LRB-2067/2
MDK/JK/MPG:wlj/jld:md
2011 - 2012 LEGISLATURE
June 3, 2011 - Introduced by Senators Lassa, C. Larson, Taylor, Holperin, Miller
and Erpenbach, cosponsored by Representatives Pasch, Jorgensen, Roys,
Barca, Staskunas, Turner, Berceau, Seidel, Ringhand
and Steinbrink.
Referred to Committee on Economic Development and Veterans and Military
Affairs.
SB122,1,11 1An Act to amend 20.285 (1) (cd), 36.25 (52) (c), 71.07 (5b) (d) 1., 71.07 (5d) (d)
22., 71.10 (4) (gwb), 71.10 (4) (gx), 71.10 (4) (i), 71.28 (5b) (d) 1., 71.30 (3) (eop),
371.30 (3) (f), 71.47 (5b) (d) 1., 71.49 (1) (eop) and 71.49 (1) (f); and to create
420.835 (2) (ba), 71.07 (5b) (d) 1m., 71.07 (5b) (d) 4., 71.07 (5d) (d) 2m., 71.07 (5d)
5(d) 5., 71.28 (5b) (d) 1m., 71.28 (5b) (d) 4., 71.47 (5b) (d) 1m., 71.47 (5b) (d) 4. and
6238.27 of the statutes; relating to: the Wisconsin Small Company
7Advancement program, requiring the Wisconsin Economic Development
8Corporation to issue bonds and notes to raise capital for investment by venture
9capital funds in Wisconsin businesses, allowing refunds for the early stage seed
10and angel investment tax credits, authorizing positions for the University of
11Wisconsin, and making appropriations.
Analysis by the Legislative Reference Bureau
Under current law, a taxpayer may claim early stage seed and angel investment
income and franchise tax credits for the taxpayer's investments in qualified new
businesses. If the credit amounts exceed the taxpayer's tax liability, the taxpayer
does not receive a refund, but, instead, may apply the amount of the unused credits

to subsequent taxable years. Under this bill, if the credit amounts exceed the
taxpayer's tax liability, the taxpayer receives a refund.
Current law requires the Board of Regents (board) of the University of
Wisconsin (UW) System to make grants to the WiSys Technology Foundation, Inc.
(foundation), for the Wisconsin Small Company Advancement program (program) to
provide intellectual property management services to UW-Extension and all
institutions and college campuses, except for UW-Madison and UW-Milwaukee.
The amount of each grant must be $250,000, but the board may make a grant only
if the foundation secures matching funds from sources other than the state. Current
law appropriates a sum sufficient not to exceed $2,000,000 for the grants, as well as
for certain administrative costs. This bill changes the appropriation to a sum certain
appropriation, and appropriates $1,400,000 in fiscal year 2011-12 and $1,400,000
in fiscal year 2012-13 for the grants and administrative costs.
The bill authorizes faculty, academic advisor, and support staff positions at the
UW-Milwaukee School of Public Health and the UW-Milwaukee School of
Freshwater Sciences beginning in fiscal year 2012-13, and authorizes faculty
positions at the UW-Madison Institute for Discovery beginning on the bill's effective
date.
The bill also requires the Wisconsin Economic Development Corporation
(corporation) to issue bonds and notes to raise not more than $100,000,000 for
investment in Wisconsin businesses on behalf of the corporation by up to ten venture
capital funds. The corporation must provide the capital to venture capital funds that
agree to invest the capital on behalf of the corporation in Wisconsin businesses in
various industry sectors and in different stages of development; to require a business
in which the capital is to be invested to raise funds from sources other than the state
or the corporation in an amount equal to four times the amount of capital to be
invested on behalf of the corporation; and to maintain offices, staff, and investment
in this state.
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:
SB122, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
SB122, s. 2 1Section 2. 20.285 (1) (cd) of the statutes is repealed.
SB122, s. 3 2Section 3. 20.285 (1) (ce) of the statutes is created to read:
SB122,3,43 20.285 (1) (ce) WiSys Technology Foundation grants. The amounts in the
4schedule for grants to the WiSys Technology Foundation, Inc., under s. 36.25 (52) (b).
SB122, s. 4 5Section 4. 20.835 (2) (ba) of the statutes is created to read:
SB122,3,86 20.835 (2) (ba) Early stage seed and angel investment credits. A sum sufficient
7to make the payments under ss. 71.07 (5b) (d) 4. and (5d) (d) 5., 71.28 (5b) (d) 4., and
871.47 (5b) (d) 4.
SB122, s. 5 9Section 5. 36.25 (52) (b) of the statutes is amended to read:
SB122,4,510 36.25 (52) (b) From the appropriation under s. 20.285 (1) (cd) (ce), the board
11shall award grants to the foundation for the Wisconsin Small Company
12Advancement program to provide intellectual property management services to the
13extension and all institutions and college campuses other than the University of
14Wisconsin-Madison and the University of Wisconsin-Milwaukee and for the
15administrative costs of the program. The amount of each grant shall be $250,000.
16The foundation may use no more than $75,000 of the amount appropriated under s.
1720.285 (1) (cd) (ce) for the administrative costs of the program. The board may not
18award a grant unless the foundation shows to the satisfaction of the board that the

