— GOP lawmakers want to allow angel investors to transfer tax credits earned through investments in certain startups.
Rep. Robert Wittke of Racine and Sen. Dan Feyen of Fond du Lac recently began circulating legislation in a co-sponsorship memo, which touts the success of the state’s Qualified New Business Venture program. This program of the Wisconsin Economic Development Corporation aims to encourage more early-stage investment in the state.
It offers tax credits to eligible angel and venture fund investors making cash equity investments in qualifying startups. Investors that meet the program’s eligibility requirements can receive a state income tax credit equal to 25% of the investment made in the QNBV-certified business, the memo shows.
“This credit helps incent startup investment by alleviating some of the risk associated with this type of venture,” the lawmakers wrote in the memo. “The investments encouraged by this program provide the capital necessary for emerging growth companies to develop new products and technologies, move products to market, and provide high-quality jobs in Wisconsin.”
But while the early stage seed investment tax credit available to venture capital firms can be sold or otherwise transferred, the angel investment tax credit cannot under current state law. Under the bill, the tax credit for angel investors could be transferred to someone subject to state individual income tax if the recipient notifies WEDC and the state Department of Revenue and provides documentation.
As with the early stage seed investment tax credit, a person couldn’t sell or transfer a credit more than once in a 12-month period, and WEDC could charge a fee of up to 5% of the credit amount, according to the Legislative Reference Bureau.
Joe Kremer, director of the Wisconsin Technology Council’s Investor Networks, said the organization has been advocating for this change as an enhancement to the QNBV program. In an interview yesterday, he said the program has been “wildly successful” for improving early-stage investment.
“It just kind of makes sense to now go outside of the borders and bring more dollars in from out-of-state,” he told WisBusiness.com.
When the QNBV program was first created about two decades ago, Kremer said it gave the Tech Council another talking point for its advocacy efforts around the state’s investment ecosystem. If the proposed change makes it past the Legislature and Gov. Tony Evers, the group will be in a better position to tout Wisconsin opportunities to angel investors from outside of the state, he said.
“I think it’s going to have very positive implications of bringing more dollars in, and it’s also going to give us a nice ability to market our state to out-of-staters,” he said.
Kremer added the Tech Council’s support of the bill is conditional on it making no changes to the definition of who could qualify for the tax credit.
The co-sponsorship deadline is Thursday.
See the memo:
See more on the QNBV program: https://wedc.org/programs-and-resources/qualified-new-business-venture/
— Dairy Farmers of Wisconsin predicts the food industry next year will be defined by customers’ focus on global health and sustainability, among other trends.
The Madison-based state dairy marketing group yesterday released its “2024 Cheese Trends” report, which highlights expected consumer behaviors based on the latest industry analysis.
“What people care about and what drives them should always be top of mind for marketers,” DFW Senior Vice President Suzanne Fanning said in a statement. “That’s why we constantly ask questions, review data, and learn as much as possible.”
The group says customers are increasingly conscious of where ingredients come from and prefer to know how the products they buy are farmed or grown. DFW says producers could include sustainability initiatives as part of their marketing efforts to take advantage of this trend.
“Choosing recycled and sustainable packaging also plays a role in consumer decisions, and advances in bioplastics to make biodegradable packaging from dairy waste are welcome developments,” report authors wrote.
Other trends include more consumers tending to eat at home, people valuing experiences over physical gifts, food and beverage choices being influenced by “traditional or nostalgic” flavors, as well as a greater willingness to try foods and flavors from other cultures.
“Food and drink shoppers have a blooming interest in international flavors and unexpected blends,” report authors wrote. “Twenty-two percent of consumers globally would like to see more local cuisines from other regions.”
Meanwhile, social media is influencing food purchases more than ever before, according to the report.
See the release: https://www.prnewswire.com/news-releases/dairy-farmers-of-wisconsin-uncovers-five-must-watch-2024-food-trends-in-new-report-302011642.html
See the report: https://dfwblobstorage.blob.core.windows.net/ewcmediacontainer/eatwisconsincheese/media/content/cheese-trends-report-2024.pdf
— Attorney General Josh Kaul said giving a win in bankruptcy court to the owners of opioid manufacturer Purdue Pharma would call for a reevaluation of the bankruptcy system.
