Governor Signs Bill for Angel Investment Program
MADISON, April 5, 2012 – Governor Scott Walker today signed Senate Bill 463 into law, legislation that makes improvements to the state’s Angel Investment and Early Stage Investment Tax Credit Program.
The program spurs private investment in early-stage businesses, fostering job creation and new business growth across the state.
“The legislation strengthens one of the nation’s leading angel and early stage investment tax credit programs,” said Governor Walker. “These changes provide additional protections to taxpayers and modernize the program to better meet the needs of entrepreneurs and investors.”
The legislation allows the state to recapture the value of tax credits from companies who move out-of-state within three years of receiving investments that qualify for tax credits under the program. The bill also modifies the criteria the WEDC can use for recertifying a company for participation in the program after it had been approved for tax credits. It would allow WEDC to recertify a company if has over 100 employees or has been in operation more than 10 years, because some companies still fit the mold of an early stage company, regardless of the number of employees.
The angel investment tax credit program allows a taxpayer to claim a tax credit that equals 25 percent of an angel investment made directly in a qualified new business venture, which is certified by the WEDC. Since 2005, 195 entrepreneurial companies have been certified to receive tax credit assistance, which has leveraged more than $163 million in investment in those companies and affected 930 new jobs.
Governor Walker thanked the authors of the bill, Sen. Joe Leibham (R-Sheboygan) and Rep. Mike Kuglitsch (R-New Berlin) for their work in bringing the legislation to his desk