SB 122

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.