THU AM News: Backers of incentive package for biofuels plant propose pared back state help; WMC Foundation report says state is ‘falling behind’

February 5, 2026

— Backers of an incentive package to draw a German aviation biofuel plant to northern Wisconsin have proposed paring it back to $120 million in state assistance from their original call of $210 million.

Bill sponsor and Senate President Mary Felzkowski, R-Tomahawk, told WisPolitics that lawmakers dropped a proposed grant that would be paid for by state bonds from AB 619 due to a lack of buy-in from Assembly Speaker Robin Vos, R-Rochester.

Instead, the amendment would double the amount of Wisconsin Economic Development Corporation-issued tax credits available to the project to $120 million. It also would extend the window of eligibility for the tax credits to 20 years from 12.

During a public hearing before the Assembly Ways and Means Committee, Felzkowski and Rep. Chanz Green, R-Grand View, framed the bill as an economic lifeline to aging and shrinking communities in northern Wisconsin, citing the 150 jobs the plant would bring as well as the boost to industries like construction and logging and demands for new grid transmission capacity.

Green said the economic boom would also help promote active management of northern forests, which are threatened by pests, invasive plants and other risk factors.

Defending the reduced-but-still-substantial price tag, Felzkowski predicted the funds would wind up in northern Wisconsin one way or another.

“You’re going to spend it on economic development, or you’re going to spend it on invasive species control and you’re going to spend it on wildfires,” she said.

Under the substitute amendment introduced this week, tax break recipients would have to provide documents to WEDC showing the project is economically viable.

Lawmakers are hoping to draw a $1.5 billion Synthec Fuels plant to Hayward, in Sawyer County, that would convert low-quality wood into sustainable aviation fuel, which they note is increasingly in demand by international air carriers to comply with European Union and United Kingdom regulations.

Wisconsin is competing for the proposed plant with Minnesota, which has called for a mix of tax credits and grants to draw Synthec to Hibbing, Minnesota.

A spokesperson for the Minnesota Department of Employment and Economic Development confirmed the business could receive $111 million in loans and statutory business tax exemptions if the plant were set up in northern Minnesota.

Bill Johnson Jr., president of Johnson Timber, which would partner with Synthec Fuels and process the timber for the plant, testified in favor of the bill, as did representatives from the Farm Bureau, carpenters union, Hayward Area Chamber of Commerce and the Sawyer County Economic Development Corporation.

Apart from the public hearing, the Ways and Means Committee in executive session also voted unanimously to approve an amended version of AB 657, which creates a sales and use tax exemption for nuclear fusion technology projects. The amendment would expand the tax exemption to cover “tangible personal property” used exclusively for the fusion project and sunsets the exemption on Dec. 31, 2076.

— Wisconsin Manufacturers & Commerce has issued a policy document that argues the state is falling behind due to “burdensome” regulation and a tax climate in need of reform.

The group’s WMC Foundation is calling for “reforming” the tax code, controlling unaffordable health care costs, equipping schools to help students find a career pathway and enacting “smart policy” to bring in new residents.

While the Wisconsin Competitiveness Report points to broader trends such as the state’s aging population, fewer young people in Wisconsin and falling labor force participation, it also slams a number of proposals from the Evers administration, calling them harmful to the state.

The report is described as a “blueprint for the next governor,” in a release.

“Unfortunately, recent proposals from Governor Tony Evers and certain lawmakers have introduced uncertainty and potential financial strain on manufacturers and businesses across the state, which would, in turn, harm families trying to make ends meet,” authors wrote.

The report says Evers has sought to reduce the state’s Manufacturing & Agriculture Tax Credit, arguing doing so would lead to higher costs for businesses and ultimately higher prices for consumers. The group also says Evers’ latest budget proposal aimed to “double the energy tax” on heating and electric bills.

“These proposals risk making Wisconsin less attractive for investment and expansion,” authors wrote.

The wide-ranging policy document covers education, health care, property taxes, the state’s regulatory environment and more.

“Wisconsin has to decide whether it wants to be a state that rolls out the red carpet or red tape for families and businesses,” WMC President and CEO Kurt Bauer said in a statement. “Despite the clear and present danger our state faces, for the last eight years, we have witnessed leaders implement destructive policies.”

Evers’ office did not immediately respond to a request for comment.

See the report and release.

— Wisconsin is one of four states in the U.S. where cryptocurrency staking is not legal. A new bill seeks to change that.

AB 892, introduced by Rep. Adam Neylon, R-Pewaukee, would permit Wisconsinites to participate in proof-of-stake networks, something legal in every state except California, Maryland, New Jersey and Wisconsin.

“This bill is trying to address a real-world problem, which is in Wisconsin we have potential rewards being missed to the tune of over $4 million dollars — and that’s taxable income that both people in Wisconsin are missing out on and the state is missing out on in terms of taxable revenue,” Neylon told State Affairs in an interview. “And that number just keeps going up every day. It’s becoming an urgent problem.”

