Wisconsin cleans up Act 255. Law makes incentives work for VC funds

Tax-credit legislation for venture and angel investors has been "cleaned up" to make it more closely follow the original intent.

Act 255 is an incentives package for investors in early-stage companies. Both venture and angel investors can apply for tax credits of 25 percent of their investments in pre-qualified Wisconsin companies. A clean-up bill, signed by the governor on Wednesday, allows groups of investors, some of which might be from out-of-state or have differing tax situations, to more easily split the incentive among themselves.

"If I wasn’t able to do this, I would end up with some investors who could get tax credits, some who couldn’t," said John Neis, a senior partner with Venture Investors. "[In that case] my fiduciary duty requires that I not cosider the tax credits because they don’t benefit everybody."

Jason Stitt

Full Story: http://wistechnology.com/article.php?id=2584