobs fund. There is established a separate nonlapsible trust
22fund designated as the badger jobs fund. The fund shall consist of all moneys
23deposited in the fund under s. 16.5195, together with all donations, gifts, or bequests
24made to the fund, all moneys transferred to the fund from other funds, and all income
25or interest earned by the fund.
SB463-ASA2,3,73
71.07
(5b) (d) 3.
For Except as provided under s. 238.15 (3) (d) (intro.), for 4investments made after December 31, 2007, if an investment for which a claimant
5claims a credit under par. (b) is held by the claimant for less than 3 years, the
6claimant shall pay to the department, in the manner prescribed by the department,
7the amount of the credit that the claimant received related to the investment.
SB463-ASA2,3,1511
71.07
(5d) (d) 1.
For Except as provided under s. 238.15 (3) (d) (intro.), for 12investments made after December 31, 2007, if an investment for which a claimant
13claims a credit under par. (b) is held by the claimant for less than 3 years, the
14claimant shall pay to the department, in the manner prescribed by the department,
15the amount of the credit that the claimant received related to the investment.
SB463-ASA2,3,2218
71.28
(5b) (d) 3.
For Except as provided under s. 238.15 (3) (d) (intro.), for 19investments made after December 31, 2007, if an investment for which a claimant
20claims a credit under par. (b) is held by the claimant for less than 3 years, the
21claimant shall pay to the department, in the manner prescribed by the department,
22the amount of the credit that the claimant received related to the investment.
SB463-ASA2,4,5
171.47
(5b) (d) 3.
For Except as provided under s. 238.15 (3) (d) (intro.), for 2investments made after December 31, 2007, if an investment for which a claimant
3claims a credit under par. (b) is held by the claimant for less than 3 years, the
4claimant shall pay to the department, in the manner prescribed by the department,
5the amount of the credit that the claimant received related to the investment.
SB463-ASA2,4,168
73.03
(63) Notwithstanding the amount limitations specified under
s. 71.07
9(5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats., in consultation with
10the department of commerce or the Wisconsin Economic Development Corporation,
11to carry forward to subsequent taxable years unclaimed credit amounts of the early
12stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638
13and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1,
14the department of commerce or the Wisconsin Economic Development Corporation
15shall submit to the department of revenue its recommendations for the carry forward
16of credit amounts as provided under this subsection.
SB463-ASA2,5,219
238.15
(1) Angel investment tax credits. (intro.) The corporation shall
20implement a program to certify businesses for purposes of s. 71.07 (5d). A business
21desiring certification shall submit an application to the corporation in each taxable
22year for which the business desires certification. The business shall specify in its
23application the investment amount it wishes to raise and the corporation may certify
24the business and determine the amount that qualifies for purposes of s. 71.07 (5d).
25 A business may be certified under this subsection, and may maintain such
1certification, The corporation may certify or recertify a business for purposes of s.
271.07 (5d) only if the business satisfies all of the following conditions:
SB463-ASA2,5,65
238.15
(1) (h)
It At the time it is initially certified under this subsection, it has
6less than 100 employees.
SB463-ASA2,5,109
238.15
(1) (j)
It At the time it is initially certified under this subsection, it has
10been in operation in this state for not more than 10 consecutive years.
SB463-ASA2,5,1513
238.15
(1) (km) It has not received aggregate private equity investment in cash
14of more than $10,000,000
prior to being before it is initially certified under this
15subsection.
SB463-ASA2,5,2317
238.15
(1) (m) 1. It agrees that it will not relocate outside of this state during
18the 3 years after it receives an investment for which a person may claim a tax credit
19under s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount
20determined under subd. 2., if the business relocates outside of this state during that
213-year period. For the purposes of this paragraph, a business relocates outside of
22this state when the business locates more than 51 percent of any of the following
23outside of this state:
SB463-ASA2,5,2424
a. The business's employees.
