SB94,30,168 (c) Limitations. Partnerships, limited liability companies, and tax-option
9corporations may not claim the credit under this subsection, but the eligibility for,
10and the amount of, the credit are based on their purchase of bonds issued under s.
11239.11 (2) for which a credit has been awarded under s. 239.14. A partnership,
12limited liability company, or tax-option corporation shall compute the amount of
13credit that each of its partners, members, or shareholders may claim and shall
14provide that information to each of them. Partners, members of limited liability
15companies, and shareholders of tax-option corporations may claim the credit in
16proportion to their ownership interests.
SB94,30,2217 (d) Carry-forward. 1. If a credit computed under this subsection is not entirely
18offset against Wisconsin income or franchise taxes otherwise due, the unused
19balance may be carried forward and credited against Wisconsin income or franchise
20taxes otherwise due for the following taxable years to the extent not offset by these
21taxes otherwise due in all intervening years between the year in which the expense
22was incurred and the year in which the carry-forward credit is claimed.
SB94,30,2423 2. The amount of the carry-forward computed under subd. 1. shall be reduced
24by the amount of any credit transferred under par. (e).
SB94,31,8
1(e) Sale of credit. A person who is awarded a credit under s. 239.14, or to whom
2a credit is transferred as provided under this paragraph, may sell or otherwise
3transfer the credit to another person who is subject to the tax imposed under s. 71.02,
471.23, or 71.43 if the person notifies the department of revenue and the Wisconsin
5Venture Capital Authority created under ch. 239 of the transfer and includes with
6the notification a copy of the transfer documents. No credit may be sold or
7transferred under this paragraph until 180 days after the date on which the person
8becomes eligible to claim the credit.
SB94,31,109 (f) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit
10under s. 71.28 (4), applies to the credit under this subsection.
SB94,31,1111 2. The department shall promulgate rules to administer this subsection.
SB94, s. 57 12Section 57. 71.49 (1) (dn) of the statutes is created to read:
SB94,31,1313 71.49 (1) (dn) Badger jobs fund bonds credit under s. 71.47 (8s).
SB94, s. 58 14Section 58. 73.033 of the statutes is created to read:
SB94,31,20 1573.033 Jobs now fund and badger jobs fund investments; withholding
16tax determinations.
(1) (a) The department of revenue, in consultation with the
17Wisconsin Venture Capital Authority created under ch. 239, shall determine the
18amount of the withholding taxes under subch. X of ch. 71 paid by each business that
19receives an investment under s. 239.13 (2) for the year prior to the first year in which
20each business receives the investment.
SB94,32,321 (b) Each year, for 15 years following the first year in which a business receives
22an investment under s. 239.13 (2), the department shall credit to the appropriation
23account under s. 20.195 (1) (g) an amount equal to 50 percent of the increase, if any,
24in withholding taxes under subch. X of ch. 71 paid by all businesses that receive
25investments under s. 239.13 (2) over the amount determined for all such businesses

1under par. (a). The department shall credit the amounts determined under this
2subsection on a quarterly basis based on its estimate of the total annual increase in
3the withholding taxes described in this subsection.
SB94,32,8 4(2) (a) The department of revenue, in consultation with the Wisconsin Venture
5Capital Authority created under ch. 239, shall determine the amount of the
6withholding taxes under subch. X of ch. 71 paid by each business that receives an
7investment under s. 239.23 (2) for the year prior to the first year in which each
8business receives the investment.
SB94,32,169 (b) Each year, for 15 years following the first year in which a business receives
10an investment under s. 239.23 (2), the department shall credit to the appropriation
11account under s. 20.195 (1) (g) an amount equal to 50 percent of the increase, if any,
12in withholding taxes under subch. X of ch. 71 paid by all businesses that receive
13investments under s. 239.23 (2) over the amount determined for all such businesses
14under par. (a). The department shall credit the amounts determined under this
15subsection on a quarterly basis based on its estimate of the total annual increase in
16the withholding taxes described in this subsection.
SB94, s. 59 17Section 59. 76.634 of the statutes is created to read:
SB94,32,19 1876.634 Credit for jobs now fund investments. (1) Definitions. In this
19section:
SB94,32,2020 (a) "Allocation date" has the meaning given in s. 239.20 (2).
SB94,32,2121 (b) "Certified jobs now fund" has the meaning given in s. 239.20 (3).
SB94,32,2222 (c) "Designated capital" has the meaning given in s. 239.20 (4).
