Bills · 2009-2010 Regular Session

SB 409

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.

Introduced, completed
Passes Senate, completed
Passes Assembly, completed
Governor signs, completed
Law, completed

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

This bill creates an income tax and franchise tax credit for businesses that pay

tuition for an individual to attend a university, college, or technical college. Sole

proprietorships, corporations, and insurers may claim the credit. Partnerships,

limited liability companies, and tax-option corporations compute the credit but pass

it on to the partners, members, and shareholders in proportion to their ownership

interests. The credit is an amount equal to: 1) 25 percent of the tuition paid by a

business for an individual to attend school, if the individual is enrolled in a course

of instruction and is eligible for a grant from the Federal Pell Grant Program; and

2) 30 percent of the tuition paid by a business for an individual to attend school, if

the individual is enrolled in a course of instruction that relates to a projected worker

shortage in this state and is eligible for a grant from the Federal Pell Grant Program.

The taxpayer claims the total amount of the tuition paid for the individual for the

taxable year in which the individual graduates from the course of instruction. If the

credit claimed by a business exceeds the business's tax liability, the state will not

issue a refund check, but the business may carry forward any remaining credit to

subsequent taxable years.

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,

What it would cost

Fiscal estimates filed by state agencies, as official PDFs