LRB-5248/1
MPG:cjs
2021 - 2022 LEGISLATURE
December 17, 2021 - Introduced by Senators Feyen,
Cowles, Darling, Marklein
and Ringhand, cosponsored by Representatives Kuglitsch, Zimmerman,
Wittke, Armstrong, Dallman, Horlacher, Murphy, Mursau, Neylon,
Novak, Rozar, Schraa, Skowronski, Snyder, Spiros and Tusler. Referred to
Committee on Financial Institutions and Revenue.
SB785,1,2
1An Act to amend 238.15 (3) (e) of the statutes;
relating to: transferring the
2angel investment tax credit.
Analysis by the Legislative Reference Bureau
This bill allows the angel investment tax credit to be sold or otherwise
transferred to another taxpayer.
Under current law, the angel investment tax credit offsets the individual
income tax and equals 25 percent of the claimant's eligible investment in a qualified
new business venture that is certified by the Wisconsin Economic Development
Corporation. The credit may not be sold or otherwise transferred. The credit is part
of the early stage business investment program, along with the early stage seed
investment tax credit. Unlike the angel investment tax credit, the early stage seed
investment tax credit may be sold or otherwise transferred.
Under the bill, a person eligible to claim the angel investment tax credit may
sell or otherwise transfer the credit to another person who is subject to Wisconsin
individual income tax if the person notifies WEDC and the Department of Revenue
of the transfer and submits a copy of the transfer documents. The bill provides that,
as with the early stage seed investment tax credit under current law, a person may
not sell or otherwise transfer a credit more than once in a 12-month period and
WEDC may charge a fee of up to 5 percent of the credit amount.
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:
SB785,1
1Section
1. 238.15 (3) (e) of the statutes is amended to read:
SB785,2,152
238.15
(3) (e)
Transfer. A person who is eligible to claim a credit under s. 71.07
3(5b), 71.28 (5b), 71.47 (5b), or 76.638 may sell or otherwise transfer the credit to
4another person who is subject to the taxes or fees imposed under s. 71.02, 71.23,
571.47, or subch. III of ch. 76, if the person receives prior authorization from the
6investment fund manager and the manager then notifies the corporation and the
7department of revenue of the transfer and submits with the notification a copy of the
8transfer documents.
A person who is eligible to claim a credit under s. 71.07 (5d) may
9sell or otherwise transfer the credit to another person who is subject to the taxes
10imposed under s. 71.02 if the person notifies the corporation and the department of
11revenue of the transfer and submits with the notification a copy of the transfer
12documents. No person may sell or otherwise transfer a credit as provided in this
13paragraph more than once in a 12-month period. The corporation may charge any
14person selling or otherwise transferring a credit under this paragraph a fee of up to
155 percent of the credit amount sold or transferred.
