Bill > AB676

This bill creates a new tax credit for insurers who invest in "community development entities," which are organizations that invest in businesses located in low-income communities. The credit is calculated based on a percentage of the investment amount over several years, starting with 0% for the first two years and then 10% for the next five years. To qualify for the credit, the investment must be in a "qualified equity investment," meaning it's an equity investment in a "qualified community development entity" that uses at least 100% of the purchase price to make "qualified low-income community investments" in businesses operating within Wisconsin. These businesses must meet specific criteria, including not deriving a significant portion of their income from real estate rentals or sales, and their "principal business operations" (where employees work or payroll is generated) must be in Wisconsin. The bill also establishes an overall limit on the total amount of these credits that can be issued annually, with separate allocations for investments in rural and metro counties, and includes provisions for recapturing the credit if certain conditions are not met, such as the community development entity failing to invest the funds appropriately or redeeming the investment prematurely. Additionally, the bill amends existing statutes to incorporate this new credit into the calculation of taxes and fees owed by insurers.

Budget and Finance

https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab676