2019 - 2020 LEGISLATURE
May 15, 2019 - Introduced by Senators Marklein, L. Taylor, Cowles,
and Tiffany, cosponsored by Representatives Zimmerman, Fields,
Crowley, Haywood, Hutton, Kuglitsch, Kulp, Krug, Loudenbeck, Macco,
Murphy, Ohnstad, Ott, Quinn, Ramthun, Rohrkaste, Sinicki, Skowronski,
Tauchen, Thiesfeldt, Vruwink and Zamarripa. Referred to Committee on
Agriculture, Revenue and Financial Institutions.
1An Act to renumber and amend
76.638 (2); and to create
76.638 (2) (b) and 2
76.638 (2m) of the statutes; relating to: allocation of early stage seed
3investment credit to offset taxes imposed on insurers.
Analysis by the Legislative Reference Bureau
This bill allows the allocation of the early stage seed investment credit to offset
certain taxes imposed on insurers.
Under current law, insurers subject to the premium and gross investment
income taxes may claim the early stage seed investment credit to offset them. The
credit equals 25 percent of the claimant's investment paid to a fund manager who
invests in a new business venture that is certified by the Wisconsin Economic
Development Corporation. Under the bill, in the case of a partnership, limited
liability company, or tax-option corporation, the 25 percent limitation is determined
at the entity level, rather than the claimant level, and may be allocated among the
claimants according to the entity's organizational documents. The bill also provides
that a partnership, limited liability company, or tax-option corporation may not
claim the credit against these taxes, but rather must compute the credit amount that
each of its partners, members, or shareholders may claim and notify them of the
amount. The partners, members, or shareholders may claim the credit according to
their ownership interest or as specially allocated in the entity's organizational
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
76.638 (2) of the statutes is renumbered 76.638 (2) (a) and amended 2
(a) Filing claims.
For taxable years beginning after December 31, 4
2008, subject to the limitations provided under this subsection section
and s. 238.15 5
or s. 560.205, 2009 stats., and except as provided in par. (b),
an insurer may claim 6
as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67, 25 7
percent of the insurer's investment paid to a fund manager that the fund manager 8
invests in a business certified under s. 238.15 or s. 560.205 (1), 2009 stats.
76.638 (2) (b) of the statutes is created to read:
(b) In the case of a partnership, limited liability company, or 11
tax-option corporation, the computation of the 25 percent limitation under par. (a) 12
shall be determined at the entity level rather than the claimant level and may be 13
allocated among the claimants who make investments in the manner set forth in the 14
entity's organizational documents. The entity shall provide to the department of 15
revenue and to the department of commerce or the Wisconsin Economic 16
Development Corporation the names and tax identification numbers of the 17
claimants, the amounts of the credits allocated to the claimants, and the 18
computation of the allocations.
76.638 (2m) of the statutes is created to read:
76.638 (2m) Limitations
. Partnerships, limited liability companies, and 21
tax-option corporations may not claim the credit under this section, but the
eligibility for, and the amount of, the credit are based on their payment of amounts 2
under sub. (2). A partnership, limited liability company, or tax-option corporation 3
shall compute the amount of credit that each of its partners, members, or 4
shareholders may claim and shall provide that information to each of them. 5
Partners, members of limited liability companies, and shareholders of tax-option 6
corporations may claim the credit in proportion to their ownership interest or as 7
specially allocated in their organizational documents.