The Wisconsin Technology Council says a newly enacted law will make it easier for early-stage companies to compete beyond Wisconsin while maintaining a presence in the state.
The new law alters the state’s Qualified New Business Venture program, which provides investors with a 25 percent state tax credit on investments in qualifying companies. One of the conditions for businesses in the program is having at least 51 percent of their employees and a headquarters in Wisconsin, a Tech Council release shows.
If a QNBV business fails to meet this requirement due to a merger or acquisition, it may now be granted a waiver allowing it to remain eligible for certification if it meets certain conditions.
These include: increasing the number of workers it employs in the state following the merger or acquisition; keeping its headquarters in Wisconsin; having at least 51 percent of its employees in Wisconsin within the year after the change; and having state officials determine the merger or acquisition wasn’t done to relocate to another state or otherwise cease “the business’s efforts to further grow and expand” in Wisconsin.
Tech Council President Tom Still is applauding Gov. Tony Evers for signing the bill, saying the change will “keep companies growing in Wisconsin and avoid a risk of them being ‘poached’” by other states.
“Wisconsin companies, particularly those that attract angel and venture capital, cannot compete by doing business in Wisconsin alone,” Still said in the release. “They do business in regional, national and even global arenas, and often need a sales force or other hubs on the ground beyond our borders.”
See the text of the law: https://docs.legis.wisconsin.gov/2021/related/acts/224
–By Alex Moe