LRBs0198/1
MPG:jld&nwn:ph
2011 - 2012 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2011 ASSEMBLY BILL 90
October 10, 2011 - Offered by Representative Clark.
AB90-ASA1,1,2
1An Act to create 238.14 of the statutes;
relating to: entrepreneurial tax credit
2access grants.
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin Economic Development Corporation (WEDC)
may certify a person to receive, or a person may otherwise qualify for, income and
franchise tax credits based on the person's expenditures in this state related to the
person's business. This substitute amendment directs WEDC to establish a grant
program under which WEDC may award a grant to a person who wishes to secure
financing to make expenditures that would qualify for such tax credits. A person is
eligible to receive a grant if the expenditures are made for a business located in this
state that has fewer than 25 employees in this state or less than $5,000,000 in gross
receipts. No person may receive a grant unless the person has submitted business
and financing plans to a commercial lending institution and submitted copies of the
plans to WEDC. Before awarding a grant, WEDC must verify that the lender has
approved the person's plans and will underwrite a loan for expenditures, contingent
on the person receiving a grant. Under the substitute amendment, a person who
receives a grant to secure financing for making an expenditure that would qualify
for a tax credit may not claim a credit for that expenditure.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB90-ASA1,2,10
2238.14 Entrepreneurial tax credit access grants. (1) The corporation
3shall establish and administer a program to make grants under this section. The
4corporation may award a grant under the program to a person who intends to use the
5grant to secure financing for making expenditures that would qualify for a credit
6under s. 71.07 (2dy), (3g) (a) 2., (3n), (3p), (3r), (3rm), or (3rn), 71.28 (1dy), (3g) (a)
72., (3n), (3p), (3r), (3rm), or (3rn), or 71.47 (1dy), (3g) (a) 2., (3n), (3p), (3r), (3rm), or
8(3rn), if the expenditures are made for a business located in this state that has fewer
9than 25 employees in this state or less than $5,000,000 in gross receipts for the
10taxable year in which the person applies for a grant under this section.
AB90-ASA1,2,19
11(2) Any person who wishes to receive a grant under this section shall complete
12and submit an application to the corporation and enter into an agreement with the
13corporation to use the grant to secure financing for making expenditures described
14under sub. (1) and to repay any or all of the grant proceeds to the corporation if the
15person fails to comply with the agreement. An agreement under this subsection may
16provide that repayment shall be obtained through full or partial repayment of the
17principal amount of the grant plus interest, through receipt of a share of future
18profits from or an interest in a product or process, or through any other appropriate
19means.
AB90-ASA1,3,4
20(3) (a) No person may receive a grant under this section unless the person has
21submitted business and financing plans to a commercial lending institution and
1submitted copies of the plans to the corporation. Before awarding a grant, the
2corporation shall verify that the lender has approved the person's plans and will
3underwrite a loan for expenditures described under sub. (1), contingent on the
4person receiving a grant under this section.
AB90-ASA1,3,85
(b) The amount of any grant awarded under this section is the amount equal
6to 95 percent of the tax credit that the recipient could otherwise receive for making
7expenditures described under sub. (1), except that the amount of the grant may not
8exceed an amount equal to 20 percent of the cost of the project that is being financed.
AB90-ASA1,3,119
(c) The corporation shall require, as a condition of the grant, that the recipient
10contribute to a project an amount that is not less than the amount the recipient
11receives as a grant under this section.
AB90-ASA1,3,16
12(4) A person who receives a grant under this section to secure financing for
13making an expenditure described under sub. (1) may not claim a credit under s. 71.07
14(2dy), (3g) (a) 2., (3n), (3p), (3r), (3rm), or (3rn), 71.28 (1dy), (3g) (a) 2., (3n), (3p), (3r),
15(3rm), or (3rn), or 71.47 (1dy), (3g) (a) 2., (3n), (3p), (3r), (3rm), or (3rn) for that
16expenditure.
AB90-ASA1,3,19
17(5) (a) The corporation shall pay grants under this section from the
18appropriation under s. 20.192 (1) (r). The total amount that the corporation may
19award under this section in a fiscal year is $8,000,000.
AB90-ASA1,3,2120
(b) The corporation shall establish policies and procedures to administer this
21section.
AB90-ASA1,3,2322
(c) The corporation may not award grants under this section after January 1,
232015.
