A significant number of workers in the area have been permanently laid off.
An employer in the area has given public notice of a plant closing or a substantial reduction in force that will result in a significant number of workers in the area being permanently laid off.
As determined by the department, the area is affected by another factor that indicates the area is a distressed area.
Miscellaneous and administrative expenditures.
In each biennium, the department may expend or encumber up to a total of 1% of the moneys appropriated under s. 20.143 (1) (c)
for that biennium for any of the following:
Evaluations of proposed technical research projects.
Evaluation costs, collection costs, foreclosure costs and other costs associated with administering the loan portfolio under this subchapter, excluding staff salaries.
History: 1999 a. 9
; 2007 a. 20
Wisconsin development fund.
The department may make a grant or loan to an eligible recipient from the appropriations under s. 20.143 (1) (c)
The department shall establish criteria for the award of grants and loans under s. 560.61
, including the types of projects that are eligible for funding and the types of eligible projects that will receive priority.
The department shall actively encourage small businesses to apply for grants and loans under this subchapter by ensuring that there are no undue impediments to their participation and by assisting small businesses in preparing grant and loan applications.
The department shall determine conditions applicable to a grant or loan under s. 560.61
The department may charge a grant or loan recipient an origination fee of not more than 2% of the grant or loan amount if the grant or loan equals or exceeds $100,000. The department shall deposit all origination fees collected under this subsection in the appropriation account under s. 20.143 (1) (gm)
The department shall develop a policy relating to obtaining reimbursement of grants and loans provided under this subchapter. The policy may provide that reimbursement shall be obtained through full repayment of the principal amount of the grant or loan plus interest, through receipt of a share of future profits from or an interest in a product or process, or through any other appropriate means.
The department shall develop procedures related to grants and loans under s. 560.61
for all of the following:
Submitting applications for grants and loans.
The department shall establish and implement procedures for monitoring the use of grants and loans awarded under this subchapter, including procedures for verification of economic growth, job creation and the number and percentage of newly created jobs for which state residents are hired.
The department shall require, as a condition of a grant or loan, that a recipient contribute to a project an amount that is not less than 25% of the amount of the grant or loan.
The department shall encourage small businesses to apply for grants and loans under this subchapter by ensuring that there are no undue impediments to their participation and by actively encouraging small businesses to apply for grants and loans. The department shall do all of the following:
Publish and disseminate information about projects that may be funded by a grant or loan under s. 560.61
and about procedures for applying for grants and loans under s. 560.61
Simplify the application and review procedures for small businesses so that they will not impose unnecessary administrative burdens on small businesses.
Assist small businesses in preparing applications for grants and loans.
TAX INCENTIVES FOR BUSINESS
DEVELOPMENT IN WISCONSIN
Subch. VI of ch. 560 Cross-reference
See also s. Comm 112.01
, Wis. adm. code.
"Business incubator" means a person who operates a facility designed to encourage the growth of new businesses, if at least 2 of the following apply:
Space in the facility is rented at a rate lower than the market rate in the community.
Shared business services are provided in the facility.
Management and technical assistance are available at the facility.
Businesses using the facility may obtain financial capital through a direct relationship with at least one financial institution.
"Development zone program" means the program administered under this subchapter.
Except as provided in par. (b)
, "full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
The department may by rule specify circumstances under which the department may grant exceptions to the requirement under par. (a)
that a full-time job means a job in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, but under no circumstances may a full-time job mean a job in which an individual, as a condition of employment, is required to work less than 37.5 hours per week.
"Local governing body" means the governing body of one or more cities, villages, towns or counties or the elected governing body of a federally recognized American Indian tribe or band in this state.
"Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2)
for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n)
, or in a real work, real pay project position under s. 49.147 (3m)
, a person who is eligible for child care assistance under s. 49.155
, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a dislocated worker, as defined in 29 USC 2801
(9), or a food stamp recipient, if the person has been certified in the manner under 26 USC 51
(d) (13) (A) by a designated local agency, as defined in 26 USC 51
"Metropolitan statistical area" means a federal standard metropolitan statistical area but does not include areas located within Indian reservations.
