AB641, s. 29
1Section 29. 71.47 (5r) of the statutes is created to read:
AB641,17,32 71.47 (5r) Postsecondary education credit. (a) Definitions. In this
3subsection:
AB641,17,44 1. "Claimant" means a corporation that files a claim under this subsection.
AB641,17,55 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
AB641,17,66 3. "Family member" has the meaning given in s. 157.061 (7).
AB641,17,97 4. "Managing employee" means an individual who wholly or partially exercises
8operational or managerial control over, or who directly or indirectly conducts, the
9operation of the claimant's business.
AB641,17,1110 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
11an individual for the tuition that the individual paid or incurred.
AB641,17,1212 6. "Qualified postsecondary institution" means all of the following:
AB641,17,1513 a. A University of Wisconsin System institution, a technical college system
14institution, or a regionally accredited 4-year nonprofit college or university having
15its regional headquarters and principal place of business in this state.
AB641,17,1716 b. A school approved under s. 38.50, if the delivery of education occurs in this
17state.
AB641,17,2018 (b) Filing claims. Subject to the limitations provided in this subsection, a
19claimant may claim as a credit against the tax imposed under s. 71.43 an amount
20equal to the following:
AB641,17,2421 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
22individual to participate in an education program of a qualified postsecondary
23institution, if the individual was enrolled in a course of instruction and eligible for
24a grant from the Federal Pell Grant Program.
AB641,18,6
12. Thirty percent of the tuition that the claimant paid or incurred for an
2individual to participate in an education program of a qualified postsecondary
3institution, if the individual was enrolled in a course of instruction that relates to a
4projected worker shortage in this state, as determined by the local workforce
5development boards established under 29 USC 2832, and if the individual was
6eligible for a grant from the Federal Pell Grant Program.
AB641,18,97 (c) Limitations. 1. No credit maybe allowed under par. (b) unless the claimant
8certifies to the department of revenue that the claimant will not be reimbursed for
9any amount of tuition for which the claimant claims a credit under par. (b).
AB641,18,1210 2. A claimant may not claim the credit under par. (b) for any tuition amounts
11that the individual described under par. (b) excluded under section 127 of the
12Internal Revenue Code.
AB641,18,1513 3. A claimant may not claim the credit under par. (b) for any tuition amounts
14that the claimant paid or incurred for a family member of a managing employee
15unless all of the following apply:
AB641,18,1916 a. The family member was employed an average of at least 20 hours per week
17as an employee of the claimant, or the claimant's business, during the one-year
18period prior to commencing participation in the education program in connection
19with which the claimant claims a credit under par. (b).
AB641,18,2120 b. The family member is enrolled in a course of instruction that is substantially
21related to the claimant's business.
AB641,18,2322 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
23that the claimant paid or incurred for an individual who is not a resident of this state.
AB641,19,224 4. The claimant shall claim the credit for the taxable year in which the
25individual graduates from a course of instruction in an amount equal to the total

1amount the claimant paid or incurred under par. (b) for all taxable years in which
2the claimant paid or incurred such amounts related to that individual.
AB641,19,103 5. Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of tuition under par. (b). A partnership, limited
6liability company, or tax-option corporation shall compute the amount of credit that
7each of its partners, members, or shareholders may claim and shall provide that
8information to each of them. Partners, members of limited liability companies, and
9shareholders of tax-option corporations may claim the credit in proportion to their
10ownership interest.
AB641,19,1211 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
12s. 71.28 (4), applies to the credit under this subsection.
AB641, s. 30 13Section 30. 71.49 (1) (cd) of the statutes is created to read:
AB641,19,1414 71.49 (1) (cd) Postsecondary education credit under s. 71.47 (5r).
AB641, s. 31 15Section 31. 77.92 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
16amended to read:
AB641,20,717 77.92 (4) "Net business income," with respect to a partnership, means taxable
18income as calculated under section 703 of the Internal Revenue Code; plus the items
19of income and gain under section 702 of the Internal Revenue Code, including taxable
20state and municipal bond interest and excluding nontaxable interest income or
21dividend income from federal government obligations; minus the items of loss and
22deduction under section 702 of the Internal Revenue Code, except items that are not
23deductible under s. 71.21; plus guaranteed payments to partners under section 707
24(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
25(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),

