11 Apr Bill to improve Wisconsin’s investor tax credit law signed by Gov. Evers following legislative action
Gov. Tony Evers has signed into law Assembly Bill 759, which will make it easier for young companies to stay put in Wisconsin as they grow and add jobs while expanding beyond its borders. It took effect Sunday, April 10.
The effort to pass the bill was led by the Wisconsin Technology Council. It was previously passed unanimously in the 99-seat Assembly and the 33-seat Senate.
The bill amends Wisconsin’s “Qualified New Business Venture” law, which took effect in January 2005 and remains a leading bipartisan example of how to carefully lever state tax credits for angel and venture capital investors who risk money in startups and emerging companies.
Under that law, qualified investors can get a 25% state tax credit on investments in QNBV companies that meet a prescribed set of conditions, including maintaining 51% of their employees and a headquarters in Wisconsin. Over time, the law has led to hundreds of millions of private dollars in Wisconsin investments.
Assembly Bill 759 allows young companies that acquire or merge with similar companies elsewhere a year to remain in compliance with the 51% employment rule, while working with the Wisconsin Economic Development Corp. to make sure other conditions are met.