AB531-ASA1,6,2419 (e) 1. If a certified capital company is decertified, or an investment pool is
20disqualified, under s. 560.37 before the certified capital company fulfills the
21investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment
22pool, any claimant that has received a credit under this subsection with respect to
23that investment pool shall repay that credit to the department of revenue and may
24not claim more credit in respect to that investment pool.
AB531-ASA1,7,10
12. If a certified capital company fulfills the investment requirement under s.
2560.34 (1m) (a) 1. with respect to an investment pool but the certified capital
3company is decertified, or an investment pool is disqualified, under s. 560.37 before
4the certified capital company fulfills the investment requirement under s. 560.34
5(1m) (a) 2. for that investment pool, any claimant that has received a credit under
6this subsection with respect to that investment pool shall repay all credits that were
7claimed for taxable years after the taxable year that includes the 3rd anniversary of
8the investment date of the investment pool and may claim no more credits for taxable
9years after the taxable year that includes the 3rd anniversary of the investment date
10of the investment pool.
AB531-ASA1, s. 7 11Section 7. 71.30 (3) (dm) of the statutes is created to read:
AB531-ASA1,7,1212 71.30 (3) (dm) The certified capital company credit under s. 71.28 (7m).
AB531-ASA1, s. 8 13Section 8. 71.34 (1) (g) of the statutes is amended to read:
AB531-ASA1,7,1614 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
15corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), and
16(3g), and (7m) and passed through to shareholders.
AB531-ASA1, s. 9 17Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB531-ASA1,7,2318 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
19computed under s. 71.47 (1dd) to (1dx), (7) and (7m) and not passed through by a
20partnership, limited liability company, or tax-option corporation that has added that
21amount to the partnership's, limited liability company's, or tax-option corporation's
22income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
23s. 71.47 (1), (3), (4), and (5).
AB531-ASA1, s. 10 24Section 10. 71.47 (7) of the statutes is created to read:
AB531-ASA1,7,2525 71.47 (7) Certified capital company credit. (a) In this subsection:
AB531-ASA1,8,1
11. "Certified capital company" has the meaning given in s. 560.30 (2).
AB531-ASA1,8,22 2. "Certified capital investment" has the meaning given in s. 560.30 (4).
AB531-ASA1,8,33 3. "Investment date" has the meaning given in s. 560.30 (6).
AB531-ASA1,8,44 4. "Investment pool" has the meaning given in s. 560.30 (7).
AB531-ASA1,8,55 5. "Qualified investment" has the meaning given in s. 560.30 (11).
AB531-ASA1,8,136 (b) An insurer who makes a certified capital investment of at least $1,000,000
7may claim as a credit against the tax imposed under s. 71.43, for 10 years beginning
8with the year of the investment, an amount equal to either 7.5 percent of that
9investment for the first 2 taxable years and 10.625 percent of that investment for the
10remaining 8 taxable years or the amount by which the sum of the insurer's certified
11capital investments and the insurer's qualified investments exceeds the insurer's
12qualified investments in the taxable year before the insurer first claimed the credit
13under this section, whichever is less.
AB531-ASA1,8,1514 (c) Section 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under s. 71.28
15(4), applies to the credit under this subsection.
AB531-ASA1,8,2116 (d) 1. If a certified capital company is decertified, or an investment pool is
17disqualified, under s. 560.37 before the certified capital company fulfills the
18investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment
19pool, any insurer that has received a credit under this subsection with respect to that
20investment pool shall repay that credit to the department of revenue and may not
21claim more credit in respect to that investment pool.
AB531-ASA1,9,622 2. If a certified capital company fulfills the investment requirement under s.
23560.34 (1m) (a) 1. with respect to an investment pool but the certified capital
24company is decertified, or an investment pool is disqualified, under s. 560.37 before
25the certified capital company fulfills the investment requirement under s. 560.34

1(1m) (a) 2. for that investment pool, any insurer that has received a credit under this
2subsection with respect to that investment pool shall repay all credits that were
3claimed for taxable years after the taxable year that includes the 3rd anniversary of
4the investment date of the investment pool and may claim no more credits for taxable
5years after the taxable year that includes the 3rd anniversary of the investment date
6of the investment pool.
AB531-ASA1,9,107 (e) An insurer may sell a credit under this subsection to another insurer who
8is subject to the tax imposed under s. 71.43 if the insurer notifies the commissioner
9of insurance and the department of revenue of the sale and includes with such
10notifications copies of the transfer documents.
