AB 565

Under current law, the Wisconsin Economic Development Corporation may certify certain businesses as “qualified new business ventures" for purposes of receiving investments that qualify the investors for tax credits under the angel and early stage seed investment tax credit program. WEDC may certify a business as a qualified new business venture if, among other requirements, the business has its headquarters in this state and at least 51 percent of the business’s employees are employed in this state. This bill eliminates the 51 percent in-state employment requirement for certification.

Also under current law, a business must agree not to relocate outside of this state within three years after the business receives an investment under the program. Currently, relocation generally is defined as locating more than 51 percent any of the following outside of this state: 1) the business’s employees; 2) the business’s total payroll; or 3) the activities of the business’s headquarters. Under the bill, a business is considered to have relocated outside of this state if the business locates its headquarters outside of this state.

Under current law, WEDC may certify a business as a qualified new business venture if, among other requirements, for taxable years beginning after December 31, 2017, the business has not received more than $12,000,000 in investments that qualified for tax credits under the program. The bill raises that threshold to $20,000,000 for taxable years beginning after December 31, 2025.