Wis. Technology Council: State budget contains incentives to boost entrepreneurial and tech-based economy

Contact: Tom Still at 608-442-7557

MADISON – The biennial state budget signed into law Monday by Gov. Jim Doyle builds on recent efforts to enhance Wisconsin’s tech-based economy through targeted tax credits, investments in core research projects and other incentives for companies and entrepreneurs.

A number of the ideas were rooted in recommendations by the non-partisan Wisconsin Technology Council in its “white paper” reports to the governor and the Legislature. The most recent report was issued in late 2008.

Read more at http://www.wisconsintechnologycouncil.com/publications/white_papers/

Major provisions signed into law include:

* An exemption to the sales and use tax for machinery and other tangible personal property used for qualified manufacturing or biotechnology research in the state, effective Jan. 1, 2012. “Qualified research expenses” would be qualified research expenses as defined under the Internal Revenue Code incurred by the claimant for research conducted in Wisconsin for the tax year. This is the same definition used for the research credit under current law.

* Research and development tax credits for businesses that increase R&D by more than 125 percent of the company’s three-year R&D average. The credit would be an income and franchise tax credit worth $1 for each $1 of investment above 125 percent. This provision would take effect Jan. 1, 2011, using the same “qualified research expenses” definition as the sales tax exemption.

* Spending $2 million on the Wisconsin Genomics Initiative, a collaborative effort between the Marshfield Clinic, Medical College of Wisconsin, UW-Madison School of Medicine and Public Health and UW-Milwaukee. This investment will promote Wisconsin leadership in personalized health care research.

* Spending $8.2 million on biotechnology, nanotechnology and information technologies research at the Wisconsin Institutes for Discovery, a groundbreaking research institute at the UW-Madison charged with enhancing human health through interdisciplinary research. This budget item will leverage $150 million in private and public investment in construction of the Institute and its private counterpart, the Morgridge Institute for Research.

* A provision that will modify Wisconsin’s so-called “self-dealing” law to lower barriers to university professors launching start-up companies, which can create high-wage jobs.

* Spending $240-million over six years on UW-Milwaukee’s building plans, which include expanding its research and economic development activities.

* Spending $4.05 million per year in research and development projects at the Great Lakes Bioenergy Research Center at the UW-Madison and related bio-energy projects at UW-Milwaukee, UW-Stevens Point, UW-River Falls and UW-Green Bay.

The provisions in the budget build upon ideas passed in other recent budget bills and the state’s economic stimulus bill, which enhanced Wisconsin’s nationally known investor tax credits law.

“The governor and members of the Legislature deserve credit for continuing to invest in Wisconsin’s knowledge- based economy, even during a budget year that required many tough decisions,” said Tom Still, president of the Tech Council.

The Tech Council is the independent, non-profit and non-partisan science and technology adviser to the governor and the Legislature. Through its Wisconsin Innovation Network, Wisconsin Angel Network and Wisconsin Security Research Consortium, the Tech Council provides outreach and services statewide.