Relating to: creating a tax credit for insurers for certain investments in community development entities. (FE)

AB 676 creates a tax credit for Wisconsin insurers who invest in community development entities (CDEs) that fund qualifying low-income community businesses. Insurers can claim a 10% credit (after an initial 0% period) against certain insurance regulatory fees for investments in CDEs that deploy capital to businesses with principal operations in Wisconsin - $125 million allocated for rural counties and $125 million for metro counties. The credit applies to investments meeting specific criteria, such as funding businesses with at least 60% of operations in Wisconsin and excluding those deriving significant income from real estate. This policy directly affects insurers and CDEs by incentivizing capital deployment to underserved communities through a structured, state-funded tax credit mechanism.