Madison tech company qualified for investor tax credits

The Capital Times —  6/26/2008 8:22 pm

Perscitus Biosciences LLC of Madison is one of two companies the state Department of Commerce has qualified for investor tax credits under the Angel Investor and Venture Fund Tax Credit programs.

The Angel Investor and Venture Fund Tax Credit programs offer Wisconsin income tax credits to angel investors and investors in seed-stage venture capital funds. The programs are designed to increase the supply of both qualified angel investors and investors in qualified venture capital funds. The tax credits are available only for investments made in technology businesses qualified by the state.

"Spurring more venture capital investment is essential to the state's economic growth," Gov. Jim Doyle said in a statement. "By encouraging investors to make crucial investments, we are turning great ideas into viable, job-creating businesses. "

Founded in 2006, Perscitus is developing and commercializing a novel chemoprotectant molecule and a protein assay. The molecule has shown an ability to protect healthy human cells against the harmful effects of chemotherapy and radiation. The assay allows researchers to accelerate the identification of unknown binding proteins. To learn more, go to www.perscitusbio.com.

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Doyle aims to help tech firms

By Judy Newman
608-252-6156
January 8, 2008

More tax breaks and more state funding — those are some of the tools Gov. Jim Doyle will recommend as a way to encourage investment in young technology companies.

Doyle told a meeting Monday of the steering committee of Thrive, the economic development arm for the eight-county Madison region, that he is proposing a plan called Accelerate Wisconsin.

"My vision is for Wisconsin companies to have access to the capital they need to flourish," Doyle said.

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Stem-cell firm gets big boost

Stem-cell firm gets big boost
00:00 am 9/27/05
JUDY NEWMAN jdnewman@madison.com

Cellular Dynamics International - the young company founded by UW-Madison stem- cell research pioneer Jamie Thomson and his partners - is getting a $2 million jump-start from the state.

Using the announcement Monday as both a political statement and an economic growth message, Gov. Jim Doyle said the state is providing a $1 million grant and a $1 million loan to the Madison company. Coupled with $4 million in private investment, Cellular Dynamics plans to use the technology to screen for drugs for heart patients, starting as soon as early 2006.


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State tech firms gain tax equity in budget

State tech firms gain tax equity in budget

The Capital Times
July 27, 2005

The state budget signed into law Monday by Gov. Jim Doyle puts technology companies on equal footing with other businesses by extending the so-called single-sales factor tax treatment to tech firms.

Two years ago, the state began a phase-in of the single-sales factor tax treatment for firms in other business sectors, such as manufacturing.

Under current state law, Wisconsin-based tech companies face the threat of double taxation when they make sales outside Wisconsin: By Wisconsin, which has treated out-of-state sales as Wisconsin sales, and by the destination state. A Wisconsin firm's corporate income tax has been determined using a formula that included the value of in-state property and payroll, as well as sales.

Starting with this year, revenues from the licensing of computer software and services will be treated as Wisconsin revenue only if the purchaser of the software or services uses them in Wisconsin.


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Cigarette tax just the start, some say

Cigarette tax just the start, some say
But state denies it would seek to collect taxes from other products bought over the Internet
By PATRICK MARLEY
pmarley@journalsentinel.com
Posted: July 20, 2005

Madison - The state's pursuit of more than $1 million in back taxes and penalties from online cigarette customers could hint at the Department of Revenue's plans to go after taxes on computers, books and other goods bought over the Internet, tax attorneys and analysts said Wednesday.

Department of Revenue officials disputed that speculation, saying they would pursue only online cigarette customers.

They also said Wednesday that they recently received lists of Wisconsin customers from four more such businesses that would generate at least $2 million more in tax bills.

With people increasingly buying products online without paying the state sales tax, experts said the department would soon seek ways to collect those funds.

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States Move Forward on Internet Sales Tax

States Move Forward on Internet Sales Tax

By Brian Krebs
washingtonpost.com Staff Writer
Friday, July 1, 2005; 4:02 PM

Tax officials, state lawmakers and industry representatives agreed Thursday to establish an 18-state network for collecting taxes on Internet sales, a compact they hope will encourage online retailers and Congress to endorse a mandatory national program.

Meeting in Chicago under the auspices of the Streamlined Sales Tax Project, the officials agreed that 11 states will oversee the project and outlined incentives to encourage retailers to participate. Forty states have been negotiating since 2000 to create a framework for collecting sales taxes on all remote transactions, whether through regular mail or online.

