LRB-0034/1
JK&CTS:jld:rs
2009 - 2010 LEGISLATURE
February 20, 2009 - Introduced by Representatives Strachota, Fields, Knodl,
Ripp, Barca, Spanbauer, Berceau, Brooks, Vos, Van Roy, Honadel, Zipperer,
Suder, Murtha, Davis, Roth, Nygren, A. Ott, Newcomer, Pridemore,
Townsend, LeMahieu and
Gunderson, cosponsored by Senators Kanavas,
Hopper, Leibham, Kedzie, Erpenbach, Olsen, Harsdorf and Plale. Referred
to Committee on Jobs, the Economy and Small Business.
AB77,1,3
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. and 560.205 (3) (d) of the statutes;
relating to: increasing the amount of
3the early stage seed and angel investment credits.
Analysis by the Legislative Reference Bureau
Under current law, a person may claim an early stage seed investment income
and franchise tax credit in an amount equal to 25 percent of the person's initial
investment paid to a fund manager that the fund manager invests in a business that
is certified by the Department of Commerce (Commerce) to receive such investments.
The total amount of all credits that may be claimed in any calendar year after 2007
is $6,000,000 and the total amount that may be claimed in all taxable years is
$52,500,000. Under this bill, the total amount of all early stage seed investment
credits that may be claimed in any calendar year after 2008 is $10,225,000 and the
total amount that may be claimed in all taxable years is $102,250,000.
Under current law, an individual may claim an income tax credit in each
taxable year for two years, beginning with the taxable year certified by Commerce,
in an amount equal to 12.5 percent of the individual's bona fide angel investment in
a new business venture. The total amount of all credits that may be claimed in any
calendar year after 2007 is $5,500,000 and the total amount that may be claimed in
all taxable years is $47,500,000. Under this bill, the total amount of all bona fide
angel investment credits that may be claimed in any calendar year after 2008 is
$8,775,000 and the total amount that may be claimed in all taxable years is
$87,750,000.
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:
AB77, s. 1
1Section
1. 71.07 (5b) (c) 1. of the statutes is amended to read:
AB77,2,42
71.07
(5b) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of
3the credits that may be claimed under this subsection and ss. 71.28 (5b) and 71.47
4(5b) for all taxable years combined is
$52,500,000
$102,250,000.
AB77, s. 2
5Section
2. 71.07 (5d) (c) 1. of the statutes is amended to read:
AB77,2,86
71.07
(5d) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of
7the credits that may be claimed under this subsection for all taxable years combined
8is
$47,500,000 $87,750,000.
AB77, s. 3
9Section
3. 71.28 (5b) (c) 1. of the statutes is amended to read:
AB77,2,1210
71.28
(5b) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of
11the credits that may be claimed under this subsection and ss. 71.07 (5b) and 71.47
12(5b) for all taxable years combined is
$52,500,000
$102,250,000.
AB77, s. 4
13Section
4. 71.47 (5b) (c) 1. of the statutes is amended to read:
AB77,2,1614
71.47
(5b) (c) 1. Except as provided in s. 73.03 (63), the maximum amount of
15the credits that may be claimed under this subsection and ss. 71.07 (5b) and 71.28
16(5b) for all taxable years combined is
$52,500,000
$102,250,000.
AB77, s. 5
17Section
5. 560.205 (3) (d) of the statutes is amended to read:
AB77,3,1418
560.205
(3) (d)
Rules. The department of commerce, in consultation with the
19department of revenue, shall promulgate rules to administer this section. The rules
20shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
21The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may
1be claimed for investments in businesses certified under sub. (1) at $3,000,000 per
2calendar year for calendar years beginning after December 31, 2004,
and $5,500,000
3per calendar year for calendar years beginning after December 31, 2007
, and
4$8,775,000 per calendar year for calendar years beginning after December 31, 2008.
5The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b),
671.28 (5b), and 71.47 (5b) that may be claimed for investments paid to fund managers
7certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning
8after December 31, 2004,
and $6,000,000 per calendar year for calendar years
9beginning after December 31, 2007
, and $10,225,000 per calendar year for calendar
10years beginning after December 31, 2008. The rules shall also provide that, for
11calendar years beginning after December 31, 2007, no person may receive a credit
12under ss. 71.07 (5b) and (5d), 71.28 (5b), or 71.47 (5b) unless the person's investment
13is kept in a certified business, or with a certified fund manager, for no less than 3
14years.
AB77,3,1916
(1) This act first applies to taxable years beginning on January 1 of the year
17in which this subsection takes effect, except that if this subsection takes effect after
18July 31 this act first applies to taxable years beginning on January 1 of the year
19following the year in which this subsection takes effect.
