Estimate of Time Needed to Develop the Rule
The staff time needed to develop the rules is expected to range from 100 to 200 hours, depending upon the associated complexity. This anticipates a 12-month period for research, rule drafting, and processing the rules through public hearings, communicating with affected persons and groups, legislative review, and adoption. There are no other resources necessary to promulgate the rules. DATCP will use existing staff to develop this rule.
Commerce
Financial Resources for Businesses and Communities, Chs.
Comm 104—
Subject
Creates Chapter
Comm 100 and revises Chapters
Comm 107,
112 and
118, relating to tax benefits for job creation, capital investment, employee training, and corporate headquarters.
Objective of the Rule
This rulemaking is primarily intended to (1) consolidate five of the Department's job-development-zone tax-credit programs into a single, statewide program, to be consistent with the portions of
2009 Wisconsin Act 2 that address these programs; and (2) establish procedures for implementing sections
560.701 to
560.706 of the statutes, as enacted in
2009 Act 2, relating to tax benefits for job creation, capital investment, employee training, and corporate headquarters. This rulemaking may also include updating the current rules to make them consistent with current industry and administrative practices, and with any pending legislation affecting these programs and activities.
Policy Analysis
The Department has various rules for administering several economic development programs, but those rules typically do not include the expected rule text for targeting these tax benefits for job-creation, capital investment, employee training, and corporate headquarters, to where they will have the most impact.
The alternative of not promulgating these rules would result in chapters Comm 107, 112, and 118 continuing to be inconsistent with overriding, recently enacted criteria in
2009 Wisconsin Act 2; and would conflict with the directive in Act 2 to promulgate rules for implementing sections
560.701 to
560.706 of the statutes.
Statutory Authority
Comparison with Federal Regulations
In researching federal tax incentives, the Department and the Department of Revenue found that there are no tax credits at the federal level that are exactly like the corresponding credits in
2009 Wisconsin Act 2. The following two federal tax credits may apply to the activities under section
560.702 of the Statutes which will be addressed by the proposed rules, but these federal tax credits are structured differently than the credits in Act 2.
Job creation that is eligible for tax benefits under section
560.702 (1) of the Statutes may also qualify for the federal consolidated Work Opportunity Tax Credit – which includes tax credits for an employer that hires an individual who is: (1) a qualifying Hurricane Katrina employee, (2) a member of a qualifying family with long-term or recent receipt of Temporary Assistance to Needy Families payments, (3) a qualifying food stamp recipient, (4) a qualifying veteran, (5) a qualifying ex-felon, (6) a resident of a designated community, (7) a qualifying summer youth employee, (8) a qualifying recipient of vocational rehabilitative services, or (9) a qualifying recipient of Supplemental Security income.
Capital investments that are eligible for tax benefits under section
560.702 (2) of the Statutes may also qualify for the federal Investment Credit – which includes tax credits for any qualifying rehabilitation of older structures, solar or geothermal energy equipment, advanced coal projects, and gasification projects.
Entities Affected by the Rule
These rules may affect any entity that desires to receive these tax benefits.
Estimate of Time Needed to Develop the Rule
The staff time needed to develop the rules is expected to range from 200 to 400 hours, depending upon the associated complexity. This includes research, rule drafting, and processing the rules through public hearings, legislative review, and adoption. There are no other resources necessary to promulgate the rules.
Commerce
Financial Resources for Businesses and Communities, Chs.
Comm 104—
Subject
Revises Chapter
Comm 129, relating to tax credits for angel investments and early stage seed investments.
Objective of the Rule
This rulemaking is primarily intended to update chapter Comm 129 to make it consistent with the portions of
2007 Wisconsin Act 20 and
2009 Wisconsin Act 2 that address tax credits for angel investments and early stage seed investments, as regulated by the Department under section
560.205 of the Statutes. This rulemaking may also include updating chapter Comm 129 to make it consistent with current industry and administrative practices, and with any pending legislation affecting these tax credits.
Policy Analysis
The Department has various rules for administering several economic development programs, but those rules do not include the expected rule text for determining (1) which businesses are eligible to become certified as a qualified new business venture for angel investments, (2) which angel or early stage seed investments qualify for corresponding tax credits, (3) the maximum amount of the tax credits, and (4) transferability of the early stage seed investment tax credits.
The alternative of not promulgating these rule changes would result in chapter Comm 129 continuing to be inconsistent with overriding, recently enacted criteria in section
560.205 of the Statutes.
Statutory Authority
Comparison with Federal Regulations
Neither the Department nor the Department of Revenue is aware of any existing or proposed federal regulation that applies these tax credits.
Entities Affected by the Rule
These rule changes may affect any entity that elects to become or is certified as a qualified new business venture for angel investments, and any early stage seed investment fund manager that elects to become or is certified by the Department, under section
560.205 of the Statutes. The rule changes may also affect any investor in Department-accepted early stage seed investment funds that are managed by these certified fund managers, who desires to sell or otherwise transfer the corresponding tax credits.