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Majority of states pressing for taxing all Internet sales

Majority of states pressing for taxing all Internet sales
written by: Paola Farer Web Producer
reported by: Mark Koebrich 9NEWS Consumer Reporter

Created: 6/3/2005 4:52 PM MDT - Updated: 6/4/2005 4:46 PM MDT

DENVER - 9News has learned that 43 states have joined together in a coalition to collect sales tax on all Internet purchases.

You already pay sales tax when you go online to buy from an established business like Eddie Bauer or Wal-Mart. But a lot of small Internet businesses and individual transactions float under the radar.

The coalition is seeking expertise from Colorado's high tech industry to get the tax collection done electronically.

"The Internet Tax Freedom Act says that states cannot treat sales on the Internet differently than they treat any other kind of sale--and this system that we've created does exactly that," says Scott Peterson with the Conforming States Committee, which is spearheading the effort.

"It treats every sale exactly the same regardless if it's over the counter, over the catalogue, over the phone or over the Internet," he says.

The states say they've been losing as much as $16 billion annually to the Internet. They say that new software will make collecting the money almost automatic and that they can have a system in place by Oct. 1.

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WI Joint Finance Committee Rejects Tax on Internet Downloads

Budget committee rejects tax on Internet downloads
Associated Press

MADISON, Wis. (AP) - The Legislature's budget committee Tuesday rejected the governor's plan to begin taxing music, movies and books downloaded from the Internet, a proposal that could have cost Wisconsin consumers an additional $1.3 million over the next two years.

The Joint Finance Committee also dumped Gov. Jim Doyle's plan to change Wisconsin's sales tax code to join a national effort to make sales and use taxes more uniform. Approving the change could have cost consumers $19.1 million more over the next two years.

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Senate Republicans set high-tech policy goals

Senate Republicans set high-tech policy goals
Permanent Internet tax moratorium and R&D tax credit on the list

By Grant Gross, IDG News Service
March 09, 2005

U.S. Senate Republicans want to pass patent reform, a permanent Internet tax moratorium and a permanent research and development tax credit in the next two years, members of the Senate Republican High Tech Task Force (HTTF) said Wednesday.

Congress also must encourage math and science education, pass a spyware penalties law and delay a proposal that would require U.S. companies to expense stock options, said 11 Republican senators from the task force, including Senate Majority Leader Bill Frist of Tennessee, who attended a press conference in Washington, D.C.

Republicans enjoy majorities in both the Senate and the House of Representatives, and HTTF members said they will work hard to push their 40-item agenda through Congress. The group hailed the IT industry as a major driver of the U.S. economy, with Frist saying two out of three U.S. jobs in the future will be related to technology.

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Doyle proposes sales tax on Internet downloads

Doyle proposes sales tax on Internet downloads
Republicans vow to delete provision in governor's budget plan
By STEVEN WALTERS
swalters@journalsentinel.com
Posted: March 7, 2005

Madison - Gov. Jim Doyle wants you to pay Wisconsin's 5% sales tax whenever you pay to download a song, book, movie or piece of art.

A little-noticed provision of the Democratic governor's proposed state budget would extend the sales tax to those Internet transactions, officials said Monday. There would be no Internet sales tax police, however, because compliance would be on the honor system.

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WI Follows MI in Internet Cigarette Tax Crackdown

Doyle targets cigarette sales over the Internet
By STEVEN WALTERS
swalters@journalsentinel.com
Posted: Feb. 27, 2005
Madison - Gov. Jim Doyle wants to crack down on Internet sellers of cigarettes, which Wisconsin officials say are not paying the 77-cent state tax on a pack of cigarettes and may be illegally selling to minors.

Lobbyists for grocers and convenience stores say they've been pushing for years for some type of state crackdown on Internet sellers who undercut their tobacco prices and mail directly to Wisconsin smokers. They said they are pleased that Doyle included changes in state law as part of his 2005-'07 budget.

"There are hundreds - probably over 1,000 - Internet sites that compete with lawful bricks-and-mortar retailers," said Bob Bartlett, president of the Wisconsin Association of Convenience Stores.

"Many of these out-of-state Internet sites charge no state excise taxes or have no quality age verification to prevent underage sales," he said.

"On behalf of over 2,500 retailers, we support putting a stop to this tax evasion."

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Earlier story on Michigan's Crackdown.

