Wisconsin’s Early-Stage Business Investment Program and Qualified New Business Venture Program (QNBV) work together to spur investment in early-stage Wisconsin businesses with the potential for significant economic impact and job growth. The programs are as simple as they are effective, creating mutually beneficial outcomes for investors, businesses and Wisconsin’s economy.
Early-stage businesses developing innovative products, processes or services may be designated as QNBVs. Investments in QNBVs made by angel investors, angel investment networks and qualified venture capital funds are eligible to receive a tax credit equal to 25 percent of the amount of the equity investment through the Early-Stage Business Investment Program.
To achieve QNBV certification, companies must meet the following criteria:
With a focus on technological advancements, QNBV certification does not apply to companies primarily engaged in real estate development; insurance; banking; lending lobbying; political consulting; professional services; wholesale or retail trade; leisure; hospitality; transportation; or construction (except the construction of power production plants that derive energy from a renewable resource).
Businesses can receive up to a total of $8 million in tax-eligible cash equity investment (up to $2 million in tax credits for the investors). There is no limit on the amount of credits investors can claim.
Investments must be:
The following will not qualify for tax credits:
*The Wisconsin Economic Development Corporation (WEDC) does not endorse the quality of management or the potential for earnings for 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 WEDC.
**Certification of a fund by WEDC is not an endorsement of the quality of management of that fund. WEDC is not liable for damages or losses to an investor.