Kaul in an interview with WisPolitics yesterday said there’s no clear timeline for when the multi-state suit against the company that introduced OxyContin to the market in 1996 will end. Purdue Pharma in 2019 filed for bankruptcy and entered into a deal that would grant the Sackler family, owners of the company, immunity from civil suits. They also would pay $4 billion over a decade toward efforts to combat the opioid crisis.
The Sacklers later bumped the payout to $6 billion, less than the $11 billion the U.S. House Oversight Committee found the family was worth in 2021.
“The possibility that the Sacklers may still be billionaires at the end of this case is in itself deeply concerning, and I think really calls for a reevaluation of the way that our bankruptcy system is structured and works,” he said.
Wisconsin’s share of the settlement would be 1.76% of all available funds under the agreement. That would be nearly $106 million. But if courts reject the terms, Wisconsin’s payout could change.
Kaul also said getting resources to combat the opioid epidemic is not as simple as fighting until the Sacklers pay out as much as they’re worth, noting it’s a bit of a balancing act.
See more at WisPolitics: https://www.wispolitics.com/2023/mon-pm-update-kaul-fears-bankruptcy-could-shield-sackler-family-fortune-in-opioid-suit/
<br><b><i>Top headlines from the Health Care Report…</b></i>
— The state Department of Veterans Affairs has been awarded $732,628 in federal funding to add nursing staff at the agency’s long-term care facilities.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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— The state Public Service Commission is taking applications for a new round of grants aimed at ensuring access to vehicle fuel during power outages.
The PSC yesterday said it expects to award up to $150,000 in the fourth round of funding from the Refueling Readiness Grant Program. Funding can be used to cover the cost of installing or modifying electrical panels, electrician labor and other changes that help maintain access to vehicle fuel during power outages.
Fuelling facilities in counties that haven’t gotten awards in previous grant rounds will be prioritized for upcoming awards.
The application period runs through April 20, 2024 at 1:30 p.m.
See the release: https://www.wispolitics.com/2023/psc-accepting-applications-for-wisconsins-refueling-readiness-grant-program/
#TOP STORIES#
# Health economist warns against hospital mergers in Wisconsin and nationally
# After going viral, Octane Coffee flooded with more than 1,500 business inquiries
# UWO Fond du Lac students making most of campus before closure: ‘We’re not just a number, we actually do stuff here.’
#TOPICS#
# AGRIBUSINESS
– Wisconsin farmland preservation program updates enacted
http://wisconsinagconnection.com/story-state.php?Id=1072&yr=2023
# CONSTRUCTION
– Local leaders praise federal funding for Wisconsin passenger rail studies
# EDUCATION
– Fennimore teacher wins ag education award
http://wisconsinagconnection.com/story-state.php?Id=1071&yr=2023
– UW President floated resignation if diversity deal failed
# FOOD AND BEVERAGE
– Dunkin’ proposed near state fairgrounds in West Allis
– Uncle Mike’s Food Emporium is now open, but what exactly is a ‘food emporium’?
# LEGAL
– Appeals court upholds decisions denying Kohler permit to build golf course near park
– Tribal leader says town must pay nearly $10M before it can access roads under tribal ordinance
# MANAGEMENT
– Milwaukee-based ASQ names new CEO
# MANUFACTURING
– SC Johnson threatens Canada plant closing if nearby residential project advances
# POLITICS
– Wisconsin Supreme Court not becoming ‘policymaking’ body, Kaul says
# REAL ESTATE
– Development firm linked to Bucks player Pat Connaughton sells Brady Street building
– Marquette students envision apartments, condos, hotel for Johnson Controls block in downtown Milwaukee
– Michigan developer puts downtown Green Bay, Ashwaubenon properties up for auction
# PRESS RELEASES
<i>See these and other press releases:
https://www.wisbusiness.com/press-releases/ </i>
American Red Cross: Two local men to be honored with Red Cross Lifesaving Awards
