AB 225

This bill allows the allocation of the early stage seed investment credit to offset

certain taxes imposed on insurers.

Under current law, insurers subject to the premium and gross investment

income taxes may claim the early stage seed investment credit to offset them. The

credit equals 25 percent of the claimant's investment paid to a fund manager who

invests in a new business venture that is certified by the Wisconsin Economic

Development Corporation. Under the bill, in the case of a partnership, limited

liability company, or tax-option corporation, the 25 percent limitation is determined

at the entity level, rather than the claimant level, and may be allocated among the

claimants according to the entity's organizational documents. The bill also provides

that a partnership, limited liability company, or tax-option corporation may not

claim the credit against these taxes, but rather must compute the credit amount that

each of its partners, members, or shareholders may claim and notify them of the

amount. The partners, members, or shareholders may claim the credit according to

their ownership interest or as specially allocated in the entity's organizational

documents.