1(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r); and plus or minus, as
2appropriate, transitional adjustments, depreciation differences, and basis
3differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
4loss, and deductions from farming. "Net business income," with respect to a natural
5person, estate, or trust, means profit from a trade or business for federal income tax
6purposes and includes net income derived as an employee as defined in section 3121
7(d) (3) of the Internal Revenue Code.
AB641, s. 32 8Section 32. 560.203 of the statutes is created to read:
AB641,20,18 9560.203 Targeted microloans. The department shall create a pilot program
10for making microloans from the appropriation under s. 20.143 (1) (c) at nominal
11interest rates for the creation of new businesses. The department shall designate 2
12areas of the state, one urban and one rural, that are affected by high unemployment.
13Only residents of the areas designated by the department are eligible for loans under
14this section, and the amount of a loan under this section may not exceed $25,000.
15The department shall partner with federal, state, regional, and local economic
16development entities to provide business training for applicants and borrowers
17under this section. The department may not make a loan under this section after
18July 31, 2013.
AB641, s. 33 19Section 33. 560.205 (3) (d) of the statutes, as affected by 2009 Wisconsin Act
202
, is amended to read:
AB641,21,2021 560.205 (3) (d) Rules. The department of commerce, in consultation with the
22department of revenue, shall promulgate rules to administer this section. The rules
23shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
24The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may
25be claimed for investments in businesses certified under sub. (1) at $3,000,000 per

1calendar year for calendar years beginning after December 31, 2004, and before
2January 1, 2008, $5,500,000 per calendar year for calendar years beginning after
3December 31, 2007, and before January 1, 2011 2010, $6,500,000 for calendar year
42010
, and $18,000,000 $20,000,000 per calendar year for calendar years beginning
5after December 31, 2010, plus, for taxable years beginning after December 31, 2010,
6an additional $250,000 for tax credits that may be claimed for investments in
7nanotechnology businesses certified under sub. (1). The rules shall also limit the
8aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and
976.638 that may be claimed for investments paid to fund managers certified under
10sub. (2) at $3,500,000 per calendar year for calendar years beginning after December
1131, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar
12years beginning after December 31, 2007, and before January 1, 2011 2010,
13$8,000,000 for calendar year 2010
, and $18,500,000 $20,500,000 per calendar year
14for calendar years beginning after December 31, 2010, plus, for taxable years
15beginning after December 31, 2010, an additional $250,000 for tax credits that may
16be claimed for investments in nanotechnology businesses certified under sub. (1).
17The rules shall also provide that, for calendar years beginning after December 31,
182007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47
19(5b), or 76.638 unless the person's investment is kept in a certified business, or with
20a certified fund manager, for no less than 3 years.
AB641, s. 34 21Section 34. 560.27 (1) (c) of the statutes is created to read:
AB641,22,722 560.27 (1) (c) Annually, beginning in fiscal year 2010-11, the department shall
23award a grant of $100,000 from the appropriation under s. 20.143 (1) (d) to the
24high-technology business development corporation. The department shall enter
25into an agreement with the high-technology business development corporation

