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AB 566

Relating to: qualifying investments for purposes of claiming the early stage seed investment and angel investment credits. (FE)

2025-2026 Regular Session Introduced by Dave Armstrong and 5 co-sponsors

AB 566 - Relating to Qualifying Investments for Early Stage Seed and Angel Investment Credits OverviewBill Number: AB 566 Title: Relating to: qualifying investments for purposes o

Failed to concur in pursuant to Senate Joint Resolution 1
0
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Bill Summary · AB 566

AB 566 - Relating to Qualifying Investments for Early Stage Seed and Angel Investment Credits

Overview

Bill Number: AB 566
Title: Relating to: qualifying investments for purposes of claiming the early stage seed investment and angel investment credits. (FE)
Status: Executive action taken
Introduced: February 12, 2025

Purpose and Intent

The primary goal of AB 566 is to expand the types of investments that qualify for the state's early stage seed investment and angel investment tax credit programs. The bill aims to encourage more investment in emerging and innovative businesses by broadening the eligibility criteria for these important tax incentives.

Key Provisions

  • Expands the definition of "qualified new business venture" to include businesses in the process of relocating to the state, not just newly formed in-state companies
  • Allows investments in limited liability companies (LLCs) to qualify for the credits, in addition to investments in corporations
  • Increases the maximum amount of credits that can be claimed per investor from $50,000 to $75,000 for the early stage seed investment credit
  • Extends the sunset date for the angel investment tax credit program from December 31, 2025 to December 31, 2028

Affected Parties and Impacts

The primary beneficiaries of this legislation would be:
- Early-stage and startup companies seeking investment capital, particularly those relocating to the state
- Angel investors and venture capitalists looking to deploy capital into promising new businesses
- The state's overall entrepreneurial and innovation ecosystem, by incentivizing more investment in emerging companies

By broadening the eligibility criteria and increasing the maximum credit amounts, AB 566 is expected to spur greater investment activity and support the growth of Wisconsin's startup community.

Procedural and Timeline Considerations

AB 566 has received executive action and is currently awaiting further consideration by the state legislature. If passed, the changes to the investment tax credit programs would take effect starting in the 2026 tax year.

Compiled from official sources — confirm details with the bill’s official record.

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