Assembly Bill 566 aims to amend existing tax credit laws related to early stage seed investments and angel investments in Wisconsin. The bill modifies the definition of "bona fide angel investment" to include not only the purchase of an equity interest but also convertible instruments such as convertible notes and simple agreements for future equity. This change is reflected in the amendment to 71.07 (5d) (a) 1. (intro.), which now specifies these additional forms of investment. Furthermore, the bill creates new sections under 71.07 (5b) (a) 3., 71.28 (5b) (a) 3., and 71.47 (5b) (a) 3., which define "investment" similarly to include equity interests and convertible instruments.

The proposed changes are intended to enhance the attractiveness of investing in qualified new business ventures certified by the Wisconsin Economic Development Corporation (WEDC) by broadening the types of investments that qualify for tax credits. The bill is set to apply to taxable years beginning on January 1, 2025, thereby providing a clear timeline for implementation.

Statutes affected:
Bill Text: 71.07(5d)(a)1.(intro.), 71.07