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Michigan Bills Smokers Who Avoided Sales Tax Via Internet

State nails smokers who didn't pay taxes

Bills are sent for cigarettes bought online; at least $1.7 million owed

February 18, 2005

BY CHRIS CHRISTOFF and TAMARA AUDI
FREE PRESS STAFF WRITERS

Smokers who have bought cigarettes online are starting to get notices from the state to pay up the $2-per-pack cigarette tax they avoided.

A Canton woman who got a state bill last weekend for $2,500 in back cigarette taxes is among the bulk cigarette buyers learning that avoiding taxes -- the state can go back up to four years -- can be expensive in the long run.

The state's lost tax dollars were estimated at $1.7 million from just one of 13 online cigarette retailers.

In a bold push to catch tax scofflaws, the state Treasury Department has subpoenaed the online retailers in other states to get the names, addresses and purchase records of Michiganders who bought cigarettes from them. In virtually all cases, such sales do not include the cigarette tax that must be paid to the state, regardless of who the seller is or how much is purchased.

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Internet Sales Tax Proposal Revived in Wisconsin

Internet sales tax idea back again
Online collections rejected last year
By AVRUM D. LANK
alank@journalsentinel.com
Posted: Feb. 14, 2005

A proposal to make it easier for Wisconsin to collect sales tax on mail-order and Internet transactions has resurfaced in Gov. Jim Doyle's proposed budget for the next biennium.

Supporters say the legislation is needed to put local merchants on an equal footing with so-called e-tailers, while opponents attack the measure as a stealth tax increase.

A similar proposal that Wisconsin join the Streamlined Sales Tax Project failed in the last session of the Legislature.

"It is a way to raise taxes without calling it a tax increase," said state Sen. Ted Kanavas (R-Brookfield), who was instrumental in killing the proposal last time.

State Revenue Secretary Michael Morgan disagrees. While the proposal will result in more money flowing to the state, its primary purpose is "to ensure that retailers that sell books and records and other retail items on Main Street are not put at a competitive disadvantage because of the way we collect taxes on sales made over the Internet," he said.

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Bids Sought For 'Net Sales Tax Systems

Bids Sought For 'Net Sales Tax Systems

By Brian Krebs
washingtonpost.com Staff Writer
Friday, January 28, 2005; 9:09 AM

State governments working on a national Internet sales tax system are moving ahead with plans to create the data infrastructure that they and retailers will need to manage the collection of taxes on most e-commerce transactions.

Working together under the auspices of the Streamlined Sales Tax Project, 40 states and the District of Columbia have issued two requests for bids from technology companies to design the software and Web-based networks to track millions of online purchases and process the appropriate sales tax payments.

Full story.
Related WI Legislators Press Release Regarding Governor's Plan to Tax Internet


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Lawmaker to push tougher version of property tax limits

By PATRICK MARLEY and STEVEN WALTERS
pmarley@journalsentinel.com
Posted: Dec. 21, 2004

Madison - One of the main backers of a so-called taxpayer bill of rights unveiled a strict version of the proposal Tuesday, saying he was prepared for a "brutal" fight with some of his Republican colleagues who favor a softer approach to spending limits.

Rep. Frank Lasee (R-Bellevue) said a constitutional amendment with tougher limits than those proposed in summer was needed because government spending is out of line.

The issue was dropped in summer mainly because Republican lawmakers couldn't agree on a method to limit taxes. One casualty of the impasse was then-Senate Majority Leader Mary Panzer (R-West Bend), who lost her re-election bid in fall to a fellow Republican who accused her of being soft on taxes.

"We have moderate to liberal Republicans who look at this in terms of protecting the government from the people who pay the bills, and I look at this as protecting the people who pay the bills from the government," Lasee said.

If his proposed limits had been enacted a dozen years ago, they would have forced a spending cut of as much as $1.3 billion, or 11%, from this year's $11.7 billion general fund budget, according to the non-partisan Legislative Fiscal Bureau.

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Temporary rules to allow tax credits

Bill's sponsor targets small state firms and hopes to find big fish
By KATHLEEN GALLAGHER
kgallager@journalsentinel.com
Posted: Dec. 2, 2004

Temporary rules went into effect Thursday for a new state law that provides tax credits for investments in young Wisconsin companies and funding for four regional technology-transfer centers.

The rules maintain the Legislature's intent by ensuring that most of its benefits will flow to small, emerging Wisconsin companies, said Sen. Ted Kanavas (R-Brookfield), who sponsored the original bill.

