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:
AB531-ASA1,17,65 560.31 (2) (k) The person has provided the department with the person's
6organizational chart.
AB531-ASA1, s. 37 7Section 37. 560.32 (2) (b) of the statutes is renumbered 560.32 (2) (b) 1. and
8amended to read:
AB531-ASA1,17,129 560.32 (2) (b) 1. The Prior to the effective date of this subdivision .... [revisor
10inserts date], the
department may certify an investment under this subsection only
11if, after the certification, the department will not have certified a total of more than
12$50,000,000 in investments under this subsection.
AB531-ASA1, s. 38 13Section 38. 560.32 (2) (b) 2. of the statutes is created to read:
AB531-ASA1,17,1914 560.32 (2) (b) 2. Beginning on the effective date of this subdivision .... [revisor
15inserts date], the department shall certify investments for which notices have been
16received under par. (a), subject to the limit specified in this subdivision. The
17department may certify an investment under this subdivision only if, after the
18certification, the department will not have certified a total of more than $75,000,000
19in investments under this subdivision.
AB531-ASA1, s. 39 20Section 39. 560.32 (2) (c) of the statutes is renumbered 560.32 (2) (c) 1.
AB531-ASA1, s. 40 21Section 40. 560.32 (2) (c) 2. of the statutes is created to read:
AB531-ASA1,18,222 560.32 (2) (c) 2. The department may not certify an investment under par. (b)
232. if, after the certification, the investor, together with all affiliates of the investor,
24would have in certified capital investments under par. (b) 2. more than the greater

1of $10,000,000 or 15 percent of the total amount of investments that the department
2may certify under par. (b) 2.
AB531-ASA1, s. 41 3Section 41. 560.32 (2) (d) of the statutes is amended to read:
AB531-ASA1,18,224 560.32 (2) (d) If, as a result of the limitations under par. (b) or (c), the
5department may not certify the full amount requested in applications for certified
6capital investments submitted under par. (a), the department shall allocate prorate
7the amounts available for certification in order of priority based on the date on which
8the application was filed. If the amounts available for certification are insufficient
9to certify the full amount of all applications for certified capital investments that are
10submitted on the same day, the department shall prorate the available amount on
11the basis of the amount that the investor has committed to invest in the certified
12capital company under par. (a)
among eligible applicants, except as otherwise
13provided in this paragraph. If the proration would result in a certified capital
14company having less than $10,000,000 in certified capital, the department may not
15allocate any amount to that certified capital company. If the proration would result
16in no certified capital company having $10,000,000 or more in certified capital, the
17department may promulgate rules to implement an alternative allocation procedure.
18Notwithstanding s. 227.24 (1) (a), (2) (b), and (3), the department is not required to
19provide evidence that promulgating a rule under this paragraph as an emergency
20rule is necessary for the preservation of the public peace, health, safety, or welfare
21and is not required to provide a finding of an emergency for a rule promulgated under
22this paragraph
.
AB531-ASA1, s. 42 23Section 42. 560.32 (3) of the statutes is renumbered 560.32 (3) (a) and
24amended to read:
AB531-ASA1,19,8
1560.32 (3) (a) A certified investor may not, individually, or with or through one
2or more affiliates, own 10% or more of the equity securities in, be an affiliate, a
3general partner, or a manager of, or otherwise control the investments of the certified
4capital company. This subsection paragraph does not preclude a certified investor
5any person from exercising its legal rights and remedies, including interim
6management of a certified capital company, in the event that a certified capital
7company is in default of its statutory or contractual obligations to the certified
8investor
that or any other person.
AB531-ASA1, s. 43 9Section 43. 560.32 (3) (b) of the statutes is created to read:
AB531-ASA1,19,1210 560.32 (3) (b) Paragraph (a) does not preclude any person from establishing
11controls to ensure that a certified capital company satisfies the requirements of s.
12560.34 (1m).
AB531-ASA1, s. 44 13Section 44. 560.33 (1) (intro.) of the statutes is amended to read:
AB531-ASA1,19,1714 560.33 (1) Qualifications. (intro.) A Except as provided in sub. (2), a business
15is a qualified business if all of the following requirements are met, as of the time that
16a certified capital company, or any affiliate of the certified capital company, makes
17its first investment in the business, all of the following requirements are met:
AB531-ASA1, s. 45 18Section 45. 560.33 (1) (a) of the statutes is amended to read:
AB531-ASA1,19,2319 560.33 (1) (a) The business is headquartered in this state and its principal
20business operations are located in this state or the business commits to relocate its
21headquarters and its principal business operations to this state within 90 days after
22the date on which the certified capital company makes its first investment in the
23business
.
AB531-ASA1, s. 46 24Section 46. 560.33 (1) (b) of the statutes is renumbered 560.33 (1) (b) (intro.)
25and amended to read:
AB531-ASA1,20,2
1560.33 (1) (b) (intro.) The business has no more than 100 employees, at and any
2of the following applies:
AB531-ASA1,20,3 31. At least 75% of whom those employees are employed in this state.
AB531-ASA1, s. 47 4Section 47. 560.33 (1) (b) 2. of the statutes is created to read:
AB531-ASA1,20,65 560.33 (1) (b) 2. At least 75 percent of the total payroll of the business is paid
6to employees who are employed in this state.
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