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WI SB563

WI SB563
Qualifying investments for purposes of claiming the early stage seed investment and angel investment credits. (FE)

summary

Introduced
10/24/2025
In Committee
01/29/2026
Crossed Over
Passed
Dead
03/23/2026

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)

Last Action

Failed to pass pursuant to Senate Joint Resolution 1 (on 03/23/2026)

Bill Topics

Banking, Finance, and Domestic Commerce
  • ‐ Small Business
Macroeconomics
  • ‐ Industrial Policy
  • ‐ Taxation, Tax Policy, and Tax Reform
(1 Companion Bills)

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Document Type Source Location Created
State Bill Page https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb563 10/24/2025
SB563 ROCP for Joint Committee on Finance https://docs.legis.wisconsin.gov/2025/related/records/joint/finance/1985532.pdf 03/28/2026
Analysis - LC Amendment Memo https://docs.legis.wisconsin.gov/document/lcamendmentmemos/2025/REG/SB563.pdf 01/29/2026
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 01/27/2026
Senate Amendment 1 https://docs.legis.wisconsin.gov/document/amends/2025/REG/SB563-SA1.pdf 11/11/2025
Fiscal Note - SB563: Fiscal Estimate From WEDC https://docs.legis.wisconsin.gov/2025/related/fe/sb563/sb563_wedc.pdf 11/07/2025
Fiscal Note - SB563: Fiscal Estimate From DOR https://docs.legis.wisconsin.gov/2025/related/fe/sb563/sb563_dor.pdf 11/04/2025
BillText https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/SB563.pdf 10/24/2025
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