A postsecondary education tax credit for businesses; increasing annual limits on angel investment tax credits; awarding grants to the WiSys Technology Foundation, Inc.; business plan competitions and an emerging technology center in the University of Wisconsin System; rural outsourcing grants; requiring the Department of Commerce to award grants to a high-technology business development corporation and grants for converting manufacturing facilities; increasing funding for certain economic development programs; a pilot program providing microloans for the creation of new businesses; increasing funding for certain technical college training program grants; providing an exemption from emergency rule procedures; granting rule-making authority; and making appropriations

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 the Department of Commerce (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 bona fide angel investment credits that may be claimed in a calendar year beginning after 2007 but before 2011 is $5,500,000 and the total amount that may be claimed in any calendar year beginning after 2010 is $18,000,000. Under the bill, the total amount of all bona fide angel investment credits that may be claimed in 2010 is $6,500,000, and the total amount that may be claimed in a calendar year beginning after 2010 is $20,000,000.

Under current law, a taxpayer may claim an early stage seed investment tax credit for 25 percent of the amount that the taxpayer pays to a fund manager that the fund manager invests with certain businesses that are certified by Commerce to receive investments. The total amount of all early stage seed investment credits that may be claimed in a calendar year beginning after 2007 but before 2011 is $6,000,000 and the total amount that may be claimed in any calendar year beginning after 2010 is $18,500,000. Under the bill, the total amount of all early stage seed investment credits that may be claimed in 2010 is $8,000,000, and the total amount that may be claimed in any calendar year beginning after 2010 is $20,500,000 The bill directs the Board of Regents of the University of Wisconsin (UW) System to award to the WiSys Technology Foundation, Inc. (foundation), grants for the Wisconsin Small Company Advancement program to provide intellectual property management services to UW System two-year and four-year schools, other than the UW-Madison and the UW-Milwaukee. Each grant must be for $250,000, but the Board of Regents may award a grant only if the foundation shows that it has secured matching funds for the program from sources other than the state. The bill provides for a maximum number of eight grants.

The bill appropriates $125,000 annually to the Board of Regents of the UW System to support a business plan competition program existing on the effective date of bill at two-year and four-year schools, except for the UW-Madison, that makes entrepreneurial expertise available to students and that has ties to campus-based business plan contests and national organizations that foster student entrepreneurism. The bill also appropriates $400,000 during the 2009-11 fiscal biennium to the Board of Regents to develop an emerging technology center at the UW-La Crosse. The bill prohibits the Board of Regents from spending moneys under either appropriation unless it receives matching funds from private contributions.

Beginning in the 2010-11 school year, the bill requires the Technical College System Board (system board) to award at least $1,500,000 annually to technical college district boards for advanced manufacturing skills training. Under current law, the system board must award at least $1,000,000 annually for such training, with the same priority. The bill authorizes Commerce to award grants in the 2009-11 fiscal biennium to businesses for outsourcing work to rural municipalities in this state. Grants under the bill are funded by repayments of grants and loans under a number of economic development programs. Under the bill, Commerce must require grantees to obtain funding from sources other than the state in an amount at least equal to the amount of the grant. The total amount of grants awarded under the bill may not exceed $500,000.

Under current law, Commerce assists in maintaining a high-technology business development corporation, for promoting and supporting the creation, development, and retention of science-based and technology-based businesses in the state.

The bill requires Commerce to award to the corporation an annual grant of $100,000 for employing a grant writer to assist businesses to apply for certain federal small business grants, beginning in fiscal year 2010-11. The bill also requires Commerce to award the corporation a one-time grant of $100,000 in fiscal year 2010-11 for an economic modeling database for use by regional economic development entities. The bill increases a current appropriation of general purpose revenue to Commerce by $200,000 in fiscal year 2010-11 to fund the grants.

The Wisconsin Development Fund (development fund) is a biennial appropriation of general purpose revenues to Commerce. Currently, the development fund provides moneys for grants to Center for Advanced Technology and Innovation; for technology commercialization grants and loans; for grants and loans to support capital financing, worker training, entrepreneurial development, and other economic development projects; and for reimbursements under the Wisconsin trade project program.

The bill increases the appropriation by $3,000,000 for the 2009-11 fiscal biennium. The bill also requires Commerce to award grants from the development fund in fiscal year 2010-11 to businesses for converting existing unutilized or underutilized manufacturing facilities to the production of renewable energy or the manufacturing of equipment used in the production of renewable energy. The total amount of grants awarded may not exceed $2,000,000.

This bill also establishes a technology transfer grant and loan program in Commerce. Under the program, Commerce may award a grant or loan of up to $100,000 to a research institution to pay for research and development activities that will result in the creation or retention of jobs in this state or that will improve the competitive position of a business in this state by improving the innovativeness of the business. The bill defines a "research institution" as any of the following located in this state: an accredited college; university; school of medicine, dentistry, veterinary medicine, medicine and public health, public health, or health professionals; a center for health sciences; or a hospital in which research is conducted. Grants and loans under the program are funded from existing economic development programs, including the Forward Innovation Fund and the development fund.

The bill directs Commerce to establish a pilot program of making loans of not more than $25,000 at nominal interest rates for the creation of new businesses.

Under the bill, Commerce must designate two areas of the state, one urban and one rural, that are affected by high unemployment and must make the loans only to residents of the areas. Commerce must partner with federal, state, regional, and local economic development entities to provide business training for applicants and borrowers. The bill appropriates $500,000 to Commerce in fiscal 2010-11 for the loans. Commerce may not make loans under the program after July 31, 2013.

Current law requires Commerce to award a $70,000 grant to Pleasant Prairie Technology Incubator Center no later than July 31, 2011. The bill requires Commerce to award the grant no later than 30 days after the effective date of the bill.

In addition, the bill increases funding for Commerce by $75,000 in fiscal 2010-11 in order to fund a position for Commerce's Regulatory Ombudsman Center.