MPG:amn
2021 - 2022 LEGISLATURE
November 30, 2021 - Introduced by Senators Feyen,
Ballweg, Cowles, Darling,
Pfaff, Ringhand and Wanggaard, cosponsored by Representatives
Zimmerman, McGuire, Armstrong, Cabral-Guevara, Dallman, Drake,
Horlacher, Kuglitsch, Loudenbeck, Macco, Moses, Neylon, Novak,
Penterman, Plumer, Rozar, Schraa, Skowronski, Snyder, Tusler, Vruwink
and Wittke. Referred to Committee on Financial Institutions and Revenue.
SB729,1,3
1An Act to renumber and amend 238.15 (1) (b); and
to create 238.15 (1) (b) 1.,
22., 3. and 4. of the statutes;
relating to: qualified new business venture
3eligibility.
Analysis by the Legislative Reference Bureau
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, at least 51 percent of
the employees employed by the business are employed in Wisconsin.
Under this bill, a business remains eligible for certification as a qualified new
business venture if it fails to satisfy that 51 percent in-state employment
requirement due to a business merger or acquisition, provided that all of the
following apply:
1. The business maintains its headquarters in Wisconsin.
2. After the merger or acquisition, the business increases the number of
employees the business employs in Wisconsin.
3. WEDC determines that the merger or acquisition was not for the purpose of
relocating the business's operations or employees outside Wisconsin or for the
purpose of ceasing the business's efforts to further grow and expand in Wisconsin.
4. The business satisfies the 51 percent in-state employment requirement
within approximately 12 months after the merger or acquisition occurs.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB729,1
1Section
1. 238.15 (1) (b) of the statutes is renumbered 238.15 (1) (b) (intro.)
2and amended to read:
SB729,2,73
238.15
(1) (b) (intro.) At least 51 percent of the employees employed by the
4business are employed in this state
., except that if a business fails to satisfy this
5paragraph in any year due to a business merger or acquisition, the corporation may
6grant the business a waiver that allows the business to remain eligible for
7certification or recertification under this subsection if all of the following apply:
SB729,2
8Section
2. 238.15 (1) (b) 1., 2., 3. and 4. of the statutes are created to read:
SB729,2,99
238.15
(1) (b) 1. The business maintains its headquarters in this state.
SB729,2,1110
2. After the merger or acquisition, the business increases the number of
11employees the business employs in this state.
SB729,2,1512
3. The corporation determines that the merger or acquisition was not for the
13purpose of relocating the business's operations or employees from this state to
14another state or for the purpose of ceasing the business's efforts to further grow and
15expand in this state.
SB729,2,1816
4. No later than the first day of the 13th month beginning after the date of the
17merger or acquisition, at least 51 percent of the employees employed by the business
18are employed in this state.
