AB40-ASA1,1322,3
1(4) "Local governing body" means the governing body of one or more cities,
2villages, towns, or counties or the elected governing body of a federally recognized
3American Indian tribe or band in this state.
AB40-ASA1,1322,9 4(7) (b) 1. Except as provided in subd. 2., in s. 560.795 238.395, "tax benefits"
5means the development zones investment credit under ss. 71.07 (2di), 71.28 (1di),
6and 71.47 (1di) and the development zones credit under ss. 71.07 (2dx), 71.28 (1dx),
771.47 (1dx), and 76.636. With respect to the development opportunity zones under
8s. 560.795 238.395 (1) (e) and (f), "tax benefits" also means the development zones
9capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).
AB40-ASA1,1322,1310 2. With respect to the development opportunity zones under s. 560.795 238.395
11(1) (g) and (h), "tax benefits" means the development zone credits under ss. 71.07
12(2dx), 71.28 (1dx), 71.47 (1dx), and 76.636 and the development zones capital
13investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).
AB40-ASA1,1322,1614 (c) In s. 560.798 238.398, "tax benefits" means the development zones capital
15investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm) and the
16development zones credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.
AB40-ASA1,1322,1917 (d) In ss. 560.701 to 560.706 238.301 to 238.306, "tax benefits" means the
18economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and
1976.637.
AB40-ASA1, s. 3409 20Section 3409. 560.70 (1) of the statutes is repealed.
AB40-ASA1, s. 3410 21Section 3410. 560.701 of the statutes is renumbered 238.301, and 238.301 (1)
22(intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are
23amended to read:
AB40-ASA1,1323,3
1238.301 (1) Application. (intro.) Any person may apply to the department
2corporation on a form prepared by the department corporation for certification under
3this section. The application shall include all of the following:
AB40-ASA1,1323,54 (e) Other information required by the department corporation or the
5department of revenue.
AB40-ASA1,1323,9 6(2) (a) The department corporation may certify a person who submits an
7application under sub. (1) if, after conducting an investigation, the department
8corporation determines that the person is conducting or intends to conduct at least
9one eligible activity.
AB40-ASA1,1323,1110 (b) The department corporation shall provide a person certified under this
11section and the department of revenue with a copy of the certification.
AB40-ASA1,1323,14 12(3) Contract. (intro.) A person certified under this section shall enter into a
13written contract with the department corporation. The contract shall include
14provisions that detail all of the following:
AB40-ASA1,1323,1715 (b) Whether any of the eligible activities will occur in an economically
16distressed area, as designated by the department corporation under s. 560.704
17238.304 (1).
AB40-ASA1,1323,1918 (c) Whether any of the eligible activities will benefit members of a targeted
19group, as determined by the department corporation under s. 560.704 238.304 (2).
AB40-ASA1,1323,2220 (d) A compliance schedule that includes a sequence of anticipated actions to be
21taken or goals to be achieved by the person before the person may receive tax benefits
22under s. 560.703 238.303.
AB40-ASA1,1323,2423 (f) If feasible, a determination of the tax benefits the person will be authorized
24to claim under s. 560.703 238.303 (2) if the person fulfills the terms of the contract.
AB40-ASA1, s. 3411
1Section 3411. 560.702 of the statutes is renumbered 238.302, and 238.302
2(intro.), (1), (2) and (3), as renumbered, are amended to read:
AB40-ASA1,1324,4 3238.302 Eligible activities. (intro.) A person who conducts or proposes to
4conduct any of the following may be certified under s. 560.701 238.301 (2):
AB40-ASA1,1324,7 5(1) Job creation project. A project that creates and maintains for a period of
6time established by the department corporation by rule full-time jobs in addition to
7any existing full-time jobs provided by the person.
AB40-ASA1,1324,11 8(2) Capital investment project. A project that involves a significant
9investment of capital, as defined by the department corporation by rule under s.
10560.706 238.306 (2) (b), by the person in new equipment, machinery, real property,
11or depreciable personal property.
AB40-ASA1,1324,15 12(3) Employee training project. A project that involves significant investments
13in the training or reeducation of employees, as defined by the department
14corporation by rule under s. 560.706 238.306 (2) (c), by the person for the purpose of
15improving the productivity or competitiveness of the business of the person.
AB40-ASA1, s. 3412 16Section 3412. 560.703 (title) of the statutes is renumbered 238.303 (title).
