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LRB-1083/1
JK:wlj
2017 - 2018 LEGISLATURE
January 30, 2017 - Introduced by Representatives Barca, Stuck, Hesselbein,
Fields, Doyle, Goyke, Anderson, Ohnstad, Crowley, Sinicki, Vruwink, Pope,
Wachs, Mason, Berceau, Sargent, Spreitzer, Zamarripa, Bowen, Milroy,
Billings, Shankland, Hebl, Meyers and Subeck, cosponsored by Senators
Erpenbach, Ringhand, L. Taylor and C. Larson. Referred to Committee on
Jobs and the Economy.
AB39,1,7 1An Act to amend 71.07 (5b) (d) 1., 71.07 (5d) (b) 2., 71.07 (5d) (d) 2., 71.10 (4)
2(gwb), 71.10 (4) (gx), 71.10 (4) (i), 71.28 (5b) (d) 1., 71.30 (3) (eop), 71.30 (3) (f),
371.47 (5b) (d) 1., 71.49 (1) (eop) and 71.49 (1) (f); and to create 20.835 (2) (ba),
471.07 (5b) (d) 1m., 71.07 (5b) (d) 4., 71.07 (5d) (b) 3., 71.07 (5d) (d) 2m., 71.07 (5d)
5(d) 5., 71.28 (5b) (d) 1m., 71.28 (5b) (d) 4., 71.47 (5b) (d) 1m. and 71.47 (5b) (d)
64. of the statutes; relating to: allowing refunds for the early stage seed and
7angel investment tax credits and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, a taxpayer may claim early stage seed and angel investment
income and franchise tax credits for the taxpayer's investments in qualified new
businesses. If the credit amounts exceed the taxpayer's tax liability, the taxpayer
does not receive a refund, but, instead, may apply the amount of the unused credits
to subsequent taxable years. Under this bill, if the credit amounts exceed the
taxpayer's tax liability, the taxpayer receives a refund.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB39,1 1Section 1. 20.835 (2) (ba) of the statutes is created to read:
AB39,2,42 20.835 (2) (ba) Early stage seed and angel investment credits. A sum sufficient
3to make the payments under ss. 71.07 (5b) (d) 4. and (5d) (d) 5., 71.28 (5b) (d) 4., and
471.47 (5b) (d) 4.
AB39,2 5Section 2. 71.07 (5b) (d) 1. of the statutes is amended to read:
AB39,2,86 71.07 (5b) (d) 1. Section For taxable years beginning before January 1, 2017,
7s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
8under this subsection.
AB39,3 9Section 3. 71.07 (5b) (d) 1m. of the statutes is created to read:
AB39,2,1210 71.07 (5b) (d) 1m. For taxable years beginning after December 31, 2016, s.
1171.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
12credit under this subsection.
AB39,4 13Section 4. 71.07 (5b) (d) 4. of the statutes is created to read:
AB39,2,1914 71.07 (5b) (d) 4. For taxable years beginning after December 31, 2016, if the
15allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
1671.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified
17by the department of revenue to the department of administration for payment by
18check, share draft, or other draft drawn from the appropriation account under s.
1920.835 (2) (ba).
AB39,5 20Section 5. 71.07 (5d) (b) 2. of the statutes is amended to read:
AB39,3,5
171.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, and
2before January 1, 2017,
for the taxable year certified by the department of commerce
3or the Wisconsin Economic Development Corporation, an amount equal to 25 percent
4of the claimant's bona fide angel investment made directly in a qualified new
5business venture.
AB39,6 6Section 6. 71.07 (5d) (b) 3. of the statutes is created to read:
AB39,3,107 71.07 (5d) (b) 3. For taxable years beginning after December 31, 2016, for the
8taxable year certified by the Wisconsin Economic Development Corporation, an
9amount equal to 25 percent of the claimant's bona fide angel investment made
10directly in a qualified new business venture.
AB39,7 11Section 7. 71.07 (5d) (d) 2. of the statutes is amended to read:
AB39,3,1412 71.07 (5d) (d) 2. Section For taxable years beginning before January 1, 2017,
13s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
14under this subsection.