SB94,33,3 23(2) Credit. Subject to the limitations provided in this section and s. 239.22, for
24taxable years beginning after December 31, 2013, an insurer who makes an
25investment of designated capital and who has been awarded a credit under s. 239.22

1(2) (a), may claim as a credit against the fees imposed under s. 76.60, 76.63, 76.65,
276.66, or 76.67, up to the amount of such fees, the amount determined under s. 239.22
3(2) (b).
SB94,33,9 4(3) Carry-forward. If the credit under sub. (2) is not entirely offset against the
5fees under s. 76.60, 76.63, 76.65, 76.66 or 76.67 otherwise due, the unused balance
6may be carried forward and credited against those fees in the following years to the
7extent that it is not offset by those fees otherwise due in all the years between the
8year in which the initial credit is claimed and the year in which the carry-forward
9credit is claimed.
SB94,33,17 10(4) Recapture. If a certified jobs now fund in which the insurer's designated
11capital has been invested is decertified under s. 239.26 (2) (b) and the jobs now fund
12has not made the investments required under s. 239.23 (4) (a) and (b) within 4 years
13after the allocation date for the insurer's investment, any insurer that has received
14a credit under this section with the same allocation date with respect to such
15decertified jobs now fund shall repay the credit amount to the commissioner of
16insurance, for deposit into the general fund, and may not claim any more credits
17under this section with respect to the decertified jobs now fund.
SB94,34,3 18(5) Sale of credit. An insurer who is awarded a credit under s. 239.22 (2) (a),
19or to whom a credit is sold or transferred as provided under this subsection, may sell
20or otherwise transfer the credit to another insurer who is subject to the fees imposed
21under s. 76.60, 76.63, 76.65, 76.66, or 76.67 if the insurer notifies the commissioner
22of insurance and the Wisconsin Venture Capital Authority created under ch. 239 of
23the sale or transfer and includes with the notification a copy of the sale or transfer
24documents. If a credit that has been sold or transferred under this subsection is
25subject to recapture under sub. (4), the person who claimed the credit is liable for the

1repayment provided under sub. (4). No credit may be sold or transferred under this
2subsection until 180 days after the date on which the person becomes eligible to claim
3the credit.
SB94, s. 60 4Section 60. 76.67 (2) of the statutes is amended to read:
SB94,34,145 76.67 (2) If any domestic insurer is licensed to transact insurance business in
6another state, this state may not require similar insurers domiciled in that other
7state to pay taxes greater in the aggregate than the aggregate amount of taxes that
8a domestic insurer is required to pay to that other state for the same year less the
9credits under ss. 76.634, 76.635, 76.636, 76.637, 76.638, and 76.655, except that the
10amount imposed shall not be less than the total of the amounts due under ss. 76.65
11(2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums,
12as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss.
1376.634, 76.635, 76.636, 76.637, 76.638, and 76.655 against that total, and except that
14the amount imposed shall not be less than the amount due under s. 601.93.
SB94, s. 61 15Section 61. 77.54 (9a) (a) of the statutes, as affected by 2011 Wisconsin Act 10,
16is amended to read:
SB94,34,2117 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin
18Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health
19Insurance Risk-Sharing Plan Authority, the Wisconsin Economic Development
20Corporation, the Wisconsin Venture Capital Authority, and the Fox River
21Navigational System Authority.
SB94, s. 62 22Section 62. 77.92 (4) of the statutes is amended to read:
SB94,35,1323 77.92 (4) "Net business income," with respect to a partnership, means taxable
24income as calculated under section 703 of the Internal Revenue Code; plus the items
25of income and gain under section 702 of the Internal Revenue Code, including taxable

1state and municipal bond interest and excluding nontaxable interest income or
2dividend income from federal government obligations; minus the items of loss and
3deduction under section 702 of the Internal Revenue Code, except items that are not
4deductible under s. 71.21; plus guaranteed payments to partners under section 707
5(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
6(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
7(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r),
8and (8s)
; and plus or minus, as appropriate, transitional adjustments, depreciation
9differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
10excluding income, gain, loss, and deductions from farming. "Net business income,"
11with respect to a natural person, estate, or trust, means profit from a trade or
12business for federal income tax purposes and includes net income derived as an
13employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB94, s. 63 14Section 63. 100.45 (1) (dm) of the statutes, as affected by 2011 Wisconsin Act
1510
, is amended to read:
SB94,35,2516 100.45 (1) (dm) "State agency" means any office, department, agency,
17institution of higher education, association, society, or other body in state
18government created or authorized to be created by the constitution or any law which
19is entitled to expend moneys appropriated by law, including the legislature and the
20courts, the Wisconsin Housing and Economic Development Authority, the Bradley
21Center Sports and Entertainment Corporation, the University of Wisconsin
22Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities
23Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic
24Development Corporation, the Wisconsin Venture Capital Authority, and the Fox
25River Navigational System Authority.
