SB260: Bill Text

SB260,4,18 71.07 (5d) (a) 1. (intro.) "Bona fide angel investment" means a purchase of an equity interest, or any other expenditure, as determined by rule under s. 238.15 or s. 560.205, 2009 stats. 16.296, that is made by any of the following:

SB260,10 Section 10. 71.07 (5d) (a) 2m. of the statutes is amended to read:

SB260,4,23 71.07 (5d) (a) 2m. "Person" means a partnership or limited liability company that is a nonoperating entity, as determined by the department of commerce or the Wisconsin Economic Development Corporation administration, a natural person, or fiduciary.

SB260,11 Section 11. 71.07 (5d) (a) 3. of the statutes is amended to read:

SB260,5,2 71.07 (5d) (a) 3. "Qualified new business venture" means a business that is certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats. 16.296 (1).

SB260,12 Section 12. 71.07 (5d) (b) (intro.) of the statutes is amended to read:

SB260,5,7 71.07 (5d) (b) (intro.) Filing claims. Subject to the limitations provided in this subsection and in s. 238.15 or s. 560.205, 2009 stats. 16.296, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of those taxes, the following:

SB260,13 Section 13. 71.07 (5d) (b) 2. of the statutes is amended to read:

SB260,5,13 71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, and before January 1, 2014, for the taxable year certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 25 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

SB260,14 Section 14. 71.07 (5d) (b) 3. of the statutes is created to read:

SB260,5,18 71.07 (5d) (b) 3. For taxable years beginning after December 31, 2013, for the taxable year certified by the department of administration, an amount equal to 25 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

SB260,15 Section 15. 71.07 (5d) (c) 2. of the statutes is amended to read:

SB260,5,23 71.07 (5d) (c) 2. For taxable years beginning before January 1, 2008, the maximum amount of a claimant's investment that may be used as the basis for a credit under this subsection is $2,000,000 for each investment made directly in a business certified under s. 238.15 (1), 2011 stats. or s. 560.205 (1), 2009 stats.

SB260,16 Section 16. 71.07 (5d) (d) 1. of the statutes is amended to read:

SB260,6,6 71.07 (5d) (d) 1. Except as provided under s. 238.15 (3) (d) (intro.) 16.296 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB260,17 Section 17. 71.07 (5d) (d) 2. of the statutes is amended to read:

SB260,6,10 71.07 (5d) (d) 2. Section For taxable years beginning before January 1, 2014, s. 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB260,18 Section 18. 71.07 (5d) (d) 2m. of the statutes is created to read:

SB260,6,14 71.07 (5d) (d) 2m. For taxable years beginning after December 31, 2013, s. 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB260,19 Section 19. 71.07 (5d) (d) 5. of the statutes is created to read:

SB260,6,21 71.07 (5d) (d) 5. For taxable years beginning after December 31, 2013, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB260,20 Section 20. 71.10 (4) (gwb) of the statutes is amended to read:

SB260,6,24 71.10 (4) (gwb) Early stage seed investment credit under s. 71.07 (5b), except as provided under par. (i).

SB260,21 Section 21. 71.10 (4) (gx) of the statutes is amended to read:

SB260,7,2 71.10 (4) (gx) Angel investment credit under s. 71.07 (5d), except as provided under par. (i).

SB260,22 Section 22. 71.10 (4) (i) of the statutes is amended to read:

SB260,7,17 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), early stage seed investment credit under s. 71.07 (5b) (d) 4., angel investment credit under s. 71.07 (5d) (d) 5., film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB260,23 Section 23. 71.28 (3q) (c) 3. of the statutes is amended to read:

SB260,7,23 71.28 (3q) (c) 3. The maximum amount of credits that may be awarded under this subsection and ss. 71.07 (3q) and 71.47 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats. 16.296 (3) (d).

SB260,24 Section 24. 71.28 (5b) (a) 2. of the statutes is amended to read:

SB260,8,2 71.28 (5b) (a) 2. "Fund manager" means an investment fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats. 16.296 (2).

SB260,25 Section 25. 71.28 (5b) (b) of the statutes is amended to read:

SB260,8,10 71.28 (5b) (b) Filing claims. 1. For taxable years beginning after December 31, 2004, subject Subject to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009 stats. 16.296, and except as provided in subd. 2., a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, 25 percent of the claimant's investment paid to a fund manager that the fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats. 16.296 (1).

