2017 - 2018 LEGISLATURE
March 20, 2017 - Introduced by Representatives Kolste, Barca, Spreitzer, Goyke,
Sargent, Ohnstad, Pope, Berceau, Meyers, Crowley, Vruwink, Subeck,
Genrich, Wachs, Considine, Sinicki and Zamarripa, cosponsored by Senators
Ringhand and L. Taylor. Referred to Committee on Jobs and the Economy.
1An Act to create
238.165 of the statutes; relating to: entrepreneurial tax credit
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin Economic Development Corporation may
certify a person to receive, or a person may otherwise qualify for, income and
franchise tax credits based on the person's expenditures in this state related to the
person's business. This bill directs WEDC to establish a grant program under which
WEDC may award a grant to a person who wishes to secure financing to make
expenditures that would qualify for such tax credits. A person is eligible to receive
a grant if the expenditures are made for a business located in this state that has fewer
than 25 employees in this state or less than $5,000,000 in gross receipts. No person
may receive a grant unless the person has submitted business and financing plans
to a commercial lending institution and submitted copies of the plans to WEDC.
Before awarding a grant, WEDC must verify that the lender has approved the
person's plans and will underwrite a loan for expenditures, contingent on the person
receiving a grant. Under the bill, a person who receives a grant to secure financing
for making an expenditure that would qualify for a tax credit may not claim a credit
for that expenditure.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
238.165 of the statutes is created to read:
2238.165 Entrepreneurial tax credit access grants. (1)
The corporation 3
shall establish and administer a program to make grants under this section. The 4
corporation may award a grant under the program to a person who intends to use the 5
grant to secure financing for making expenditures that would qualify for a credit 6
under s. 71.07 (2dy) or (3g) (a) 2., 71.28 (1dy) or (3g) (a) 2., or 71.47 (1dy) or (3g) (a) 7
2., if the expenditures are made for a business located in this state that has fewer 8
than 25 employees in this state or less than $5,000,000 in gross receipts for the 9
taxable year in which the person applies for a grant under this section.
Any person who wishes to receive a grant under this section shall complete 11
and submit an application to the corporation and enter into an agreement with the 12
corporation to use the grant to secure financing for making expenditures described 13
under sub. (1) and to repay any or all of the grant proceeds to the corporation if the 14
person fails to comply with the agreement. An agreement under this subsection may 15
provide that repayment shall be obtained through full or partial repayment of the 16
principal amount of the grant plus interest, through receipt of a share of future 17
profits from or an interest in a product or process, or through any other appropriate 18
(a) No person may receive a grant under this section unless the person has 20
submitted business and financing plans to a commercial lending institution and 21
submitted copies of the plans to the corporation. Before awarding a grant, the 22
corporation shall verify that the lender has approved the person's plans and will 23
underwrite a loan for expenditures described under sub. (1), contingent on the 24
person receiving a grant under this section.
(b) The amount of any grant awarded under this section is the amount equal 2
to 95 percent of the tax credit that the recipient could otherwise receive for making 3
expenditures described under sub. (1), except that the amount of the grant may not 4
exceed an amount equal to 20 percent of the cost of the project that is being financed.
(c) The corporation shall require, as a condition of the grant, that the recipient 6
contribute to a project an amount that is not less than the amount the recipient 7
receives as a grant under this section.
A person who receives a grant under this section to secure financing for 9
making an expenditure described under sub. (1) may not claim a credit under s. 71.07 10
(2dy) or (3g) (a) 2., 71.28 (1dy) or (3g) (a) 2., or 71.47 (1dy) or (3g) (a) 2. for that 11
(a) The corporation shall pay grants under this section from the 13
appropriation under s. 20.192 (1) (r). The total amount that the corporation may 14
award under this section in a fiscal year is $8,000,000.
(b) The corporation shall establish policies and procedures to administer this 16
(c) The corporation may not award grants under this section after January 1, 18