SB94, s. 64
1Section 64. 101.177 (1) (d) of the statutes, as affected by 2011 Wisconsin Act
210
, is amended to read:
SB94,36,133 101.177 (1) (d) "State agency" means any office, department, agency,
4institution of higher education, association, society, or other body in state
5government created or authorized to be created by the constitution or any law, that
6is entitled to expend moneys appropriated by law, including the legislature and the
7courts, the Wisconsin Housing and Economic Development Authority, the Bradley
8Center Sports and Entertainment Corporation, the University of Wisconsin
9Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin
10Economic Development Corporation, the Wisconsin Venture Capital Authority, and
11the Wisconsin Health and Educational Facilities Authority, but excluding the Health
12Insurance Risk-Sharing Plan Authority and the Lower Fox River Remediation
13Authority.
SB94, s. 65 14Section 65. 230.03 (3) of the statutes, as affected by 2011 Wisconsin Act 10,
15is amended to read:
SB94,36,2516 230.03 (3) "Agency" means any board, commission, committee, council, or
17department in state government or a unit thereof created by the constitution or
18statutes if such board, commission, committee, council, department, unit, or the
19head thereof, is authorized to appoint subordinate staff by the constitution or
20statute, except a legislative or judicial board, commission, committee, council,
21department, or unit thereof or an authority created under subch. II of ch. 114 or
22subch. III of ch. 149 or under ch. 231, 232, 233, 234, 235, 237, 238, 239, or 279.
23"Agency" does not mean any local unit of government or body within one or more local
24units of government that is created by law or by action of one or more local units of
25government.
SB94, s. 66
1Section 66. Chapter 239 of the statutes is created to read:
SB94,37,42 Chapter 239
3 WISCONSIN VENTURE CAPITAL
4 AUTHORITY
SB94,37,65 Subchapter I
6 General provisions
SB94,37,7 7239.01 Definitions. In this chapter, except as otherwise provided:
SB94,37,8 8(1) "Authority" means the Wisconsin Venture Capital Authority.
SB94,37,9 9(2) "Board" means the board of directors of the authority.
SB94,37,12 10239.02 Creation and organization of authority. (1) There is created a
11public body corporate and politic to be known as the "Wisconsin Venture Capital
12Authority." The members of the board shall consist of the following:
SB94,37,1413 (a) The chief executive officer of the Wisconsin Economic Development
14Corporation.
SB94,37,1715 (b) Four persons from the private sector, at least 3 of whom shall have venture
16capital, investment banking, or substantial entrepreneurial experience, nominated
17by the governor and appointed with the advice and consent of the senate.
SB94,37,1918 (c) One member appointed by the speaker of the assembly who shall have
19venture capital, investment banking, or substantial entrepreneurial experience.
SB94,37,2120 (d) One member appointed by the senate majority leader who shall have
21venture capital, investment banking, or substantial entrepreneurial experience.
SB94,37,23 22(2) The members of the board appointed by the governor, the speaker of the
23assembly, and the senate majority leader shall serve 3-year terms.
SB94,38,2 24(3) A majority of the members of the board constitutes a quorum for the purpose
25of conducting its business and exercising its powers and for all other purposes,

1notwithstanding the existence of any vacancies. Action may be taken by the board
2upon a vote of a majority of the members present.
SB94,38,4 3(4) A vacancy on the board shall be filled in the same manner as the original
4appointment to the board for the remainder of the unexpired term, if any.
SB94,38,7 5(5) A member of the board may not be compensated for the member's services
6but shall be reimbursed for actual and necessary expenses, including travel
7expenses, incurred in the performance of the member's duties.
SB94,38,11 8(6) No cause of action may arise against and no civil liability may be imposed
9upon a member of the board for any act or omission in the performance of the
10member's powers and duties under this chapter, unless the person asserting liability
11proves that the act or omission constitutes willful misconduct.
SB94,38,13 12(7) Annually, the governor shall appoint one member as chairperson of the
13board.
SB94,38,18 14(8) The board may hire an executive director. The board may delegate to the
15executive director or any other employee of the authority any powers or duties the
16board considers proper. All powers and duties assigned to the authority under this
17chapter shall be exercised or carried out by the board, unless the board delegates the
18power or duty to an employee of the authority.