AB531-ASA1, s. 11 11Section 11. 71.47 (7m) of the statutes is created to read:
AB531-ASA1,9,1212 71.47 (7m) Certified capital company credit. (a) In this subsection:
AB531-ASA1,9,1313 1. "Certified capital company" has the meaning given in s. 560.30 (2).
AB531-ASA1,9,1414 2. "Certified capital investment" has the meaning given in s. 560.30 (4).
AB531-ASA1,9,1815 3. "Claimant" means a person who is subject to taxation under subchs. I, II, and
16IV of ch. 76, a credit union organized under ch. 186, a savings bank organized under
17ch. 214, a savings and loan association organized under ch. 215, or a bank organized
18under ch. 221.
AB531-ASA1,9,1919 4. "Investment date" has the meaning given in s. 560.30 (6).
AB531-ASA1,9,2020 5. "Investment pool" has the meaning given in s. 560.30 (7).
AB531-ASA1,9,2121 6. "Qualified investment" has the meaning given in s. 560.30 (11).
AB531-ASA1,9,2522 (b) A claimant who makes a certified capital investment of at least $1,000,000
23may claim as a credit against the tax imposed under s. 71.43, up to the amount of
24those taxes, for 10 years beginning with the year of the investment, an amount equal
25to either 7.5 percent of that investment for the first 2 taxable years and 10.625

1percent of that investment for the remaining 8 taxable years or the amount by which
2the sum of the claimant's certified capital investments and the claimant's qualified
3investments exceeds the claimant's qualified investments in the taxable year before
4the claimant first claimed the credit under this subsection, whichever is less.
AB531-ASA1,10,65 (c) Subsection 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under 71.28
6(4), applies to the credit under this subsection.
AB531-ASA1,10,147 (d) Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their payment of a certified capital investment. A
10partnership, limited liability company, or tax-option corporation shall compute the
11amount of credit that each of its partners, members, or shareholders may claim and
12shall provide that information to each of them. Partners, members of limited liability
13companies, and shareholders of tax-option corporations may claim the credit in
14proportion to their ownership interest.
AB531-ASA1,10,2015 (e) 1. If a certified capital company is decertified, or an investment pool is
16disqualified, under s. 560.37 before the certified capital company fulfills the
17investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment
18pool, any claimant that has received a credit under this subsection with respect to
19that investment pool shall repay that credit to the department of revenue and may
20not claim more credit in respect to that investment pool.
AB531-ASA1,11,521 2. If a certified capital company fulfills the investment requirement under s.
22560.34 (1m) (a) 1. with respect to an investment pool but the certified capital
23company is decertified, or an investment pool is disqualified, under s. 560.37 before
24the certified capital company fulfills the investment requirement under s. 560.34
25(1m) (a) 2. for that investment pool, any claimant that has received a credit under

1this subsection with respect to that investment pool shall repay all credits that were
2claimed for taxable years after the taxable year that includes the 3rd anniversary of
3the investment date of the investment pool and may claim no more credits for taxable
4years after the taxable year that includes the 3rd anniversary of the investment date
5of the investment pool.
AB531-ASA1, s. 12 6Section 12. 71.49 (1) (dm) of the statutes is created to read:
AB531-ASA1,11,77 71.49 (1) (dm) Certified capital company credit under s. 71.47 (7).
AB531-ASA1, s. 13 8Section 13. 71.49 (1) (dn) of the statutes is created to read:
AB531-ASA1,11,99 71.49 (1) (dn) The certified capital company credit under s. 71.47 (7m).
AB531-ASA1, s. 14 10Section 14. 76.635 (2) of the statutes is renumbered 76.635 (2) (a) and
11amended to read:
AB531-ASA1,11,1812 76.635 (2) (a) An For taxable years beginning before July 1, 2005, an insurer
13that makes a certified capital investment may credit against the fees due under s.
1476.60, 76.63, 76.65, 76.66 or 76.67, for 10 years beginning with the year of the
15investment, either 10% 10 percent of that investment or the amount by which the
16sum of the insurer's certified capital investments and the insurer's qualified
17investments exceeds the insurer's qualified investments in the taxable year before
18the insurer first claimed the credit under this section, whichever is less.
AB531-ASA1, s. 15 19Section 15. 76.635 (2) (b) of the statutes is created to read:
AB531-ASA1,12,220 76.635 (2) (b) For taxable years beginning after June 30, 2005, an insurer that
21makes a certified capital investment may credit against the fees due under s. 76.60,
2276.63, 76.65, 76.66 or 76.67, for 10 years beginning with the year of the investment,
23either 7.5 percent of that investment for the first 2 taxable years and 10.625 percent
24of that investment for the remaining 8 taxable years or the amount by which the sum
25of the insurer's certified capital investments and the insurer's qualified investments

1exceeds the insurer's qualified investments in the taxable year before the insurer
2first claimed the credit under this section, whichever is less.
