WISCONSIN'S QUALIFIED NEW BUSINESS VENTURE PROGRAM: BUILDING ON THE FOUNDATION TO MAXIMIZE ENTREPRENEURIAL GROWTH

Start-ups are the future of American business and are essential to the nation's transition from a manufacturing to a knowledge economy. A decade ago, the Wisconsin Legislature recognized the importance of start-ups and enacted the Qualified New Business Venture Program ("QNBV program" or "the program"). The QNBV program incentivizes early-stage investments in high-tech businesses through nonrefundable tax credits. While the program has seen some early success, Wisconsin's economy has struggled and job growth has been limited. This Comment analyzes the QNBV program and concludes that the Wisconsin Legislature must update the program to better compete for investment capital and to maximize Wisconsin's entrepreneurial growth potential. This Comment argues that the legislature should update the program by (1) making the tax credits refundable to attract out-of-state investors, (2) providing additional tax credits for investments in accelerators nurturing certified businesses, (3) allowing early-stage businesses in restricted industries to rebut the presumption of disqualification from the QNBV program, and (4) providing additional tax credits for investments in specific industries. While these updates to the program will allow Wisconsin to remain competitive for early-stage investments, this Comment concludes that Wisconsin must undergo a more significant legal and cultural undertaking to create a community that mentors and invests in entrepreneurs.