AB39,8 15Section 8. 71.07 (5d) (d) 2m. of the statutes is created to read:
AB39,3,1816 71.07 (5d) (d) 2m. For taxable years beginning after December 31, 2016, s.
1771.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
18credit under this subsection.
AB39,9 19Section 9. 71.07 (5d) (d) 5. of the statutes is created to read:
AB39,3,2520 71.07 (5d) (d) 5. For taxable years beginning after December 31, 2016, if the
21allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
2271.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified
23by the department of revenue to the department of administration for payment by
24check, share draft, or other draft drawn from the appropriation account under s.
2520.835 (2) (ba).
AB39,10
1Section 10. 71.10 (4) (gwb) of the statutes is amended to read:
AB39,4,32 71.10 (4) (gwb) Early stage seed investment credit under s. 71.07 (5b), except
3as provided under par. (i)
.
AB39,11 4Section 11. 71.10 (4) (gx) of the statutes is amended to read:
AB39,4,65 71.10 (4) (gx) Angel investment credit under s. 71.07 (5d), except as provided
6under par. (i)
.
AB39,12 7Section 12. 71.10 (4) (i) of the statutes is amended to read:
AB39,4,228 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
9preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
10beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
11credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
1271.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
13credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
1471.07 (3rm), food processing plant and food warehouse investment credit under s.
1571.07 (3rn), business development credit under s. 71.07 (3y), early stage seed
16investment credit under s. 71.07 (5b) (d) 4., angel investment credit under s. 71.07
17(5d) (d) 5.,
film production services credit under s. 71.07 (5f), film production
18company investment credit under s. 71.07 (5h), veterans and surviving spouses
19property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w),
20beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income
21tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes
22withheld under subch. X.
AB39,13 23Section 13. 71.28 (5b) (d) 1. of the statutes is amended to read:
AB39,5,3
171.28 (5b) (d) 1. Subsection For taxable years beginning before January 1,
22017, sub.
(4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit
3under this subsection.
AB39,14 4Section 14. 71.28 (5b) (d) 1m. of the statutes is created to read:
AB39,5,75 71.28 (5b) (d) 1m. For taxable years beginning after December 31, 2016, sub.
6(4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under
7this subsection.
AB39,15 8Section 15. 71.28 (5b) (d) 4. of the statutes is created to read:
AB39,5,149 71.28 (5b) (d) 4. For taxable years beginning after December 31, 2016, if the
10allowable amount of the claim under par. (b) exceeds the tax otherwise due under s.
1171.23, the amount of the claim not used to offset the tax due shall be certified by the
12department of revenue to the department of administration for payment by check,
13share draft, or other draft drawn from the appropriation account under s. 20.835 (2)
14(ba).
AB39,16 15Section 16. 71.30 (3) (eop) of the statutes is amended to read:
AB39,5,1716 71.30 (3) (eop) Early stage seed investment credit under s. 71.28 (5b), except
17as provided under par. (f)
.
AB39,17 18Section 17. 71.30 (3) (f) of the statutes is amended to read:
AB39,6,419 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
20farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
21investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
22facility investment credit under s. 71.28 (3r), woody biomass harvesting and
23processing credit under s. 71.28 (3rm), food processing plant and food warehouse
24investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
25(3w), business development credit under s. 71.28 (3y), early stage seed investment

1credit under s. 71.28 (5b) (d) 4.,
film production services credit under s. 71.28 (5f), film
2production company investment credit under s. 71.28 (5h), beginning farmer and
3farm asset owner tax credit under s. 71.28 (8r), and estimated tax payments under
4s. 71.29.
AB39,18 5Section 18. 71.47 (5b) (d) 1. of the statutes is amended to read:
AB39,6,86 71.47 (5b) (d) 1. Section For taxable years beginning before January 1, 2017,
7s.
71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit
8under this subsection.
AB39,19 9Section 19. 71.47 (5b) (d) 1m. of the statutes is created to read:
AB39,6,1210 71.47 (5b) (d) 1m. For taxable years beginning after December 31, 2016, s.
1171.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
12credit under this subsection.
AB39,20 13Section 20. 71.47 (5b) (d) 4. of the statutes is created to read:
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