AB531-ASA1, s. 16 3Section 16. 77.92 (4) of the statutes is amended to read:
AB531-ASA1,12,184 77.92 (4) "Net business income", with respect to a partnership, means taxable
5income as calculated under section 703 of the Internal Revenue Code; plus the items
6of income and gain under section 702 of the Internal Revenue Code, including taxable
7state and municipal bond interest and excluding nontaxable interest income or
8dividend income from federal government obligations; minus the items of loss and
9deduction under section 702 of the Internal Revenue Code, except items that are not
10deductible under s. 71.21; plus guaranteed payments to partners under section 707
11(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
12(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (7m); and plus or
13minus, as appropriate, transitional adjustments, depreciation differences, and basis
14differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
15loss, and deductions from farming. "Net business income", with respect to a natural
16person, estate, or trust, means profit from a trade or business for federal income tax
17purposes and includes net income derived as an employee as defined in section 3121
18(d) (3) of the Internal Revenue Code.
AB531-ASA1, s. 17 19Section 17. Subchapter II (title) of chapter [precedes 560.30] of the statutes
20is amended to read:
AB531-ASA1,12,2121 Chapter 560
AB531-ASA1,12,2322 subchapter II
23 certified
Wisconsin capital companies
AB531-ASA1, s. 18 24Section 18. 560.30 (3) of the statutes is amended to read:
AB531-ASA1,13,2
1560.30 (3) "Certified capital company tax credit" means the tax credit under
2s. ss. 71.07 (7m), 71.28 (7m), 71.47 (7) and (7m), and 76.635.
AB531-ASA1, s. 19 3Section 19. 560.30 (5g) of the statutes is created to read:
AB531-ASA1,13,54 560.30 (5g) "Early stage business" means a qualified business that satisfies
5any of the following criteria:
AB531-ASA1,13,96 (a) At the time that a certified capital company makes an initial investment in
7the business, the business is involved in activities related to prototype development,
8establishment of initial production or service processes, or other development of
9initial product or service offerings.
AB531-ASA1,13,1310 (b) During the fiscal year preceding the year in which a certified capital
11company makes an initial investment in the business, the business had gross
12revenues of less than $2,000,000, on a consolidated basis, as determined in
13accordance with generally accepted accounting principles.
AB531-ASA1,13,1514 (c) The business is approved as an early stage business by the department
15under s. 560.33 (2).
AB531-ASA1, s. 20 16Section 20. 560.30 (5r) of the statutes is created to read:
AB531-ASA1,13,1917 560.30 (5r) "Investment criteria" means the investment criteria submitted to
18the department under s. 560.31 (2) (j), or any investment criteria subsequently
19approved as provided under the rules of the department.
AB531-ASA1, s. 21 20Section 21. 560.30 (9) of the statutes is renumbered 560.30 (9) (intro.) and
21amended to read:
AB531-ASA1,13,2422 560.30 (9) (intro.) "Qualified debt instrument" means a debt instrument that
23a certified capital company issues at par value or at a premium; that has and that
24satisfies all of the following criteria:
AB531-ASA1,14,2
1(a) The debt instrument has an original maturity date of at least 5 years from
2the date on which it was issued; that.
AB531-ASA1,14,4 3(b) The debt instrument has a repayment schedule that is no faster than a level
4principal amortization and, until over 5 years.
AB531-ASA1,14,8 5(c) Until the certified capital company may make distributions other than
6qualified distributions, the interest, distribution or payment features of which the
7debt instrument
are not related to the certified capital company's profitability or the
8performance of its investment portfolio.
AB531-ASA1, s. 22 9Section 22. 560.30 (9) (d) of the statutes is created to read:
AB531-ASA1,14,1110 560.30 (9) (d) The debt instrument does not permit the certified investor to
11receive prepayment of interest.
AB531-ASA1, s. 23 12Section 23. 560.30 (10) (intro.) of the statutes is amended to read:
AB531-ASA1,14,1413 560.30 (10) (intro.) "Qualified distribution" means a distribution or payment
14by a certified capital company to its equity holders for any of the following:
AB531-ASA1, s. 24 15Section 24. 560.30 (10) (a) of the statutes is amended to read:
AB531-ASA1,14,1716 560.30 (10) (a) The costs of forming, and syndicating, managing or operating
17the certified capital company, up to $750,000.
