24 Aug Suggestions offered to foster high-growth business investment
A group of business investors and government representatives have suggested a series of changes to Wisconsin Act 255 that was enacted to stimulate investments in high-growth industries.
Their suggestions were made to a state Senate committee on Wednesday. For more on that hearing, read:
• Regulations still stymie business investment in high-growth companies
Following is a list of some of the key recommendations:
• Increasing from $30 million to $60 million the available investment tax credits for angel investors;
• Increasing from $3 million to $6 million the annual allocation of investment tax credits;
• Permitting unused Venture Capital Investment Credits to be reallocation to Angel Investment Tax Credits in the succeeding year and, likewise, permit unused Angel Investment Tax Credits to be reallocation to Venture Capital Investment Tax Credits in the succeeding year;
• Increasing the capital gains exemption to $100 percent for farmers, small business owners and investors who invest a long-term capital gain in a Wisconsin business or investment;
• Increasing to 100 from 25 the number of security holders permitted under Wisconsin Statute 551.23(10), which Grosenheider said currently increase risk by concentrating it in fewer investors;
• Increasing to 300 from the current 25 the number of offers permitted for the exemption in Wisconsin Statute 551.23(11), which Grosenheider said currently limits networking that fosters business investment;
• Increasing to $50 million from the current $5 million the maximum offering amount that can be raised from investors under the existing Wisconsin-Issuer-Registration-Exemption-by-Filing provision in Wisconsin Department of Financial Institutions rules – an increase which would acknowledge the increased cost of starting a new business;
• Repealing the shareholder age lien statute, which Grosenheider and Hildebrandt said puts investors in “double jeopardy” by imposing unfair liability risks upon them.