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WI SB563
WI SB563Qualifying investments for purposes of claiming the early stage seed investment and angel investment credits. (FE)
summary
Introduced
10/24/2025
10/24/2025
In Committee
01/29/2026
01/29/2026
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2025-2026 Regular Session
Bill Summary
Current law allows an individual to claim an income tax credit equal to 25 percent of the individual[s bona fide angel investment in a qualified new business venture certified by the Wisconsin Economic Development Corporation. XBona fide angel investmentY is defined as the purchase of an equity interest or any other expenditure, as determined by rule. This bill modifies that definition to include a convertible instrument such as a convertible note or a simple agreement for future equity. Current law allows a person to claim the early stage seed investment tax credit equal to 25 percent of the person[s investment paid to a fund manager that the fund manager invests in a qualified new business venture certified by WEDC. Under the bill, XinvestmentY is defined as a purchase of an equity interest, a convertible instrument such as a convertible note or a simple agreement for future equity, or any other expenditure, as determined by WEDC. LRB-4914/1 JK:ajk&cdc 2025 - 2026 Legislature SENATE BILL 563 For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill expands the definition of investments that qualify for early stage seed and angel investment tax credits in Wisconsin. Currently, individuals can claim a 25% tax credit for investments in qualified new business ventures certified by the Wisconsin Economic Development Corporation (WEDC). The bill broadens the definition of "investment" and "bona fide angel investment" to include not just traditional equity purchases, but also convertible financial instruments like convertible notes and simple agreements for future equity (SAFEs). These new investment types can now be considered qualifying expenditures for tax credit purposes, giving investors more flexibility in how they support emerging businesses. The changes will apply to taxable years beginning on January 1, 2025, and aim to provide additional financial incentives for investors to support early-stage businesses in Wisconsin by offering more diverse investment options that can still qualify for tax credits.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (9)
Dan Feyen (R)*,
Kelda Roys (D)*,
Mark Spreitzer (D)*,
David Armstrong (R),
Russell Goodwin (D),
Clint Moses (R),
Jerry O'Connor (R),
Chuck Wichgers (R),
Robert Wittke (R),
Last Action
Representative Anderson added as a cosponsor (on 02/10/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb563 |
| Analysis - LC Amendment Memo | https://docs.legis.wisconsin.gov/document/lcamendmentmemos/2025/REG/SB563.pdf |
| SB563 ROCP for Committee on Government Operations, Labor and Economic Development | https://docs.legis.wisconsin.gov/2025/related/records/senate/government_operations_labor_and_economic_development/1967900.pdf |
| Senate Amendment 1 | https://docs.legis.wisconsin.gov/document/amends/2025/REG/SB563-SA1.pdf |
| Fiscal Note - SB563: Fiscal Estimate From WEDC | https://docs.legis.wisconsin.gov/2025/related/fe/sb563/sb563_wedc.pdf |
| Fiscal Note - SB563: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/sb563/sb563_dor.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/SB563.pdf |
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