Early-stage businesses conducting pre-commercialization activity related to proprietary technology may be designated as Qualified New Business Ventures. This designation may assist businesses in their efforts to attract investors by making state tax credits available to individuals and groups investing in these businesses.

A business may be designated as a Qualified New Business Venture if it meets the following criteria:

• The business must be engaged in, or must have committed to engage in, one of the following:
  1. Developing a new product or business process
  2. Manufacturing, agriculture or processing of assembly products and conducting research and development.
• Businesses engaged in real estate development, insurance, banking, lending, lobbying, political consultation, professional services provided by attorneys, accountants, business consultants, physicians or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction are not eligible for the program.

Qualified New Business Ventures will be certified by Commerce on an annual basis. Businesses wishing to continue their certification in the program must submit applications annually.

Businesses can receive up to $4 million in tax credit-eligible, cash equity investment, of which no more than $1 million in tax credit-eligible investment can come from angel investors.

For a list of the Qualified New Business Ventures visit commerce.wi.gov/Act255/BD-Act255-CertifiedQNBVs.html.

For more information about Qualified New Business Ventures, and prior to submitting an application, please contact:
Amy Cumblad
608/266-2688
acumblad@commerce.state.wi.us

Note: The State of Wisconsin does not endorse the quality of management or the potential for earnings of the certified Qualified New Business Venture. Furthermore, the Qualified New Business Venture's use of the phrase "certified" and/or "qualified new business venture" is not a recommendation or endorsement of the investment or the company by the Wisconsin Department of Commerce. Certification of a fund by the Department of Commerce is not an endorsement of the quality of management of that fund. The Department of Commerce is not liable for damages or losses to an investor.

-- Amy Cumblad

The newsletter is issued electronically every other month.

Please send comments or questions to Barbro McGinn, editor.