Wisconsin Gov. Signs Bills to Create Start-Ups, Improve Manufacturing Climate

Two legislative bills encompassing economic development priorities of Gov. Jim Doyle’s Grow Wisconsin initiative recently were signed to provide assistance for both entrepreneurs and manufacturers.

Senate Bill 261 creates two tax credit programs to spur investment in start-up companies and fosters a new measure to provide funding and technical assistance to entrepreneurs. To encourage investors to take a chance on new Wisconsin companies, SB 261 offers $65 million in tax credits over the next 10 years. When fully deployed, the credits will leverage more than $260 million of investments from the private sector, Gov. Doyle said. The second part of the act provides $2.6 million for technology commercialization grant and loan programs in order to create a network of assistance centers to support entrepreneurs.

Also signed was Assembly Bill 859, which aims to restore Wisconsin's manufacturing sector. Gov. Doyle noted that the industry has lost more than 84,000 jobs in the last three years. Under the legislation, $1.5 million in funding will be allotted to manufacturing extension programs intended to help to manufacturers modernize and stay competitive.

The Milwaukee Journal-Sentinel reports that SB 261 is much less ambitious than the governor’s original proposal to create a $300 million pool of venture capital for start-ups. To no avail, some legislators had tried for a $75 million expansion program within the bill to give tax subsidies to certified capital companies.

Both of the legislative measures stem from the governor’s request to build a strong venture capital base as part of Grow Wisconsin, a comprehensive plan to improve job training, promote high-tech industries and upgrade manufacturing. The bills are available in their entirety through the Wisconsin State Legislature at: http://www.legis.state.wi.us/