SB463-ASA2,5,2525
b. The business's total payroll.
SB463-ASA2,6,2
1c. The activities of the business's headquarters, as determined by the
2corporation.
SB463-ASA2,6,33
2. The amount of a penalty payment under subd. 1. is any of the following:
SB463-ASA2,6,54
a. If the relocation occurs less than 12 months after the investment, 100 percent
5of the tax credit that was claimed under s. 71.07 (5d) as the result of the investment.
SB463-ASA2,6,86
b. If the relocation occurs 12 months or more after the investment but less than
724 months after the investment, 80 percent of the tax credit that was claimed under
8s. 71.07 (5d) as the result of the investment.
SB463-ASA2,6,119
c. If the relocation occurs occurs 24 months or more after the investment but
10less than 36 months after the investment, 60 percent of the tax credit that was
11claimed under s. 71.07 (5d) as the result of the investment.
SB463-ASA2,7,1914
238.15
(3) (d)
Rules. (intro.) The corporation, in consultation with the
15department of revenue, shall adopt rules to administer this section. The rules shall
16further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The
17rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be
18claimed for investments in businesses certified under sub. (1) at $3,000,000 per
19calendar year for calendar years beginning after December 31, 2004, and before
20January 1, 2008, $5,500,000 per calendar year for calendar years beginning after
21December 31, 2007, and before January 1, 2010, $6,500,000 for calendar year 2010,
22and $20,000,000 per calendar year for calendar years beginning after December 31,
232010, plus, for taxable years beginning after December 31, 2010, an additional
24$250,000 for tax credits that may be claimed for investments in nanotechnology
25businesses certified under sub. (1). The rules shall also limit the aggregate amount
1of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be
2claimed for investments paid to fund managers certified under sub. (2) at $3,500,000
3per calendar year for calendar years beginning after December 31, 2004, and before
4January 1, 2008, $6,000,000 per calendar year for calendar years beginning after
5December 31, 2007, and before January 1, 2010, $8,000,000 for calendar year 2010,
6and $20,500,000 per calendar year for calendar years beginning after December 31,
72010, plus, for taxable years beginning after December 31, 2010, an additional
8$250,000 for tax credits that may be claimed for investments in nanotechnology
9businesses certified under sub. (1). The rules shall also provide that, for calendar
10years beginning after December 31, 2007,
no a person
may receive who receives a
11credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), or 76.638
unless the
12person's must keep the investment
is kept in a certified business, or with a certified
13fund manager, for no less than 3 years
, unless the person's investment becomes
14worthless, as determined by the corporation, during the 3-year period or the person
15has kept the investment for no less than 12 months and a bona fide liquidity event,
16as determined by the corporation, occurs during the 3-year period. The rules shall
17permit the corporation to reallocate credits under this section that are unused in any
18calendar year to a person eligible for tax benefits, as defined under s. 238.16 (1) (d),
19if all of the following apply:
SB463-ASA2,7,23
21238.155 Grants to certified seed incubator funds. (1)
Definition. In this
22section, "certified seed incubator fund" means a person certified by the corporation
23under sub. (4).
SB463-ASA2,7,25
24(2) Establishment of grant program. (a) The corporation shall establish an
25economic development program to make grants under this section.
SB463-ASA2,8,3
1(b) From the appropriation under s. 20.192 (1) (a), the corporation shall make
2grants to certified seed incubator funds that total at least $3,000,000 annually for
3investment in start-up businesses, as determined by the corporation.
SB463-ASA2,8,7
4(3) Application. Any person may apply to the corporation, on a form prescribed
5by the corporation, for certification under sub. (4). The application shall include the
6name, address, and tax identification number of the person and any other
7information the corporation requires.
SB463-ASA2,8,10
8(4) Certification. The corporation may certify an applicant who submits an
9application under sub. (3) to receive a grant under this section if the corporation
10determines that the applicant meets all of the following requirements: