Senate Bill 658 proposes the creation of a tax credit for insurers who make qualified equity investments in community development entities. The bill allows insurers to receive a credit against state taxes, contingent upon the community development entity using the investment to support qualified active low-income community businesses within Wisconsin. The credit structure is designed to provide zero percent for the first two years following the investment and 10 percent for the subsequent five years. The bill outlines definitions for qualified community development entities and qualified active low-income community businesses, establishing criteria for their operations and income sources.

Additionally, the bill mandates that qualified community development entities apply to the Department of Revenue (DOR) for authority to issue these investments, with a cap of $125 million for both rural and metro counties. The DOR is also granted the authority to recapture credits under specific conditions, such as failure to utilize the investment as intended or early redemption of the investment. Each entity must submit an annual report detailing their investments and the impact on employment within the businesses they support.