SB260,8,19 2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity's organizational documents. The entity shall provide to the department of revenue and to the department of commerce or the Wisconsin Economic Development Corporation administration the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.

SB260,26 Section 26. 71.28 (5b) (d) 1. of the statutes is amended to read:

SB260,8,23 71.28 (5b) (d) 1. Subsection For taxable years beginning before January 1, 2014, sub. (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB260,27 Section 27. 71.28 (5b) (d) 1m. of the statutes is created to read:

SB260,9,3 71.28 (5b) (d) 1m. For taxable years beginning after December 31, 2013, sub. (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB260,28 Section 28. 71.28 (5b) (d) 3. of the statutes is amended to read:

SB260,9,10 71.28 (5b) (d) 3. Except as provided under s. 238.15 (3) (d) (intro.) 16.296 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB260,29 Section 29. 71.28 (5b) (d) 4. of the statutes is created to read:

SB260,9,17 71.28 (5b) (d) 4. For taxable years beginning after December 31, 2013, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB260,30 Section 30. 71.30 (3) (eop) of the statutes is amended to read:

SB260,9,20 71.30 (3) (eop) Early stage seed investment credit under s. 71.28 (5b), except as provided under par. (f).

SB260,31 Section 31. 71.30 (3) (f) of the statutes is amended to read:

SB260,9,25 71.30 (3) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing facility investment credit under s. 71.28 (3r), woody biomass harvesting and processing credit under s. 71.28 (3rm), food processing plant and food warehouse investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28 (3w), early stage seed investment credit under s. 71.28 (5b) (d) 4., film production services credit under s. 71.28 (5f), film production company investment credit under s. 71.28 (5h), beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated tax payments under s. 71.29.

SB260,32 Section 32. 71.47 (3q) (c) 3. of the statutes is amended to read:

SB260,10,12 71.47 (3q) (c) 3. The maximum amount of credits that may be awarded under this subsection and ss. 71.07 (3q) and 71.28 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats. 16.296 (3) (d).

SB260,33 Section 33. 71.47 (5b) (a) 2. of the statutes is amended to read:

SB260,10,15 71.47 (5b) (a) 2. "Fund manager" means an investment fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats. 16.296 (2).

SB260,34 Section 34. 71.47 (5b) (b) of the statutes is amended to read:

SB260,10,23 71.47 (5b) (b) Filing claims. 1. For taxable years beginning after December 31, 2004, subject Subject to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009 stats. 16.296, and except as provided in subd. 2., a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, 25 percent of the claimant's investment paid to a fund manager that the fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats 16.296 (1).

SB260,11,7 2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity's organizational documents. The entity shall provide to the department of revenue and to the department of commerce or the Wisconsin Economic Development Corporation administration the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.

SB260,35 Section 35. 71.47 (5b) (d) 1. of the statutes is amended to read:

SB260,11,11 71.47 (5b) (d) 1. Section For taxable years beginning before January 1, 2014, s. 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB260,36 Section 36. 71.47 (5b) (d) 1m. of the statutes is created to read:

SB260,11,15 71.47 (5b) (d) 1m. For taxable years beginning after December 31, 2013, s. 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB260,37 Section 37. 71.47 (5b) (d) 3. of the statutes is amended to read:

SB260,11,22 71.47 (5b) (d) 3. Except as provided under s. 238.15 (3) (d) (intro.) 16.296 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB260,38 Section 38. 71.47 (5b) (d) 4. of the statutes is created to read:

SB260,12,4 71.47 (5b) (d) 4. For taxable years beginning after December 31, 2013, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB260,39 Section 39. 71.49 (1) (eop) of the statutes is amended to read:

SB260,12,7 71.49 (1) (eop) Early stage seed investment credit under s. 71.47 (5b), except as provided under par. (f).

