Bill
Bill > AB566
WI AB566
WI AB566Qualifying 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
02/11/2026
02/11/2026
Crossed Over
02/10/2026
02/10/2026
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. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill modifies Wisconsin tax law to expand the definition of eligible investments for early stage seed and angel investment tax credits. Currently, investors 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" to explicitly include convertible financial instruments like convertible notes and simple agreements for future equity (SAFEs), in addition to traditional equity purchases. This change allows investors more flexibility in how they can invest in early-stage businesses while still qualifying for tax credits. The modifications apply to multiple sections of Wisconsin's tax code, covering individual income tax, corporate income tax, and other tax types. The changes will first take effect for taxable years beginning on January 1, 2025, giving businesses and investors time to understand and prepare for the new provisions. By expanding the types of qualifying investments, the bill aims to provide more financial options and potential tax incentives for supporting emerging businesses in Wisconsin.
Committee Categories
Budget and Finance, Government Affairs
Sponsors (9)
David Armstrong (R)*,
Russell Goodwin (D)*,
Clint Moses (R)*,
Jerry O'Connor (R)*,
Chuck Wichgers (R)*,
Robert Wittke (R)*,
Dan Feyen (R),
Kelda Roys (D),
Mark Spreitzer (D),
Last Action
Read first time and referred to joint committee on Finance (on 02/11/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab566 |
| Analysis - LC Amendment Memo | https://docs.legis.wisconsin.gov/document/lcamendmentmemos/2025/REG/AB566.pdf |
| AB566 ROCP for Committee on State Affairs | https://docs.legis.wisconsin.gov/2025/related/records/assembly/state_affairs/1955873.pdf |
| Assembly Amendment 1 | https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB566-AA1.pdf |
| Fiscal Note - AB566: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/ab566/ab566_dor.pdf |
| Fiscal Note - AB566: Fiscal Estimate From WEDC | https://docs.legis.wisconsin.gov/2025/related/fe/ab566/ab566_wedc.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB566.pdf |
Loading...