AB40-ASA1, s. 3413 17Section 3413. 560.703 (1) (a) of the statutes, as affected by 2011 Wisconsin Act
184
, is renumbered 238.303 (1) (a) and amended to read:
AB40-ASA1,1324,2519 238.303 (1) (a) Except as provided in pars. (am) and (b), and subject to a
20reallocation by the department corporation pursuant to rules promulgated adopted
21under s. 560.205 238.15 (3) (d), the total tax benefits available to be allocated by the
22department corporation under ss. 560.701 to 560.706 238.301 to 238.306 may not
23exceed the sum of the tax benefits remaining to be allocated under ss. s. 560.71 to
24560.785, 2009 stats., s. 560.797, 2009 stats., s. 560.798, 2009 stats., s. 560.7995, 2009
25stats.,
and s. 560.96, 2009 stats., on March 6, 2009, plus $25,000,000.
AB40-ASA1, s. 3414
1Section 3414. 560.703 (1) (am) of the statutes, as created by 2011 Wisconsin
2Act 4
, is renumbered 238.303 (1) (am) and amended to read:
AB40-ASA1,1325,143 238.303 (1) (am) Before the department corporation allocates the additional
4$25,000,000 in tax benefits specified in par. (a), the department corporation shall
5submit its plan for such allocation to the joint committee on finance. If the
6cochairpersons of the committee do not notify the department corporation within 14
7working days after the date of the department's corporation's submittal that the
8committee has scheduled a meeting for the purpose of reviewing the plan, the plan
9may be implemented and the additional amount may be allocated as proposed by the
10department corporation. If, within 14 working days after the date of the
11department's corporation's submittal, the cochairpersons of the committee notify the
12department corporation that the committee has scheduled a meeting for the purpose
13of reviewing the proposed plan, the plan may be implemented and the additional
14amount allocated only upon approval of the committee.
AB40-ASA1, s. 3415 15Section 3415. 560.703 (1) (b), (2) and (3) of the statutes are renumbered
16238.303 (1) (b), (2) and (3) and amended to read:
AB40-ASA1,1325,2217 238.303 (1) (b) The department corporation may submit to the joint committee
18on finance a request in writing to exceed the total tax benefits specified in par. (a).
19The department corporation shall submit with its request a justification for seeking
20an increase under this paragraph. The joint committee on finance, following its
21review, may approve or disapprove an increase in the total tax benefits available to
22be allocated under ss. 560.701 to 560.706 238.301 to 238.306.
AB40-ASA1,1326,4 23(2) Authority to claim tax benefits. The department corporation may
24authorize a person certified under s. 560.701 238.301 (2) to claim tax benefits only
25after the person has submitted a report to the department corporation that

1documents to the satisfaction of the department corporation that the person has
2complied with the terms of the contract under s. 560.701 238.301 (3) and the
3requirements of any applicable rules promulgated adopted under s. 560.706 238.306
4(2).
AB40-ASA1,1326,7 5(3) Notice of eligibility. The department corporation shall provide to the
6person and to the department of revenue a notice of eligibility to receive tax benefits
7that reports the amount of tax benefits for which the person is eligible.
AB40-ASA1, s. 3416 8Section 3416. 560.704 of the statutes is renumbered 238.304, and 238.304
9(intro.) and (1), as renumbered, are amended to read:
AB40-ASA1,1326,14 10238.304 Eligible activities in economically distressed areas and
11benefiting members of targeted groups.
(intro.) The department corporation
12may authorize a person certified under s. 560.701 238.301 (2) to claim additional tax
13benefits under s. 560.703 238.303 if, after conducting an investigation, the
14department corporation determines any of the following:
AB40-ASA1,1326,18 15(1) The person conducts at least one eligible activity in an area designated by
16the department corporation as economically distressed. In designating an area as
17economically distressed under this subsection, the department corporation shall
18follow the methodology established by rule under s. 560.706 238.306 (2) (e).
AB40-ASA1, s. 3417 19Section 3417. 560.705 of the statutes is renumbered 238.305, and 238.305
20(intro.), (1) and (2), as renumbered, are amended to read:
AB40-ASA1,1326,22 21238.305 Revocation of certification. (intro.) The department corporation
22shall revoke the certification of a person who does any of the following:
AB40-ASA1,1326,24 23(1) Supplies false or misleading information to obtain certification under s.
24560.701 238.301 (2).
AB40-ASA1,1327,2
1(2) Supplies false or misleading information to obtain tax benefits under s.
2560.703 238.303.