1requiring the grant proceeds to be used for employing a grant writer to assist
2businesses to apply for federal small business innovation research grants. The
3department shall submit annually to the legislature under s. 13.172 (2) a report
4detailing the number of grant applications assisted by the grant writer, the number
5of applications assisted by the grant writer that won grants and the total amount of
6the grants, and the number of any jobs created as a result of the grant writer's
7activities.
AB641, s. 35 8Section 35. 560.276 of the statutes is created to read:
AB641,22,10 9560.276 Technology transfer grant and loan program. (1) Definitions.
10In this section:
AB641,22,1111 (a) "Business" has the meaning given in s. 560.60 (2).
AB641,22,1212 (b) "Research institution" means any of the following if located in this state:
AB641,22,1313 1. An accredited college or university.
AB641,22,1514 2. An accredited school of medicine, dentistry, veterinary medicine, medicine
15and public health, public health, or health professionals.
AB641,22,1616 3. An accredited center for health sciences.
AB641,22,1817 4. A hospital in which research is conducted. In this subdivision, "hospital" has
18the meaning given in s. 50.33 (2).
AB641,22,25 19(2) Grants and loans. From the appropriations under s. 20.143 (1) (c), (fi), (ie),
20(ig), (io), and (kj), the department may award a grant or loan to a research institution
21to provide money for research and development activities related to the creation or
22retention of jobs by a business, or to improving the competitive position of a business
23by improving the innovativeness of the business. The department may award a
24grant or loan under this section if the research institution applies for a grant or loan
25on a form prepared by the department and all of the following are satisfied:
AB641,23,2
1(a) The department determines that the research and development activities
2are likely to result in an economic benefit to one or more specific businesses.
AB641,23,43 (b) The department determines that the research and development activities
4will be conducted substantially in this state.
AB641,23,65 (c) The department considers the availability of matching funds from the
6research institution, the business, and other sources.
AB641,23,97 (d) The department enters into a written agreement with the research
8institution that specifies the conditions for use of the grant or loan proceeds,
9including reporting and auditing requirements.
AB641,23,11 10(3) Limits. No grant or loan awarded to a research institution under this
11section may exceed $100,000.
AB641, s. 36 12Section 36 . Nonstatutory provisions.
AB641,24,413 (1) Rural outsourcing grants. From the appropriations under section 20.143
14(1) (ie), (ig), (im), and (ir) of the statutes, as affected by this act, the department of
15commerce may award grants during the 2009-11 fiscal biennium to businesses for
16outsourcing work to rural municipalities, as defined under section 560.17 (1) (d) of
17the statutes. The department shall require grantees to obtain funding from sources
18other than the state in an amount at least equal to the amount of the grant. In
19determining whether a grantee has obtained sufficient funding from sources other
20than the state, the department shall credit the grantee's capital expenditures, family
21supporting wages, rent or other facility costs, electricity costs, equipment leases, and
22software expenditures. The total amount of grants awarded under this subsection
23may not exceed $500,000. The department may promulgate rules necessary to
24administer this subsection as emergency rules under section 227.24 of the statutes.
25Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department is not

1required to provide evidence that promulgating a rule under this subsection as an
2emergency rule is necessary for the preservation of public peace, health, safety, or
3welfare and is not required to provide a finding of emergency for a rule promulgated
4under this subsection.
AB641,24,105 (2) High-technology business development corporation grant. In fiscal year
62010-11, the department of commerce shall award to the high-technology business
7development corporation under section 560.27 of the statutes a grant of $100,000
8from the appropriation account under section 20.143 (1) (d) of the statutes, for
9procuring an economic modeling database for the use of regional economic
10development entities.
AB641,24,2311 (3) Manufacturing facility conversion grants. In fiscal year 2010-11, the
12department of commerce shall award grants from the appropriation account under
13section 20.143 (1) (c) of the statutes to provide incentives to companies for converting
14existing unutilized or underutilized manufacturing facilities to the production of
15renewable energy or the manufacturing of equipment used in the production of
16renewable energy. The total amount of grants awarded under this subsection may
17not exceed $2,000,000. The department of commerce may promulgate rules
18necessary to implement this subsection as emergency rules under section 227.24 of
19the statutes. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the
20department is not required to provide evidence that promulgating a rule under this
21subsection as an emergency rule is necessary for the preservation of public peace,
22health, safety, or welfare and is not required to provide a finding of emergency for a
23rule promulgated under this subsection.
AB641,25,224 (4) Grant to Pleasant Prairie Technology Incubator Center.
25Notwithstanding 2009 Wisconsin Act 28, section 9110 (17q), the department of

1commerce shall award the grant required under 2009 Wisconsin Act 28, section 9110
2(17q)
, no later than than 30 days after the effective date of this subsection.
AB641,25,133 (5) Targeted microloans; rules. The department of commerce may
4promulgate emergency rules under section 227.24 of the statutes for the
5establishment and administration of section 560.203 of the statutes, as created by
6this act, for the period before the effective date of any permanent rules promulgated
7under section 560.203 of the statutes, as created by this act, but not to exceed the
8period authorized under section 227.24 (1) (c) and (2) of the statutes.
9Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the department
10is not required to provide evidence that promulgating a rule under this subsection
11as an emergency rule is necessary for the preservation of the public peace, health,
12safety, or welfare and is not required to provide a finding of emergency for a rule
13promulgated under this subsection.
AB641, s. 37 14Section 37. Fiscal changes.
AB641,25,15 15(1) Wisconsin development fund.
AB641,26,216 (a) In the schedule under section 20.005 (3) of the statutes for the appropriation
17to the department of commerce under section 20.143 (1) (c) of the statutes, as affected
18by the acts of 2009, the dollar amount is increased by $500,000 for the first fiscal year
19of the fiscal biennium in which this subsection takes effect to increase funding for the
20purposes for which the appropriation is made. In the schedule under section 20.005
21(3) of the statutes for the appropriation to the department of commerce under section
2220.143 (1) (c) of the statutes, as affected by the acts of 2009, the dollar amount is
23increased by $2,500,000 for the second fiscal year of the fiscal biennium in which this
24subsection takes effect to increase funding for the purposes for which the

