SB 17

Under this bill, the Wisconsin Economic Development Corporation (WEDC)

may certify a person who makes a qualified investment in a registered community

development financial institution (CDFI) to receive a credit against state income and

franchise taxes, for taxable years beginning after December 31, 2011, and before

January 1, 2014, and against license fees paid by insurers. WEDC may, however,

determine whether or not to extend the credit to taxable years beginning on or after

January 1, 2014. The bill defines a CDFI as an entity that is organized under the

laws of this state and has been certified by the Community Development Financial

Institutions Fund established under federal law (fund) as meeting certain eligibility

requirements. The bill permits WEDC to register a CDFI that applies to WEDC and

complies with annual reporting requirements. The bill defines a "qualified

investment" as a loan or deposit that pays no interest of at least $10,000 that is made

for a minimum of 60 months and over which the CDFI retains complete control for

the duration of the investment period.

WEDC may revoke the registration of a CDFI that fails to comply with annual

reporting requirements or that no longer meets the eligibility requirement for

certification by the fund. WEDC may certify up to $1,000,000 in tax credits in any

calendar year.

A person certified to receive tax credits may claim 10 percent of the person's

qualified investment, if the investment is at least $10,000, but not more than

$150,000, or 12 percent of the person's qualified investment, if the investment is

more than $150,000, but not more than $500,000. If the person withdraws the

qualified investment from the CDFI before the end of the investment period and does

not reinvest the qualified investment in another CDFI, the person must repay a

portion of the credit amounts that the person received by adding the portion to the

person's tax or fee liability in a subsequent year. However, the portion that the

person must repay depends on when the person withdraws the investment during

the investment period. The portion that the person must repay decreases the longer

the person holds the investment during the investment period.