LRB-3459/1
JK:jld:jf
2007 - 2008 LEGISLATURE
November 29, 2007 - Introduced by Representatives Strachota, Kerkman,
Townsend, Vos, Kaufert, LeMahieu, Albers, Hahn and Nass, cosponsored by
Senators Kanavas, Darling, Roessler, Olsen and Plale. Referred to
Committee on Jobs and The Economy.
AB598,1,3
1An Act to amend 71.07 (5b) (c) 1., 71.07 (5d) (c) 1., 71.28 (5b) (c) 1., 71.47 (5b)
2(c) 1., 560.205 (1) (f), 560.205 (1) (h) and 560.205 (3) (d) of the statutes;
relating
3to: allocating early stage seed and angel investment credits.
Analysis by the Legislative Reference Bureau
Under current law, generally, a taxpayer may claim a credit against the
taxpayer's income and franchise tax liability on certain amounts invested in new
businesses under the early stage seed investment tax credit or the angel investment
tax credit. Under current law, the total amount of early stage seed investment
credits that taxpayers may claim for all taxable years combined is $52,500,000 and
the total amount of angel investment credits that taxpayers may claim for all taxable
years combined is $47,500,000. Under this bill, the total amount of early stage seed
investment credits and angel investment credits that taxpayers may claim for all
taxable years combined is $100,000,000.
Under current law, the Department of Commerce (Commerce) may certify
businesses to receive angel investments if the businesses meet certain criteria, such
as having less than 100 employees. Under the bill, for certification purposes,
Commerce must give preference to businesses with less than 100 employees, but may
certify businesses with 100 employees or more and allow tax credits in lesser
amounts for investments in such businesses. In addition, the bill allows Commerce
to certify a business that is testing or producing a product at the time that business
seeks certification.
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:
AB598,2,53
71.07
(5b) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of the
4credits that may be claimed under this subsection
and sub. (5d) and ss. 71.28 (5b) and
571.47 (5b) for all taxable years combined is
$52,500,000 $100,000,000.
AB598,2,108
71.07
(5d) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of
9the credits that may be claimed under this subsection
and sub. (5b) and ss. 71.28 (5b)
10and 71.47 (5b) for all taxable years combined is
$47,500,000 $100,000,000.
AB598,2,1513
71.28
(5b) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of the
14credits that may be claimed under this subsection and ss. 71.07 (5b)
and (5d) and
1571.47 (5b) for all taxable years combined is
$52,500,000 $100,000,000.
AB598,2,2018
71.47
(5b) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of the
19credits that may be claimed under this subsection and ss. 71.07 (5b)
and (5d) and
2071.28 (5b) for all taxable years combined is
$52,500,000 $100,000,000.
AB598, s. 5
21Section
5. 560.205 (1) (f) of the statutes is amended to read:
AB598,3,6
1560.205
(1) (f) It is engaged in, or has committed to engage in, manufacturing,
2agriculture, or processing or assembling products and conducting research and
3development or developing a new product or business process.
The fact that a
4business is testing or producing a product at the time that the business seeks
5certification under this subsection shall not preclude the business from being
6certified under this subsection.
AB598, s. 6
7Section
6. 560.205 (1) (h) of the statutes is amended to read:
AB598,3,98
560.205
(1) (h)
It Except as provided in rules promulgated under sub. (3) (d),
9it has less than 100 employees.
AB598,4,912
560.205
(3) (d)
Rules. The department of commerce, in consultation with the
13department of revenue, shall promulgate rules to administer this section. The rules
14shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
15The rules shall provide that, for purposes of certifying businesses under sub. (1), the
16department shall give preference to businesses with less than 100 employees, but
17may certify businesses with 100 employees or more and allow tax credits in lesser
18amounts, based on a sliding scale, for investments in such businesses. The rules
19shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be
20claimed for investments in businesses certified under sub. (1) at $3,000,000 per
21calendar year for calendar years beginning after December 31, 2004, and $5,500,000
22per calendar year for calendar years beginning after December 31, 2007
, and before
23January 1, 2009. The rules shall also limit the aggregate amount of the tax credits
24under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b) that may be claimed for investments
25paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for
1calendar years beginning after December 31, 2004, and $6,000,000 per calendar year
2for calendar years beginning after December 31, 2007
, and before January 1, 2009.
3The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b)
4and (5d), 71.28 (5b), and 71.47 (5b) that may be claimed for investments under subs.
5(1) and (2) at $10,000,000 per calendar year for calendar years beginning after
6December 31, 2008. The rules shall also provide that, for calendar years beginning
7after December 31, 2007, no person may receive a credit under ss. 71.07 (5b) and (5d),
871.28 (5b), or 71.47 (5b) unless the person's investment is kept in a certified business,
9or with a certified fund manager, for no less than 3 years.
AB598,4,1111
(1) This act first applies to taxable years beginning on January 1, 2009.
