AB 640

Innovation fund

This bill creates a nonlapsible fund to be known as the “innovation fund" (fund).

From the interest earnings of the fund, the Wisconsin Economic Development

Corporation may make grants, and payments under certain contracts, as set forth

below. For short-term management, the fund is included in the state investment

fund managed by the State of Wisconsin Investment Board.

In addition to any donations, gifts, or bequests made to the fund, any moneys

transferred to the fund, any moneys deposited in the fund by WEDC, and any income

or interest earned by the fund, the fund consists of moneys generated from tax

revenue collected from a specific class of companies, referred to in the bill as

“qualifying companies." Under the bill, a qualifying company is identified by the

company's principal business activity code under the North American Industry

Classification System (NAICS).

The bill directs the Department of Revenue to determine before May 1, 2019,

the total amount of withholding taxes due and payable from qualifying companies

for calendar year 2017. Then, on July 1, 2019, and on each July 1 thereafter, ending

on July 1, 2033, DOR must deposit in the fund an amount equal to 95 percent of the

withholding taxes due and payable from qualifying companies that exceeds the total

amount calculated for calendar year 2017. DOR may not deposit more than

$50,000,000 into the fund in any fiscal year and may not deposit more than

$500,000,000 in total into the fund.

Innovation Fund Council

The bill requires WEDC to establish an Innovation Fund Council to advise

WEDC with respect to the use of fund moneys to make grants and to make payments

under certain contracts, as set forth below. The advisory council consists of the

following 11 members:

1. One member appointed by the executive director of the Investment Board.

2. One member appointed by the managing director of the Wisconsin Alumni

Research Foundation.

3. One member appointed by the governor who serves in a senior management

position at a manufacturing company headquartered in Wisconsin that employs at

least 250 employees and engages in research and development.

4. One member appointed by the governor who serves in a senior management

position at a manufacturing company headquartered in Wisconsin that employs

fewer than 50 employees and who has responsibilities related to the financing of the

company or of its product development activities.

5. One member appointed by the governor who serves in a senior management

position at a technology company headquartered in Wisconsin that employs at least

250 employees and engages in corporate research and development.

6. One member appointed by the governor who serves in a senior management