SB94,38,22 19239.03 Powers of authority. The authority shall have all the powers
20necessary or convenient to carry out the purposes and provisions of this chapter. In
21addition to all other powers granted the authority under this chapter, the authority
22may specifically:
SB94,38,24 23(1) Adopt, amend, and repeal any bylaws, policies, and procedures for the
24regulation of its affairs and the conduct of its business.
SB94,38,25 25(2) Have a seal and alter the seal at pleasure.
SB94,39,1
1(3) Maintain an office.
SB94,39,2 2(4) Sue and be sued.
SB94,39,4 3(5) Accept gifts, grants, loans, or other contributions from private or public
4sources.
SB94,39,6 5(6) Establish the annual budget of the authority and monitor its fiscal
6management.
SB94,39,9 7(7) Execute contracts and other instruments required for the operation of the
8authority, including contracts with the Wisconsin Economic Development
9Corporation.
SB94,39,11 10(8) Employ any officers, agents, and employees that it may require and
11determine their qualifications, duties, and compensation.
SB94,39,12 12(9) Issue notes, bonds, and any other obligations.
SB94,39,13 13(10) Make loans and provide grants.
SB94,39,14 14(11) Incur debt.
SB94,39,15 15(12) Procure liability insurance.
SB94,39,19 16239.04 Liability limited. Neither the state nor any political subdivision of
17the state, nor any officer, employee, or agent of the state or a political subdivision of
18the state who is acting within the scope of employment or agency, is liable for any
19debt, obligation, act, or omission of the authority.
SB94,39,23 20239.05 Annual report. Annually, the authority shall submit to the chief clerk
21of each house of the legislature, for distribution to the legislature under s. 13.172 (2),
22and to the governor, a report on the programs administered by the authority that
23includes all of the following:
SB94,39,25 24(1) General reporting requirements. For each program administered by the
25authority, the report shall include all of the following:
SB94,40,1
1(a) An assessment of the program's success to date.
SB94,40,32 (b) An accounting of the financial status of the program, including the opinion
3of an independent certified public accountant.
SB94,40,44 (c) Any recommendations the authority has for improvement of the program.
SB94,40,7 5(2) Badger jobs fund. In addition to the information provided under sub. (1),
6the authority's annual report shall include all of the following for the badger jobs
7fund administered by the authority under subch. II:
SB94,40,88 (a) The current investment policy of the badger jobs fund.
SB94,40,109 (b) The badger jobs fund's internal rate of return from its investments in
10certified investors.
SB94,40,1211 (c) An accounting of the revenue received by the authority under s. 73.033 (1)
12(b).
SB94,40,1413 (d) An accounting of any compensation, including a management fee, paid to
14the fund manager during the preceding year.
SB94,40,1815 (e) An accounting of the value of tax credits awarded to creditors of the badger
16jobs fund under s. 239.14 during the preceding year, including a description of the
17circumstances leading to the award of the credits and the likelihood that the
18authority will award additional tax credits to fund creditors in the future.
SB94,40,2119 (f) For each certified investor in whom the badger jobs fund invested capital
20under s. 239.13 (2) during the preceding year, the name and address of the investor
21and the amount of each investment.
SB94,40,2222 (g) The internal rate of return realized by each certified investor.
SB94,40,2423 (h) An accounting of any fee each certified investor paid to itself or any principal
24or manager of the certified investor during the preceding year.
SB94,41,7
1(i) For each business in which a certified investor held an investment of capital
2from the badger jobs fund during the preceding year, the name and address of the
3business and a description of the nature of the business; the amount of each
4investment in the business; an identification of the certified investor who made the
5investment; and a statement of the number of employees the business employed
6when the certified investor first invested in the business and the number of
7employees the business employed on December 31 of the preceding year.
SB94,41,10 8(3) Certified jobs now fund program. In addition to the information provided
9under sub. (1), the authority's annual report shall include all of the following for the
10certified jobs now fund program under subch. III:
SB94,41,1111 (a) The information required under s. 239.25 (2).
SB94,41,1312 (b) An accounting of the value of each tax credit the authority awarded under
13s. 239.22 (2) during the preceding year.
SB94,41,1514 (c) An accounting of the revenue received by the authority under s. 73.033 (2)
15(b).
SB94,41,1716 (d) An accounting of each profit sharing fee paid to the authority under s.
17239.24 (2) during the preceding year.
SB94,41,2018 (e) A list of certified jobs now funds that the authority decertified under s.
19239.26 (2) during the preceding year and a description of the circumstances leading
20to each decertification.
SB94,41,2121 subchapter II
SB94,41,2222 Badger jobs fund
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