Senate Bill 563 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 of section 71.07 (5d) (a) 1. (intro.) of the statutes. Additionally, the bill creates new sections (71.07 (5b) (a) 3., 71.28 (5b) (a) 3., and 71.47 (5b) (a) 3.) that define "investment" similarly, allowing for a broader range of qualifying investments for tax credits.

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 expanding the types of investments that can qualify for tax credits. The bill specifies that these definitions will apply to taxable years beginning on January 1, 2025.

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