Wisconsin Legislative Council
ACT MEMO
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Prepared by: Audrey Kratz, Legal Intern, and Ethan Lauer, Senior Staff Attorney April 8, 2024
2023 Wisconsin Act 145
[2023 Assembly Bill 933]
Angel Investment Tax Credit
Sales and Transfers
BACKGROUND
The Wisconsin Economic Development Corporation (WEDC) administers a program in which it may
certify a business as a Qualified New Business Venture (QNBV) for purposes of the angel investment tax
credit and the early stage seed investment tax credit.
An angel investment tax credit is a nonrefundable tax credit equal to 25 percent of a claimant’s bona
fide angel investment
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made directly in a QNBV.
An early stage seed investment tax credit is a nonrefundable tax credit equal to 25 percent of a
claimant’s investment paid to a fund manager for investment in a QNBV.
An individual eligible to claim an early stage seed investment tax credit may sell or otherwise transfer
the credit, but not more than once in a 12-month period. Under prior law, an individual eligible to
claim an angel investment tax credit could not sell or otherwise transfer the credit.
2023 WISCONSIN ACT 145
Under 2023 Wisconsin Act 145, a person who is eligible to claim an angel investment tax credit may sell
or otherwise transfer the credit, but not more than once in a 12-month period.
With regard to the restriction on selling or transferring an angel investment tax credit or an early stage
seed investment tax credit more than once in a 12-month period, the act clarifies that this restriction
applies only to an individual credit.
Effective date and initial applicability: Act 145 took effect on March 23, 2024, and initially applies
to an angel investment tax credit that a person is approved by WEDC to claim on that date.
For a full history of the bill, visit the Legislature’s bill history page.
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“Bona fide angel investment” is defined as a purchase of an equity interest or any other expenditure that is made by a
person who reviews new businesses or proposed new businesses for potential investment of the person’s money, or a
network of such persons.