238.15 Early stage business investment program.

782 words·~4 min read·/wi/chapter-238/238-15

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Angel investment tax credits. The corporation shall implement a program to certify businesses for purposes of s. 71.07

(5d). A business desiring certification shall submit an application to the corporation in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation may certify the business and determine the amount that qualifies for purposes of s. 71.07

(5d). The corporation may certify or recertify a business for purposes of s. 71.07

(5d)only if the business satisfies all of the following conditions:

(a)It has its headquarters in this state.

(b)At least 51 percent of the employees employed by the business are employed in this state, except that if a business fails to satisfy this paragraph in any year due to a business merger or acquisition, the corporation may grant the business a waiver that allows the business to remain eligible for certification or recertification under this subsection if all of the following apply:

1. The business maintains its headquarters in this state.

2. After the merger or acquisition, the business increases the number of employees the business employs in this state.

3. The corporation determines that the merger or acquisition was not for the purpose of relocating the business’s operations or employees from this state to another state or for the purpose of ceasing the business’s efforts to further grow and expand in this state.

4. No later than the first day of the 13th month beginning after the date of the merger or acquisition, at least 51 percent of the employees employed by the business are employed in this state.

(f)It has the potential for increasing jobs in this state, increasing capital investment in this state, or both, and any of the following apply:

1m. It is engaged in, or has committed to engage in, innovation, if the innovation involves the development of a differentiating technology, product, service, or production process.

2. It is undertaking pre-commercialization activity related to differentiating technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying differentiating technology.

(g)It is not primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378

(h).

(h)At the time it is initially certified under this subsection, it has less than 100 employees.

(j)At the time it is initially certified under this subsection, it has been in operation in this state for not more than 10 consecutive years.

(k)For taxable years beginning before January 1, 2008, it has not received more than $1,000,000 in investments that have qualified for tax credits under s. 71.07

(5d).

(km)It has not received aggregate private equity investment in cash of more than $10,000,000 before it is initially certified under this subsection.

(kn)For taxable years beginning after December 31, 2007 and before January 1, 2011, it has not received more than $4,000,000 in investments that have qualified for tax credits under ss. 71.07

(5b)and

(5d), 71.28

(5b), 71.47

(5b), and 76.638 .

(L)For taxable years beginning after December 31, 2010 and before January 1, 2018, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07

(5b)and

(5d), 71.28

(5b), 71.47

(5b), and 76.638 .

(Lg)For taxable years beginning after December 31, 2017, it has not received more than $12,000,000 in investments that have qualified for tax credits under ss. 71.07

(5b)and

(5d), 71.28

(5b), 71.47

(5b), and 76.638 .

1. It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07

(5d)and agrees to pay the corporation a penalty, in an amount determined under subd. 2. , if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, except as provided in policies and procedures under sub.

(dm), a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

a. The business’s employees.

b. The business’s total payroll.

c. The activities of the business’s headquarters, as determined by the corporation.