AB40-ASA1, s. 3418 3Section 3418. 560.706 of the statutes is renumbered 238.306, and 238.306
4(intro.), (1) (a) and (b), (2) (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3),
5as renumbered, are amended to read:
AB40-ASA1,1327,7 6238.306 Responsibilities of the department corporation. (intro.) The
7department corporation shall do all of the following:
AB40-ASA1,1327,10 8(1) (a) Annually verify information submitted to the department of revenue
9under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under
10s. 560.701 238.301 (2) and eligible to receive tax benefits under s. 560.703 238.303.
AB40-ASA1,1327,1211 (b) Notify and obtain written approval from the secretary chief executive officer
12of the corporation
for any certification under sub. (2) (j).
AB40-ASA1,1327,16 13(2) (a) A schedule of hourly wage ranges to be paid, and health insurance
14benefits to be provided, to an employee by a person certified under s. 560.701 238.301
15(2) and the corresponding per employee tax benefit for which a person certified under
16s. 560.701 238.301 (2) may be eligible.
AB40-ASA1,1327,2217 (b) A definition of "significant investment of capital" for purposes of s. 560.702
18238.302 (2), together with a corresponding schedule of tax benefits for which a person
19who is certified under s. 560.701 238.301 (2) and who conducts a project described
20in s. 560.702 238.302 (2) may be eligible. The department corporation shall include
21in the definition required under this paragraph a schedule of investments that takes
22into consideration the size or nature of the business.
AB40-ASA1,1328,223 (c) A definition of "significant investments in the training or reeducation of
24employees" for purposes of s. 560.702 238.302 (3), together with a corresponding

1schedule of tax benefits for which a person who is certified under s. 560.701 238.301
2(2) and who conducts a project under s. 560.702 238.302 (3) may be eligible.
AB40-ASA1,1328,53 (d) A schedule of tax benefits for which a person who is certified under s.
4560.701 238.301 (2) and who conducts a project that will result in the location or
5retention of a person's corporate headquarters in Wisconsin may be eligible.
AB40-ASA1,1328,96 (e) (intro.) The methodology for designating an area as economically distressed
7under s. 560.704 238.304 (1). The methodology under this paragraph shall require
8the department corporation to consider the most current data available for the area
9and for the state on the following indicators:
AB40-ASA1,1328,1210 (f) A schedule of additional tax benefits for which a person who is certified
11under s. 560.701 238.301 (2) and who conducts an eligible activity described under
12s. 560.704 238.304 may be eligible.
AB40-ASA1,1328,1513 (g) Reporting requirements, minimum benchmarks, and outcomes expected of
14a person certified under s. 560.701 238.301 (2) before that person may receive tax
15benefits under s. 560.703 238.303.
AB40-ASA1,1328,1716 (h) Policies, criteria, and methodology for allocating a portion of the tax benefits
17available under s. 560.703 238.303 to rural areas.
AB40-ASA1,1328,1918 (i) Policies, criteria, and methodology for allocating a portion of the tax benefits
19available under s. 560.703 238.303 to small businesses.
AB40-ASA1,1328,2020 (k) Procedures for implementing ss. 560.701 to 560.706 238.301 to 238.306.
AB40-ASA1,1329,2 21(3) Reporting. Annually, 6 months after the report has been submitted under
22s. 560.01 (2) (am) 238.07 (2), submit to the joint legislative audit committee and to
23the appropriate standing committees of the legislature under s. 13.172 (3) a
24comprehensive report assessing the program under ss. 560.701 to 560.706 238.301

1to 238.306
. The report under this subsection shall update the applicable information
2provided in the report under s. 560.01 (2) (am) 238.07 (2).
AB40-ASA1, s. 3419 3Section 3419. 560.71 of the statutes is renumbered 238.31, and 238.31 (1)
4(intro.), (ac), (am), (b), (d) and (e) (intro.), 3. and 4. a., c. and d., (1m) (intro.), (a) and
5(h), (2) and (3) (intro.), as renumbered, are amended to read:
AB40-ASA1,1329,76 238.31 (1) (intro.) The department corporation may designate an area as a
7development zone if all of the following apply:
AB40-ASA1,1329,98 (ac) The department corporation has invited a local governing body to nominate
9the area under s. 560.715 238.315.
AB40-ASA1,1329,1110 (am) A local governing body nominates the area as described in s. 560.72
11238.32.
AB40-ASA1,1329,1312 (b) The department corporation has evaluated the local governing body's
13application as described in s. 560.725 238.325.
AB40-ASA1,1329,1514 (d) The area meets the applicable requirements under s. 560.735 or 560.737
15238.335.
