Wisconsin Angel Investment Tax Credit
Wisconsin Economic Development Corporation (WEDC)
25% of investment; $250K/yr
Wisconsin angel investor tax credit — 25%
Wisconsin's Angel Investment Tax Credit incentivizes early-stage investment in Wisconsin technology and manufacturing startups. Accredited angel investors and angel networks receive a 25% nonrefundable state income tax credit on qualified investments in WEDC-certified early-stage companies. Startups benefit indirectly — the credit makes Wisconsin angels more willing to write checks into early-stage WI companies. Certification is company-side; credit is claimed by investors.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Investors receive a 25% Wisconsin income tax credit on qualified investments. Maximum credit per investor per year: $250,000 (on up to $1,000,000 in qualifying investments). Statewide program cap: $20 million in credits annually (statutory cap under WI Stat. § 71.07(5b)). Credits are non-refundable with 15-year carryforward.
- Realistic amount
- A Wisconsin angel investing $200,000 into a WEDC-certified startup receives a $50,000 state income tax credit. An invest…
- Deadline
- Rolling — WEDC accepts company certification applications year-round. Investment must occur after company is certified.
- Status
- active
- States
- WI
- Payment model
- tax offset
Who qualifies
- INVESTOR eligibility: Must be an accredited investor (SEC definition) or certified angel investment network registered with WEDC
- INVESTOR eligibility: Must invest in a WEDC-certified early-stage company
- INVESTOR eligibility: Must have Wisconsin income tax liability against which to apply the credit (non-refundable)
- COMPANY eligibility: Wisconsin-based for-profit corporation or LLC (must maintain WI operations)
- COMPANY eligibility: In a qualifying industry (technology, manufacturing, life sciences, or other WEDC-approved sector)
- COMPANY eligibility: Have fewer than 100 employees at time of certification
- COMPANY eligibility: Not publicly traded; less than $10 million in annual gross revenue at certification
- COMPANY eligibility: Primary business activities located in Wisconsin
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Equity investments in WEDC-certified early-stage WI companies (cash only)
- Qualified convertible notes that convert to equity in WEDC-certified companies
- Investments through WEDC-registered angel investment networks
Ineligible expenses
- Investments in non-certified WI companies
- Loans that do not convert to equity
- In-kind investments (services, property, IP — cash only)
- Investments in publicly-traded companies
- Investments in companies outside Wisconsin
How to apply
-
1
Company applies for WEDC early-stage certification
Submit company certification application to WEDC. Include: proof of WI incorporation, business plan, industry classification, employee count, revenue history, and technology/product description. WEDC reviews in approximately 30–45 days.
~2 hrs
-
2
WEDC issues certification number
Upon approval, WEDC issues a certification number to the company. This number is given to qualifying investors — they need it to claim the credit.
~2 hrs
-
3
Investor makes qualified investment in certified company
Accredited investor writes check (equity or convertible note qualifying as equity) into the WEDC-certified company. Investment must be cash (not services or property). Maintain documentation of the investment for tax filing.
~2 hrs
-
4
Investor files for credit on WI income tax return
Investor claims the 25% Angel Investment Tax Credit on Wisconsin Schedule VC (Venture Capital Tax Credit). Attach WEDC certification number and investment documentation. Credit applied against WI income tax; unused credit carries forward up to 15 years.
~2 hrs
The startup gets certified; the investor gets the credit. As a WI startup, getting certified is step one — it makes you more attractive to WI angels because their effective check cost is 25% lower. Certification is not highly competitive for qualifying tech/manufacturing companies.
Deadline & timing
Startups must apply for and receive WEDC certification BEFORE an investor can claim the credit on their investment. Company certification applications are reviewed on a rolling basis. Once certified, investors may invest and claim credits without a separate deadline.
Programs that stack well
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.