A panel that included two state legislators said Tuesday at the monthly WIN luncheon at the Sheraton Hotel that Wisconsin would benefit as a whole if the ceiling on investor tax credits was raised.
“The most important thing we can do as legislators is to make sure we have stable financial footing in the state,” Sen. Tom Tiffany (R-Hazelhurst) said. “It’s important for all of us to look at how we can benefit the entire state.”
Act 255, also known as the Qualified New Business Venture program, provides investors a tax credit of up to 25 percent of the value of the investment they make in a Wisconsin-based company. Though investors have no limit to the number of credits they can claim, companies are capped at $8 million in tax-eligible cash equity investments.
The panel explained how the program especially helps emerging companies, such as Tai Diagnostics, that require a long runway before making any revenue. These companies also spend money on suppliers scattered throughout the state.
“The investment tax credits to date have been very important to us,” Tai Diagnostics CEO Frank Langley said. He explained that a single study can cost his biotech company $5 million. Read the full story here.