1appropriation is made, and to provide funding for grants under Section 36 (3) of this
2act.
AB641,26,73 (b) In the schedule under section 20.005 (3) of the statutes for the appropriation
4to the department of commerce under section 20.143 (1) (c) of the statutes, as affected
5by the acts of 2009, the dollar amount is increased by $500,000 for the second fiscal
6year of the fiscal biennium in which this subsection takes effect to provide funding
7for loans under section 560.203 of the statutes, as created by this act.
AB641,26,14 8(2) High-technology business development corporation grants. In the
9schedule under section 20.005 (3) of the statutes for the appropriation to the
10department of commerce under section 20.143 (1) (d) of the statutes, as affected by
11the acts of 2009, the dollar amount is increased by $200,000 for the second fiscal year
12of the fiscal biennium in which this subsection takes effect to provide funding for the
13grant under section 560.27 (1) (c) of the statutes, as created by this act, and for the
14grant under Section 36 (2) of this act.
AB641,26,2315 (3) Rural outsourcing grants. In the schedule under section 20.005 (3) of the
16statutes for the appropriation to the department of commerce under section 20.143
17(1) (im) of the statutes, as affected by the acts of 2009, the dollar amount is increased
18by $250,000 for the first fiscal year of the fiscal biennium in which this subsection
19takes effect to provide funding for rural outsourcing grants. In the schedule under
20section 20.005 (3) of the statutes for the appropriation to the department of commerce
21under section 20.143 (1) (im) of the statutes, as affected by the acts of 2009, the dollar
22amount is increased by $250,000 for the second fiscal year of the fiscal biennium in
23which this subsection takes effect to provide funding for rural outsourcing grants.
AB641,27,424 (4) Training program grants. In the schedule under section 20.005 (3) of the
25statutes for the appropriation to the technical college system board under section

120.292 (1) (eh) of the statutes, as affected by the acts of 2009, the dollar amount is
2increased by $500,000 for the second fiscal year of the fiscal biennium in which this
3subsection takes effect to increase funding for the purpose for which the
4appropriation is made.
AB641,27,105 (5) Regulatory ombudsman center position. In the schedule under section
620.005 (3) of the statutes for the appropriation to the department of commerce under
7section 20.143 (1) (a) of the statutes, as affected by the acts of 2009, the dollar amount
8is increased by $75,000 for the second fiscal year of the fiscal biennium in which this
9subsection takes effect to increase the authorized FTE positions for the regulatory
10ombudsman center by 1.0 GPR position.
AB641, s. 38 11Section 38. Initial applicability.
AB641,27,1812 (1) Postsecondary education tax credits. The treatment of sections 71.05 (6)
13(a) 15., 71.07 (5r), 71.10 (4) (cd), 71.21 (4), 71.26 (2) (a) 4., 71.28 (5r), 71.30 (3) (cd),
1471.34 (1k) (g), 71.45 (2) (a) 10., 71.47 (5r), 71.49 (1) (cd), and 77.92 (4) of the statutes
15first applies to taxable years beginning on January 1 of the year in which this
16subsection takes effect, except that if this subsection takes effect after July 31 this
17act first applies to taxable years beginning on January 1 of the year following the
18year in which this subsection takes effect.
AB641, s. 39 19Section 39. Effective date.
AB641,27,2120 (1) Emerging technology center. The repeal of sections 20.285 (1) (eg) and
2136.25 (54) of the statutes takes effect on June 30, 2011.
AB641,27,2222 (End)
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