Estimate of Time Needed to Develop the Rule
The staff time needed to develop the rule changes is expected to range from 80 to 160 hours, depending upon the associated complexity. This includes research, rule drafting, and processing the rules through public hearings, legislative review, and adoption. There are no other resources necessary to promulgate the rules.
Commerce
Financial Resources for Businesses and Communities, Chs.
Comm 104—
Subject
Revises Chapter
Comm 132, relating to meat processing and dairy manufacturing facility investment credits.
Objective of the Rule
The proposed rules would implement the provisions of
2009 Wisconsin Act 2 that relate to certifying applicants and allocating to them tax credits for investments in meat processing facilities or for investments by dairy cooperatives in dairy manufacturing facilities.
Policy Analysis
The Department has rules for several other programs associated with tax credits, but none of those programs relate specifically to investments in meat processing facilities or to investments by dairy cooperatives in dairy manufacturing facilities. Chapter
Comm 132 currently addresses tax credits for investments in dairy manufacturing facilities, other than by dairy cooperatives.
The proposed rules are expected to address (1) the eligibility requirements for applicants; (2) the documentation that must be submitted by applicants to become certified as eligible for the investment credits, and to receive acceptance of the incurred expenses for modernization or expansion; (3) the Department's response to the submitted documentation; and (4) use of the Department's response when filing a claim with the Department of Revenue for the corresponding tax credit. The proposed rules may be included either entirely in chapter Comm 132, or partly there and partly in a new Comm chapter for meat processing facilities.
The alternative of not promulgating these rules would conflict with directives in sections
560.207 (4) and
560.208 (4) of the Statutes that require this promulgation, in consultation with the Department of Revenue.
Statutory Authority
Comparison with Federal Regulations
Neither the Department nor the Department of Revenue is aware of any existing or proposed federal tax credits that are similar to these tax credits.
Entities Affected by the Rule
The proposed rules may affect entities that incur expenses relating to modernization or expansion of meat processing facilities, or to members of dairy cooperatives that incur expenses relating to modernization or expansion of dairy manufacturing facilities.
Estimate of Time Needed to Develop the Rule
The staff time needed to develop the rules is expected to range from 200 to 300 hours, depending upon the associated complexity. This includes research, rule drafting, and processing the rules through public hearings, legislative review, and adoption. There are no other resources necessary to promulgate the rules.
Natural Resources
Fish, Game, etc., Chs.
NR 1—
Subject
Revises Chapter
NR 10, relating to the establishment of the 2009 migratory game bird hunting seasons.
Policy Analysis
Each year the department promulgates a rule order establishing the hunting seasons for species such as ducks and geese based on a framework that is offered to states by the US Fish & Wildlife Service. The timeline for promulgating this rule is compressed because of the need to coordinate with the federal rule making process. In late July department staff attend the Mississippi Flyway Council (MFC) Technical and Council meetings where they will receive proposed season framework options from the service. Staff will then work with other states in our Flyway to develop recommendations that are voted upon by the MFC. Proposals that are passed at the MFC meeting are forwarded to the service for consideration by their regulations committee in late July.
Once the USFWS's final framework is available (approximately August 1), department staff will summarize waterfowl population status and regulation information for Wisconsin citizens. This information is presented and public comments are received from the Migratory Committee of the Conservation Congress and a public meeting (Post-Flyway Meeting) of interest groups and individuals. The following week, public hearings will be held around the state to solicit additional input. The Department then promulgates a permanent and emergency rule simultaneously in order to open the waterfowl seasons in September.
Statutory Authority
Comparison with Federal Regulations
Under international treaty and federal law, migratory game bird seasons are closed unless opened annually through the USFWS regulations process. As part of the federal rule process, the service proposes a duck harvest-management objective that balances hunting opportunities with the desire to achieve waterfowl population goals identified in the North American Waterfowl Management Plan (NAWMP). Under this harvest-management objective, the relative importance of hunting opportunity increases as duck populations approach the goals in the NAWMP. Thus, hunting opportunity is maximized when the population is at or above goals. Other factors such as habitat are also considered. The Regular Canada goose season is based on the allowable Mississippi Valley Population (MVP) harvest which will be determined based on the spring breeding population goal for that population and the spring population estimate obtained from an aerial survey of the MVP breeding range. All the proposed modifications included in this rule order are consistent with these parameters and guidelines which are annually established by the Fish and Wildlife Service in
50 CFR part 20.
Entities Affected by the Rule
These rules will impact migratory game bird hunters and those who enjoy viewing waterfowl in Wisconsin.
Estimate of Time Needed to Develop the Rule
Approximately 500 hours will be needed by the Department to develop the rule prior to and following the hearings.
Contact Information
Kent Van Horn, Migratory Birds Specialist
101 South Webster Street
PO Box 7921
Madison, WI 53707-7921
Phone: (608) 266-8841