"We wanted to create a lot of minnows in the stream to see if we can grow some of those minnows into fish, and among the fish we're looking for a whopper - we're looking for that big walleye," Kanavas said.

The Department of Commerce made the temporary rules because the tax credits were scheduled to be effective Jan. 1, but the Legislature would not be meeting before then to approve them, said Cory Nettles, secretary of commerce. The rules are subject to the Legislature's approval.

The state will begin offering in January a 25% tax credit - a dollar-for-dollar reduction of taxes owed - to investors in young, Wisconsin companies deemed qualified for the program by the Department of Commerce.

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Tax Break for Organ Donation

A tax break for your kidney
RACHEL EMMA SILVERMAN, The Wall Street Journal

Wednesday, December 1, 2004

The critical shortage of organs for people awaiting transplants long has vexed policy makers and doctors. Now, an unusual approach is gaining momentum: using the tax code to encourage more people to donate.

The effort started earlier this year when Wisconsin began permitting organ donors to deduct as much as $10,000 for their travel and lodging costs and lost wages. Georgia followed suit in April. At least 10 other states, including New York, New Jersey, Connecticut, Illinois, South Carolina and Minnesota, weighed similar legislation this year and are expected to reintroduce bills next year. Legislators in at least five more states, including California, Utah and Ohio, plan on sponsoring organ-donation deduction bills next year.

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State's Web tax will end

Frederic J. Frommer Associated Press

WASHINGTON - Wisconsin will have to end its tax on Internet connections by November 2006 under a broader bill which will stop states from starting new Internet taxes.

Legislation approved by the House Friday reinstates a moratorium on such taxes, which lapsed last year. The legislation allows the six states that already collect Internet taxes, including Wisconsin, to continue to do so.

But Rep. Jim Sensenbrenner, R-Wis., inserted language that requires Wisconsin to end its 5 percent Internet tax two years from now.

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Congress Poised to Vote on Internet Taxes

Brian Krebs
washingtonpost.com Staff Writer
Wednesday, November 17, 2004; 7:39 PM

Congress is poised to extend a ban on taxing Internet access, a move that would please Internet service providers but possibly cost states millions of dollars in lost revenue.

The bill, sponsored by Sens. George Allen (R-Va.) and Ron Wyden (D-Ore.), would forbid state and local governments from approving new taxes on Internet access until November 2007 and would require most existing taxes to be eliminated during the next two years. It also would ban taxing the Internet backbone, the network that carries online traffic around the world.

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State business taxes below U.S. average

Wisconsin's business taxes are lower than those in 35 other states, based on a new study by the Federal Reserve Bank of Boston that measures more than 15 taxes that can affect corporate profits.

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Higher Sales Tax May Mean More Piracy for Software

Higher sales tax will mean higher piracy level

Kolkata Software and hardware industry associations are apprehensive that the higher the sales tax on packaged software products, the higher will be the piracy level in the country.

Though many state governments have sales tax on off-the-self software products, once the 4% value added tax (VAT) is imposed on software, this could further push up piracy levels.

Nasscom president Kiran Karnik believes the Supreme Court verdict will not have a long term effect, as the government has already decided that the 4% VAT on packaged software will be implemented from the next financial year.

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WI Court Ruling on Modified Software Sales Tax

US state ruling could set precedent on modified apps

A judge's refusal to order the state of Wisconsin to refund $500,000 (£271,000) in sales tax paid by the company on a customised SAP roll out may set a precedent that relieves the state from paying out more than a $250m in refunds to software users.

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NC No Sales Tax Push for Biotech Research

Biotech officials see a push for tax relief

By M. Paul Jackson
JOURNAL REPORTER

Biotechnology officials aim to persuade North Carolina legislators to eliminate the 7 percent sales tax on purchases of research and development equipment, believing that the savings could help them develop the industry.

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New Tax Rules for Intellectual Property Donations

"Corporations have been reducing their tax bill by hundreds of millions of dollars each year by taking intellectual property of little or no value and donating it to a charity," said Sen. Charles Grassley, Republican of Iowa, in a statement. The law "ends this abuse by corporations while still encouraging the donation of legitimate intellectual property that has real value for actual development."

The legislation also requires companies to provide an appraisal for any gifts, including art or other collectibles, worth more than $5,000. Previously, only individuals were required to do so.

Both the intellectual-property and corporate-gift provisions apply to gifts made after June 3, 2004.

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