SB260,40 Section 40. 71.49 (1) (f) of the statutes is amended to read:

SB260,12,18 71.49 (1) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), jobs credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), woody biomass harvesting and processing credit under s. 71.47 (3rm), food processing plant and food warehouse investment credit under s. 71.47 (3rn), enterprise zone jobs credit under s. 71.47 (3w), early stage seed investment credit under s. 71.47 (5b) (d) 4., film production services credit under s. 71.47 (5f), film production company investment credit under s. 71.47 (5h), beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

SB260,41 Section 41. 73.03 (63) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

SB260,13,4 73.03 (63) Notwithstanding the amount limitations specified under s. 560.205 (3) (d), 2009 stats., or s. 238.15 (3) (d) 16.296 (3) (d), in consultation with the Wisconsin Economic Development Corporation department of administration, to carry forward to subsequent taxable years unclaimed credit amounts of the early stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1, the Wisconsin Economic Development Corporation department of administration shall submit to the department of revenue its recommendations for the carry forward of credit amounts as provided under this subsection.

SB260,42 Section 42. 76.638 (1) of the statutes is amended to read:

SB260,13,7 76.638 (1) Definitions. In this section, "fund manager" means an investment fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats. 16.296 (2).

SB260,43 Section 43. 76.638 (2) of the statutes is amended to read:

SB260,13,14 76.638 (2) Filing claims. For taxable years beginning after December 31, 2008, subject Subject to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009 stats. 16.296, an insurer may claim as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67, 25 percent of the insurer's investment paid to a fund manager that the fund manager invests in a business certified under s. 238.15 or s. 560.205 (1), 2009 stats. 16.296 (1).

SB260,44 Section 44. 238.15 (1) (intro.) of the statutes is renumbered 16.296 (1) (intro.) and amended to read:

SB260,13,25 16.296 (1) Angel investment tax credits. (intro.) The corporation department shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the corporation department in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation department may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). The corporation department may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB260,45 Section 45. 238.15 (1) (a) to (L) of the statutes are renumbered 16.296 (1) (a) to (L).

SB260,46 Section 46. 238.15 (1) (m) 1. (intro.), a. and b. of the statutes are renumbered 16.296 (1) (m) 1. (intro.), a. and b.

SB260,47 Section 47. 238.15 (1) (m) 1. c. of the statutes is renumbered 16.296 (1) (m) 1. c. and amended to read:

SB260,14,8 16.296 (1) (m) 1. c. The activities of the business's headquarters, as determined by the corporation department.

SB260,48 Section 48. 238.15 (1) (m) 2. of the statutes is renumbered 16.296 (1) (m) 2.

SB260,49 Section 49. 238.15 (2) of the statutes is renumbered 16.296 (2) and amended to read:

SB260,15,2 16.296 (2) Early stage seed investment tax credits. The corporation department shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. An investment fund manager desiring certification shall submit an application to the corporation department. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the corporation department may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether to certify an investment fund manager, the corporation 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 corporation department may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

SB260,50 Section 50. 238.15 (3) of the statutes is renumbered 16.296 (3) and amended to read:

SB260,15,8 16.296 (3) Administration. (a) List of certified businesses and investment fund managers. The corporation department shall maintain a list of businesses certified under sub. (1) and investment fund managers certified under sub. (2) and shall permit public access to the lists through the corporation's Internet Web site.

SB260,15,11 (b) Notification of department of revenue. The corporation department shall notify the department of revenue of every certification issued under subs. (1) and (2) and the date on which any such certification is revoked or expires.

SB260,16,16 (d) Rules. The corporation department, in consultation with the department of revenue, shall adopt 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, 2010, $6,500,000 for calendar year 2010, and $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for 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), 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, 2010, $8,000,000 for calendar year 2010, and $20,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for 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, a person who receives a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), or 76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation department, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation department, occurs during the 3-year period. The rules shall permit the corporation department to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under s. 238.16 (1) (d), if all of the following apply:

SB260,16,18 1. The corporation department notifies the joint committee on finance in writing of its proposed reallocation.

SB260,16,19 2. One of the following is true:

SB260,16,23 a. The cochairpersons of the joint committee on finance fail to notify the corporation department, within 14 working days after the date of the corporation's department's notification under subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.

SB260,16,25 b. The cochairpersons of the joint committee on finance notify the corporation department that the committee has approved the proposed reallocation.

SB260,17,11 (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, 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 corporation department of administration 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 corporation department of administration 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.