Except as provided in subd. 2.
, in s. 560.795
, "tax benefits" means the development zones investment credit under ss. 71.07 (2di)
, 71.28 (1di)
, and 71.47 (1di)
and the development zones credit under ss. 71.07 (2dx)
, 71.28 (1dx)
, 71.47 (1dx)
, and 76.636
. With respect to the development opportunity zones under s. 560.795 (1) (e)
, "tax benefits" also means the development zones capital investment credit under ss. 71.07 (2dm)
, 71.28 (1dm)
, and 71.47 (1dm)
Certification for tax benefits. 560.701(1)
Any person may apply to the department on a form prepared by the department for certification under this section. The application shall include all of the following:
The federal tax identification number of the person.
The names and addresses of the locations where the person conducts business and a description of the business activities conducted at those locations.
A description of each eligible activity conducted or proposed to be conducted by the person.
Other information required by the department or the department of revenue.
The department may certify a person who submits an application under sub. (1)
if, after conducting an investigation, the department determines that the person is conducting or intends to conduct at least one eligible activity.
The department shall provide a person certified under this section and the department of revenue with a copy of the certification.
A person certified under this section shall enter into a written contract with the department. The contract shall include provisions that detail all of the following:
A description of each eligible activity being conducted or proposed to be conducted by the person.
Whether any of the eligible activities will occur in an economically distressed area, as designated by the department under s. 560.704 (1)
Whether any of the eligible activities will benefit members of a targeted group, as determined by the department under s. 560.704 (2)
A compliance schedule that includes a sequence of anticipated actions to be taken or goals to be achieved by the person before the person may receive tax benefits under s. 560.703
The reporting requirements with which the person must comply.
If feasible, a determination of the tax benefits the person will be authorized to claim under s. 560.703 (2)
if the person fulfills the terms of the contract.
History: 2009 a. 2
A person who conducts or proposes to conduct any of the following may be certified under s. 560.701 (2)
(1) Job creation project.
A project that creates and maintains for a period of time established by the department by rule full-time jobs in addition to any existing full-time jobs provided by the person.
(2) Capital investment project.
A project that involves a significant investment of capital, as defined by the department by rule under s. 560.706 (2) (b)
, by the person in new equipment, machinery, real property, or depreciable personal property.
(3) Employee training project.
A project that involves significant investments in the training or reeducation of employees, as defined by the department by rule under s. 560.706 (2) (c)
, by the person for the purpose of improving the productivity or competitiveness of the business of the person.
(4) Project related to persons with corporate headquarters in Wisconsin.
A project that will result in the location or retention of a person's corporate headquarters in Wisconsin or that will result in the retention of employees holding full-time jobs in Wisconsin if the person's corporate headquarters are located in Wisconsin.
History: 2009 a. 2
Limits on tax benefits and claiming tax benefits. 560.703(1)(b)
The department may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a)
. The department shall submit with its request a justification for seeking an increase under this paragraph. The joint committee on finance, following its review, may approve or disapprove an increase in the total tax benefits available to be allocated under ss. 560.701
(2) Authority to claim tax benefits.
The department may authorize a person certified under s. 560.701 (2)
to claim tax benefits only after the person has submitted a report to the department that documents to the satisfaction of the department that the person has complied with the terms of the contract under s. 560.701 (3)
and the requirements of any applicable rules promulgated under s. 560.706 (2)
(3) Notice of eligibility.
The department shall provide to the person and to the department of revenue a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.
History: 2009 a. 2
Eligible activities in economically distressed areas and benefiting members of targeted groups.
The department may authorize a person certified under s. 560.701 (2)
to claim additional tax benefits under s. 560.703
if, after conducting an investigation, the department determines any of the following:
The person conducts at least one eligible activity in an area designated by the department as economically distressed. In designating an area as economically distressed under this subsection, the department shall follow the methodology established by rule under s. 560.706 (2) (e)