- 2026 LEGISLATURE LRBa0597/1LRB-2765/1 JK:ajkJK:ajk&cdc ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 566 NovemberOctober 5,24, 2025 - OfferedIntroduced by RepresentatiITTKE.Representatives W ITTKE, MOSES , ARMSTRONG , G OODWIN , O'CONNOR and W ICHGERS , cosponsored by Senators F EYEN, SPREITZER and R OYS.

AtReferred theto locationsCommittee indicated,on amendState theAffairs. bill as follows:

A N A CT to amend 71.07 (5d) (a) 1.

Page(intro.); 2, line 9:

deleteto Xbycreate ruleY71.07 and(5b) substitute(a) Xby3., ruleY.71.28 (5b) (a) 3.

2.and 71.47 (5b) (a) 3.

Pageof 3,the linestatutes; 2:

deleterelating X2025Yto: and substitute X2026Y.

qualifying investments for purposes of claiming the early stage seed investment and angel investment credits.

Analysis by the Legislative Reference Bureau Current law allows an individual to claim an income tax credit equal to 25 percent of the individual’s bona fide angel investment in a qualified new business venture certified by the Wisconsin Economic Development Corporation.

“Bona fide angel investment” is defined as the purchase of an equity interest or any other expenditure, as determined by rule.

This bill modifies that definition to include a convertible instrument such as a convertible note or a simple agreement for future equity.

Current law allows a person to claim the early stage seed investment tax credit equal to 25 percent of the person’s investment paid to a fund manager that the fund manager invests in a qualified new business venture certified by WEDC.

Under the bill, “investment” is defined as a purchase of an equity interest, a convertible instrument such as a convertible note or a simple agreement for future equity, or any other expenditure, as determined by WEDC.

- 2026 Legislature - 2 - LRB-2765/1 JK:ajk&cdc ASSEMBLY BILL 566 SECTION 1 For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

S ECTION 1.

71.07 (5b) (a) 3.

of the statutes is created to read:

71.07 (5b) (a) 3.

“Investment” means a purchase of an equity interest, a convertible instrument such as a convertible note or a simple agreement for future equity, or any other expenditure, as determined by the Wisconsin Economic Development Corporation under s.

238.15.

S ECTION 2.

71.07 (5d) (a) 1.

(intro.) of the statutes is amended to read:

71.07 (5d) (a) 1.

(intro.) “Bona fide angel investment” means a purchase of an equity interest, a convertible instrument such as a convertible note or a simple agreement for future equity, or any other expenditure, as determined by rule under s.

238.15 or s.

560.205, 2009 stats., that is made by any of the following:

S ECTION 3.

71.28 (5b) (a) 3.

of the statutes is created to read:

71.28 (5b) (a) 3.

“Investment” means a purchase of an equity interest, a convertible instrument such as a convertible note or a simple agreement for future equity, or any other expenditure, as determined by the Wisconsin Economic Development Corporation under s.

238.15.

S ECTION 4.

71.47 (5b) (a) 3.

of the statutes is created to read:

71.47 (5b) (a) 3.

“Investment” means a purchase of an equity interest, a convertible instrument such as a convertible note or a simple agreement for future equity, or any other expenditure, as determined by the Wisconsin Economic Development Corporation under s.