By Brian E. Clark
WisBusiness.com
MADISON – Would-be investors, entrepreneurs, dreamers and small business operators will have one last chance to tell the state’s Commerce Department how they would like the rules governing a new tax-credit package to be written.
The final listening session on Act 255 – designed primarily to leverage seed capital for the state’s technology start-ups – will be held at 10 a.m. Thursday at the MGE Innovation Center, 510 Charmany Drive. Other meetings were held earlier this month in Milwaukee, Chippewa Falls and Appleton.
The legislation passed the Legislature this spring, thanks in large part to the efforts of Sen. Ted Kanavas, R-Brookfield, and Commerce Secretary Cory Nettles. It will go into effect Jan. 1, 2005.
The act has been praised by business leaders who say that Wisconsin’s special tax credits for expanding or attracting traditional companies to the state don’t do enough for high-tech or biotech firms.
According to the Commerce Department, the bill gives tax breaks to “angel” investors – who are often the first on board and take the biggest risks. It also creates a technology grant and loan program and sets up entrepreneurial centers in several Wisconsin cities.
Kanavas, an entrepreneur who has created and run technology companies, said all he is hoping for is “a little common sense” when the regulations are written.
“We want emergency rules to come out quickly that will allow us to get credits in the hands of business people who will use them,” he said. “Then we can have legislative review come January.”
Tony Hozeny, a spokesman for the Commerce Department, said his agency wants to hear from investors and entrepreneurs so the department can implement the legislation smoothly and help investors get more bang for their buck.
“We want to generate new investment in small, fast-growing companies,” he said. “We want help in writing these rules from the people who will use this program.”
Kanavas said he is especially keen on having small business owners participate.
“In addition to investors, we want the input of entrepreneurs and other people who are on the ground,” he said.
Act 255 features a 25 percent state tax credit, which Kanavas and Nettles hope will tempt investors into taking the risk of backing a risky start-up company.
The law also features $30 million in tax breaks over a decade for so-called angel investors and $35 million for professionally managed investment funds that support new ventures.
“I’m excited about this program,” said Kanavas. “I want it to work and encourage people to invest in Wisconsin.”