1foundation has secured, after January 1, 2010, matching funds for the program from
2sources other than the state that are equal to the amount of the grant, except that
3the amounts used for administrative costs of the program are exempt from the
4matching requirement. In-kind contributions may be applied to meet the matching
5requirement.
SB122, s. 6 6Section 6. 36.25 (52) (c) of the statutes is amended to read:
SB122,4,117 36.25 (52) (c) The board shall submit progress reports at least annually on the
8use of grants under par. (b) to the joint committee on finance and the chief clerk of
9each house of the legislature for distribution to the appropriate standing committees
10under s. 13.172 (3), at least annually until the program funded by the grants under
11par. (b) is terminated
.
SB122, s. 7 12Section 7. 71.07 (5b) (d) 1. of the statutes is amended to read:
SB122,4,1513 71.07 (5b) (d) 1. Section For taxable years beginning before January 1, 2011,
14s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
15under this subsection.
SB122, s. 8 16Section 8. 71.07 (5b) (d) 1m. of the statutes is created to read:
SB122,4,1917 71.07 (5b) (d) 1m. For taxable years beginning after December 31, 2010, s.
1871.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
19credit under this subsection.
SB122, s. 9 20Section 9. 71.07 (5b) (d) 4. of the statutes is created to read:
SB122,5,221 71.07 (5b) (d) 4. For taxable years beginning after December 31, 2010, if the
22allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
2371.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified
24by the department of revenue to the department of administration for payment by

1check, share draft, or other draft drawn from the appropriation account under s.
220.835 (2) (ba).
SB122, s. 10 3Section 10. 71.07 (5d) (d) 2. of the statutes is amended to read:
SB122,5,64 71.07 (5d) (d) 2. Section For taxable years beginning before January 1, 2011,
5s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
6under this subsection.
SB122, s. 11 7Section 11. 71.07 (5d) (d) 2m. of the statutes is created to read:
SB122,5,108 71.07 (5d) (d) 2m. For taxable years beginning after December 31, 2010, s.
971.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
10credit under this subsection.
SB122, s. 12 11Section 12. 71.07 (5d) (d) 5. of the statutes is created to read:
SB122,5,1712 71.07 (5d) (d) 5. For taxable years beginning after December 31, 2010, if the
13allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
1471.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified
15by the department of revenue to the department of administration for payment by
16check, share draft, or other draft drawn from the appropriation account under s.
1720.835 (2) (ba).
SB122, s. 13 18Section 13. 71.10 (4) (gwb) of the statutes is amended to read:
SB122,5,2019 71.10 (4) (gwb) Early stage seed investment credit under s. 71.07 (5b), except
20as provided under par. (i)
.
SB122, s. 14 21Section 14. 71.10 (4) (gx) of the statutes is amended to read:
SB122,5,2322 71.10 (4) (gx) Angel investment credit under s. 71.07 (5d), except as provided
23under par. (i)
.
SB122, s. 15 24Section 15. 71.10 (4) (i) of the statutes is amended to read:
SB122,6,14
171.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
2preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
3beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
4credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
571.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
6credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
771.07 (3rm), food processing plant and food warehouse investment credit under s.
871.07 (3rn), early stage seed investment credit under s. 71.07 (5b) (d) 4., angel
9investment credit under s. 71.07 (5d) (d) 5.,
film production services credit under s.
1071.07 (5f), film production company investment credit under s. 71.07 (5h), veterans
11and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs
12credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under
13s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments
14under s. 71.09, and taxes withheld under subch. X.
SB122, s. 16 15Section 16. 71.28 (5b) (d) 1. of the statutes is amended to read:
SB122,6,1816 71.28 (5b) (d) 1. Subsection For taxable years beginning before January 1,
172011, sub.
(4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit
18under this subsection.
SB122, s. 17 19Section 17. 71.28 (5b) (d) 1m. of the statutes is created to read:
SB122,6,2220 71.28 (5b) (d) 1m. For taxable years beginning after December 31, 2010, sub.
21(4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under
22this subsection.
SB122, s. 18 23Section 18. 71.28 (5b) (d) 4. of the statutes is created to read:
SB122,7,424 71.28 (5b) (d) 4. For taxable years beginning after December 31, 2010, if the
25allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.

171.23, the amount of the claim not used to offset the tax due shall be certified by the
2department of revenue to the department of administration for payment by check,
3share draft, or other draft drawn from the appropriation account under s. 20.835 (2)
4(ba).
SB122, s. 19 5Section 19. 71.30 (3) (eop) of the statutes is amended to read:
SB122,7,76 71.30 (3) (eop) Early stage seed investment credit under s. 71.28 (5b), except
7as provided under par. (f)
.
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