AB531-ASA1, s. 25 18Section 25. 560.30 (10) (b) of the statutes is amended to read:
AB531-ASA1,14,2119 560.30 (10) (b) An annual management fee that does not exceed 2.5% of the
20certified capital company's total certified capital or the cost of managing and
21operating the certified capital company, whichever is less
.
AB531-ASA1, s. 26 22Section 26. 560.30 (10) (c) of the statutes is repealed.
AB531-ASA1, s. 27 23Section 27. 560.30 (10) (d) of the statutes is amended to read:
AB531-ASA1,15,224 560.30 (10) (d) A projected increase in federal or state taxes, including
25excluding penalties and interest on those taxes, of the equity owners of the certified

1capital company if those amounts are related to the certified capital company's
2ownership, management, or operation.
AB531-ASA1, s. 28 3Section 28. 560.30 (10) (e) of the statutes is created to read:
AB531-ASA1,15,54 560.30 (10) (e) Reasonable costs associated with applying for qualified federal
5funding programs, as determined by the department.
AB531-ASA1, s. 29 6Section 29. 560.31 (1) of the statutes is renumbered 560.31 (1) (a) and
7amended to read:
AB531-ASA1,15,138 560.31 (1) (a) The department shall promulgate rules establishing procedures
9under which a person may apply to become a certified capital company for receiving
10certified capital investments under s. 560.32 (2) (b) 1. or a certified capital company
11for receiving certified capital investments under s. 560.32 (2) (b) 2
. The department
12shall grant or deny an application for certification under this section within 30 days
13of the date of application.
AB531-ASA1,15,25 14(b) If the department denies certification, the department shall include with
15the denial a detailed description of the grounds for the refusal, including suggestions
16for removal of those grounds. A person may submit an amended application within
1715 days of receipt of a notice of denial. The department shall grant or deny the
18amended application within 15 days of the date of the amended application. If the
19department denies certification based upon the amended application, the
20department shall include with the denial a detailed description of the grounds for the
21refusal. A person whose amended application is denied may, within 10 days after the
22department's decision, request a contested case hearing under s. 227.42 from the
23department. If the final administrative or judicial proceeding results in a
24determination that the application was denied in error, the department shall revise
25its determination accordingly.
AB531-ASA1, s. 30
1Section 30. 560.31 (2) (intro.) of the statutes is amended to read:
AB531-ASA1,16,42 560.31 (2) Requirements for certification. (intro.) The department shall may
3certify a person as a certified capital company if the department determines that all
4of the following conditions have been met:
AB531-ASA1, s. 31 5Section 31. 560.31 (2) (b) of the statutes is amended to read:
AB531-ASA1,16,86 560.31 (2) (b) The At the time of application and on the date on which the person
7is certified, the
person has a net worth, at the time of application, of at least $500,000
8and has at least $500,000 in cash, cash equivalents , and marketable securities.
AB531-ASA1, s. 32 9Section 32. 560.31 (2) (g) of the statutes is created to read:
AB531-ASA1,16,1210 560.31 (2) (g) The person agrees to maintain in this state an investment office
11and staff actively engaged in making investments until all investment pools have
12been decertified.
AB531-ASA1, s. 33 13Section 33. 560.31 (2) (h) of the statutes is created to read:
AB531-ASA1,16,2114 560.31 (2) (h) The person has provided the department with a list of all persons
15that have an ownership interest in the person as provided under this paragraph. The
16list shall include the percentage ownership interest of each owner and indicate
17whether the interest is voting or nonvoting. If the person is an entity that is
18registered under 15 USC 78l (g) or required to file reports under 15 USC 78o (d), the
19person shall list only those persons having beneficial ownership of equity securities
20of at least 5 percent. If a list contains the name of a business entity, the person shall
21also include a list of all persons that have an ownership interest in the entity.
AB531-ASA1, s. 34 22Section 34. 560.31 (2) (i) of the statutes is created to read:
AB531-ASA1,16,2423 560.31 (2) (i) The person has provided the department with a business plan
24covering at least the 5-year period following the date of application.
AB531-ASA1, s. 35 25Section 35. 560.31 (2) (j) of the statutes is created to read:
AB531-ASA1,17,3
1560.31 (2) (j) The person has provided the department with the person's
2investment strategy, along with a description of the investment criteria the person
3intends to follow.
AB531-ASA1, s. 36 4Section 36. 560.31 (2) (k) of the statutes is created to read:
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