Staking allows crypto holders to lock, or commit, their virtual currency tokens to a blockchain that in turn validates transactions and secures the network. In exchange for participating on the blockchain, the holders of the crypto are offered opportunities to collect rewards, similar to earning interest on a savings account or receiving a stock dividend.

Users always have full control over their own coins. The blockchain is the infrastructure, and staking is what helps keep it running smoothly.

Cryptocurrency blockchains can also be built through mining, such as bitcoin mining, where computers are used to solve complex equations to secure the chain. This takes a tremendous amount of energy, which has raised environmental concerns among some who say staking is a better option. How the blockchain is built and certified is dependent on the token.

The bill would put language into law to make clear that proof-of-staking is a service, not a security, mirroring guidance released in May by the U.S. Securities and Exchange Commission.

Robin Cook, director of U.S. policy at Coinbase, testified in support of AB 892 at an Assembly Committee on Science, Technology, and AI hearing Tuesday.

Cook said more than 52 million Americans use cryptocurrency — 1 in 5 adults — including roughly 16% of Wisconsinites.

“It’s not a fringe technology,” Cook said, noting the company’s support for clear regulation. “It’s already here, and it’s integrated into the financial system through things like real-time payments, small business finance and secure digital infrastructure.”

Cook said while “the committee cares rightly about consumer harm,” in the more than six years that Coinbase has offered the staking service, no Coinbase customer has ever lost assets through its staking service, and, globally, losses due to penalties are “exceedingly rare.”

Cook said Coinbase found that, statistically, a person is six times more likely to be struck by lightning than to lose assets due to a staking penalty.

“There’s no consumer harm that’s at stake here,” Cook said. “There is consumer harm when access is denied. Wisconsinites have missed out on more than $4 million just through Coinbase by having these services unavailable here. That’s money that was not given to the pockets of actual voters and consumers all over this state. This isn’t consumer protection; it’s consumer exclusion.”

Several others at Tuesday’s hearing spoke in favor of the bill. One person voiced opposition: Lorenzo Cruz, vice president of government relations at the Wisconsin Bankers Association, who asked the committee to “carefully consider the implications of this bill and to oppose AB 892.”

Cruz expressed concerns over the bill no longer classifying staking as a security and thus no longer having it fall under the state’s securities law.

“While the goal of encouraging technological innovation is understandable, the bill raises concerns regarding consumer protection and regulatory consistency,” he said.

See more from State Affairs.

— Eighteen companies are getting awards through the state’s Innovation to Commercialization Pipeline, including one of the projects in the Wisconsin Biohealth Tech Hub.

Forward BIOLABS and BioForward Wisconsin recently announced the list of awardees, which includes companies in the life sciences, medical devices, pharmaceuticals and other industries within Wisconsin’s biohealth sector.

Each recipient is getting between $25,000 and $75,000 for commercialization efforts, a spokesperson for Madison-based Forward BIOLABS said. That means these companies have been awarded between $450,000 and $1.35 million in total funding.

Jessica Martin Eckerly, the group’s CEO and co-founder, says this first round of funding “marks an important milestone for the program” as it supports companies’ efforts to address business risk and prepare for investment. The next round of ICP funding will happen this year.

One of the recipient companies, Sonoptima, is developing a wearable ultrasound device used in radiation therapy. CEO Michael Sealander says the ICP funding will support the company’s regulatory strategy as it prepares for an upcoming FDA submission.

“As we continue advancing our medical device, the ICP award is also enabling us to implement a strong intellectual property strategy to expand our market opportunity and enhance our attractiveness to investors and partners,” he said in the announcement.

See the full list of awardees in the release.

— The State Building Commission has approved $205.7 million in construction work around Wisconsin, including new Universities of Wisconsin facilities and projects at state agencies.

Those include a construction and expansion effort for the Department of Corrections’ Wisconsin Secure Program Facility, replacing an emergency generator for the Department of Military Affairs and building a new boat launch for the Department of Natural Resources.

For the UW, the commission approved a library “facility renewal” project at UW-Oshkosh as well as repairs at UW-Milwaukee’s Chapman Hall.

See more approved projects in the release.

Editor’s note: The following is an excerpt from a WisBusiness column by Buckley Brinkman, advisor to the Wisconsin Center for Manufacturing and Productivity.

— Artificial intelligence will play a major role in many organizations’ futures. The efficiencies and creativity unleashed with this technology will transform our economy, our companies, and the way we work. We must find ways to take advantage of AI to remain competitive.

An interesting study from The Brookings Institute — “Mapping the AI economy: Which regions are ready for the next technology leap?” — suggests that Wisconsin may have missed the bus when it comes to being a leader in AI technology. The study looks at 387 communities across the country and assesses each against 14 indicators to determine AI readiness. Against these measures, Wisconsin is a clear laggard.

Brookings divides these communities into six groups: Superstars, Star Hubs, Emerging Centers, Focused Movers, Nascent Adopters, and Other Communities. Unfortunately, Wisconsin does not measure up. Appleton, Milwaukee, and Madison all fall short; with none of the cities in the top two categories and only Madison cracks the top three. Appleton and Milwaukee are in the bottom two categories.

Read the full column here.

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