AB538-ASA2,2,76
a. An individual who reviews new businesses or proposed new businesses for
7potential investment of the individual's money.
AB538-ASA2,2,88
b. A network of individuals who satisfy subd. 1.
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2. "Claimant" means an individual who files a claim under this subsection.
AB538-ASA2,2,1110
3. "Qualified new business venture" means a business that is certified under
11s. 560.03 (26).
AB538-ASA2,2,1612
(b)
Filing claims. Subject to the limitations provided in this subsection and in
13s. 560.03 (26), a claimant may claim as a credit against the tax imposed under s. 71.02
14or 71.08, up to the amount of those taxes, an amount equal to 40 percent of the
15claimant's bona fide angel investment made directly in a qualified new business
16venture in the taxable year.
AB538-ASA2,2,1817
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
18under this subsection for all taxable years combined is $30,000,000.
AB538-ASA2,2,2119
2. The maximum amount of a claimant's investment that may be used as the
20basis for a credit under this subsection is $500,000 for each investment made directly
21in a business certified under s. 560.03 (26).
AB538-ASA2,3,622
3. For a claimant who is a nonresident or part-year resident of this state and
23who is a single person or a married person filing a separate return, multiply the
24credit for which the claimant is eligible under par. (b) by a fraction, the numerator
25of which is the individual's Wisconsin adjusted gross income and the denominator of
1which is the individual's federal adjusted gross income. If a claimant is married and
2files a joint return, and if the claimant or the claimant's spouse, or both, are
3nonresidents or part-year residents of this state, multiply the credit for which the
4claimant is eligible under par. (b) by a fraction, the numerator of which is the couple's
5joint Wisconsin adjusted gross income and the denominator of which is the couple's
6joint federal adjusted gross income.
AB538-ASA2,3,107
(d)
Administration. 1. If an investment for which a claimant claims a credit
8under par. (b) is held by the claimant for less than one year, the claimant shall pay
9to the department, in the manner prescribed by the department, the amount of the
10credit that the claimant received related to the investment.
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2. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies
12to the credit under this subsection.
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3. Subsection (9e) (d), to the extent that it applies to the credit under that
14subsection, applies to the credit under this subsection.
AB538-ASA2, s. 3
15Section
3. 71.08 (1) (intro.) of the statutes is amended to read:
AB538-ASA2,3,2416
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
17couple filing jointly, trust or estate under s. 71.02, not considering the credits under
18ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s),
(5d), 19(6),
(6s), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and
20(3) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and
21subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the
22tax under this section, there is imposed on that natural person, married couple filing
23jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax
24computed as follows:
AB538-ASA2, s. 4
25Section
4. 71.10 (4) (gx) of the statutes is created to read:
AB538-ASA2,4,1
171.10
(4) (gx) Qualified new business venture credit under s. 71.07 (5d).
AB538-ASA2, s. 5
2Section
5. 560.03 (25) and (26) of the statutes are created to read:
AB538-ASA2,4,63
560.03
(25) In cooperation with the department of financial institutions and
4the board of regents of the University of Wisconsin System, provide education and
5other support to facilitate the development networks of bona fide angel investors, as
6defined in s. 71.07 (5d) (a) 1.
AB538-ASA2,4,23
7(26) (a) Certify businesses as qualified new business ventures for purposes of
8s. 71.07 (5d). The department shall promulgate rules for the administration of this
9subsection. The rules shall require a business desiring certification to submit an
10application to the department in each taxable year for which the business desires
11certification. The department shall maintain a list of businesses certified under this
12subsection and shall permit public access to the list through the department's
13Internet website. The department shall notify the department of revenue of every
14business certified under this subsection and the date on which any such business is
15decertified. Annually, no later than September 15, the department of commerce shall
16submit a report to the chief clerk of each house of the legislature for distribution to
17the legislature under s. 13.172 (2), listing the total amount of tax credits claimed
18under s. 71.07 (5d) per taxable year, the name of each business in which investments
19qualifying for such tax credits were made, the amount of such tax credits, the amount
20of such investments, and any other information the department considers
21reasonable to include. Unless otherwise provided under the rules of the department
22of commerce, a business may be certified under this subsection, and may maintain
23such certification, only if the business satisfies all of the following conditions:
AB538-ASA2,4,2424
1. It has its headquarters in this state.
AB538-ASA2,5,2
12. At least 51 percent of the employees employed by the business are employed
2in this state.
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3. Its average annual net income, if any, for each of the 2 taxable years
4immediately preceding the taxable year to which the certification applies does not
5exceed $5,000,000.
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4. It's net worth, in any, in the taxable year to which the certification applies
7does not exceed $10,000,000.
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5. It is engaged in, or has committed to engage in, manufacturing, agriculture,
9or processing or assembling products and conducting research and development or
10developing a new product or business process.
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6. It is not engaged in real estate development, insurance, banking, lending,
12lobbying, political consulting, professional services provided by attorneys,
13accountants, business consultants, physicians, or health care consultants, wholesale
14or retail trade, leisure, hospitality, transportation, or construction.
AB538-ASA2,5,1515
7. It has less than 100 employees.
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8. It has been in operation in this state for not more than 7 consecutive years.
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9. It has not received more than $1,000,000 in investments that have qualified
18for tax credits under s. 71.07 (5d).
AB538-ASA2,5,2419
(b) In consultation with the department of revenue, promulgate rules to limit
20the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for
21investments in businesses certified under par. (a) at $5,000,000 per taxable year.
22The rules may not permit the department of commerce or the department of revenue
23to assign a dollar amount of investments qualifying for the tax credits under s. 71.07
24(5d) that a particular business may subsequently raise.
AB538-ASA2,6,52
(a) The department of commerce shall submit in proposed form the rules
3required under section 560.03 (26) of the statutes, as created by this act, to the
4legislative council staff under section 227.15 (1) of the statutes no later than the first
5day of the 6th month beginning after the effective date of this paragraph.
AB538-ASA2,6,96
(b) The department of revenue shall submit in proposed form the rules required
7under section 71.07 (5d) (a) 1. of the statutes, as created by this act, to the legislative
8council staff under section 227.15 (1) of the statutes no later than the first day of the
96th month beginning after the effective date of this paragraph.
AB538-ASA2,6,1311
(1)
Qualified new business venture credit. The treatment of sections 71.05
12(6) (a) 15., 71.07 (5d), 71.08 (1) (intro.), and 71.10 (4) (gx) of the statutes first applies
13to taxable years beginning on January 1, 2006.
AB538-ASA2, s. 8
14Section
8.
Effective dates. This act takes effect on July 1, 2004, except as
15follows:
AB538-ASA2,6,1616
(1)
Rules. Section 6 (1) of this act takes effect on the day after publication.