Transferring the angel investment tax credit. (FE)
Impact
This bill significantly alters the landscape for angel investors in Wisconsin by making the angel investment tax credit transferable. Prior to this amendment, investors could utilize the tax credits only for their own tax liabilities. By enabling transfers, the bill aims to enhance participation in the early-stage investment market, potentially increasing the volume of investments into start-ups and innovative companies within the state. Such changes could foster entrepreneurship, attracting more investors who may have otherwise hesitated due to the limited usability of these credits.
Summary
Senate Bill 882 proposes an amendment to Wisconsin statutes concerning the angel investment tax credit. This bill allows the credit, which is currently non-transferable, to be sold or transferred to other taxpayers who are subject to Wisconsin income tax. The procedure requires prior notification to the Wisconsin Economic Development Corporation (WEDC) and the Department of Revenue, alongside submission of transfer documentation. The intention behind this change is to enhance liquidity for investors and promote more robust investments in early-stage businesses by allowing the credits to be passed on, potentially encouraging more extensive financial support for qualifying new business ventures.
Contention
Notable points of contention surrounding SB882 may arise regarding its implications for state revenue and the fairness of transferring tax credits. Critics might argue that allowing transfers could complicate tax regulations and oversight, opening doors for potential misuse or abuse. Additionally, there may be concerns about the fee of up to 5 percent of the credit amount that WEDC could charge for processing these transfers, which some may view as a barrier to access for smaller investors. The debate will likely focus on whether the benefits of increased investment outweigh the potential complications this amendment may introduce into the state’s tax code.
In tax credit and tax benefit administration, further providing for definitions; in research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.
Provides for eligibility for the Angel Investor Tax Credit for investments made in federal opportunity zones. (Item #19) (gov sig) (EN DECREASE GF RV See Note)
Marihuana: other; marihuana accessory with a heating element; prohibit the sale of unless the heating element is made of or encased in certain materials. Amends sec. 11 of 2018 IL 1 (MCL 333.27961).
Prohibits schools from being members of, or participating in competition sponsored by, any intrastate interscholastic extracurricular athletic association or organization that does not provide for certain student eligibility procedures