AB40-ASA1,1329,1616 (e) (intro.) The department corporation determines all of the following:
AB40-ASA1,1329,1917 3. That economic development in the area is not likely to occur or continue
18without the department's corporation's designation of the area as a development
19zone.
AB40-ASA1,1329,2220 4. a. The unemployment rate in the area is higher than the state average for
21the 18 months immediately preceding the date on which the application under s.
22560.72 238.32 (2) or (3) was submitted to the department corporation.
AB40-ASA1,1329,2523 c. The percentage of households in the area receiving unemployment insurance
24under ch. 108, relief funded by a relief block grant under ch. 49, or aid to families with
25dependent children under s. 49.19 is higher than the state average.
AB40-ASA1,1330,4
1d. In the 36 months immediately preceding the date on which the application
2under s. 560.72 238.32 (2) or (3) was submitted to the department corporation, a
3number of workers in the area were permanently laid off by their employer or became
4unemployed as a result of a business action subject to s. 109.07 (1m).
AB40-ASA1,1330,6 5(1m) (intro.) In making a determination under sub. (1) (e), the department
6corporation shall consider all of the following:
AB40-ASA1,1330,87 (a) The extent of poverty, unemployment, or other factors contributing to
8general economic hardship in the area.
AB40-ASA1,1330,99 (h) Any other factors that the department corporation considers relevant.
AB40-ASA1,1330,13 10(2) In determining whether an area meets the requirements under sub. (1) (e)
11or s. 560.735 238.335, the department corporation may rely on any data provided by
12the local governing body which that the department corporation determines is
13relevant.
AB40-ASA1,1330,14 14(3) (intro.) The department corporation shall do all of the following:
AB40-ASA1, s. 3420 15Section 3420. 560.715 of the statutes is renumbered 238.315 and amended to
16read:
AB40-ASA1,1330,20 17238.315 Invitation to nominate area. If the department corporation
18determines that an area has experienced or is about to experience economic distress,
19the department corporation may invite local governing bodies in the area to
20nominate the area as a development zone.
AB40-ASA1, s. 3421 21Section 3421. 560.72 of the statutes is renumbered 238.32, and 238.32 (1)
22(intro.), (2) (intro.), (c), (d), (f) and (i), (3) and (5), as renumbered, are amended to read:
AB40-ASA1,1331,223 238.32 (1) (intro.) A local governing body may nominate an area as a
24development zone, if the department corporation has invited the governing body to

1nominate the area under s. 560.715 238.315 and if the governing body does all of the
2following:
AB40-ASA1,1331,5 3(2) (intro.) A local governing body may nominate the area as a development
4zone by submitting an application to the department corporation in a form prescribed
5by the department corporation. The application shall include all of the following:
AB40-ASA1,1331,76 (c) Evidence that the area meets at least 3 of the criteria under s. 560.71 238.31
7(1) (e) 4.
AB40-ASA1,1331,98 (d) Evidence that the area meets the applicable requirements of s. 560.735
9238.335.
AB40-ASA1,1331,1110 (f) A description of past and present economic development activities in the
11area under local, state, or federal programs.
AB40-ASA1,1331,1212 (i) Any other information required by the department corporation.
AB40-ASA1,1331,15 13(3) Two or more local governing bodies may submit a joint application
14nominating an area as a development zone, subject to s. 560.735 238.335 (2), if each
15local governing body complies with subs. (1) and (2).
AB40-ASA1,1331,18 16(5) The department corporation may permit a local governing body to revise an
17application that the department corporation determines is inadequate or
18incomplete.
AB40-ASA1, s. 3422 19Section 3422. 560.725 of the statutes is renumbered 238.325 and amended to
20read:
AB40-ASA1,1331,22 21238.325 Evaluation by department corporation. (1) The department
22corporation shall evaluate applications received under s. 560.72 238.32 (2) and (3).
AB40-ASA1,1332,3 23(2) Subject to s. 560.735 238.335 (5), the department corporation may reduce
24the size of an area nominated as a development zone, if the department corporation
25determines the boundaries as proposed by the local governing body in an application

1under s. 560.72 238.32 (2) or (3) are inconsistent with the purpose of the development
2zone program. Any nominated area which is reduced under this subsection need not
3comply with s. 560.735 238.335 (1) and (4).
AB40-ASA1,1332,8 4(3) After evaluating an application submitted under s. 560.72 238.32 (2) or (3),
5the department corporation may approve the application, subject to any reduction
6in the size of the nominated area under sub. (2). If the department corporation
7approves the application, the department corporation shall designate the area as a
8development zone, subject to s. 560.71 238.31, and notify the local governing body.
AB40-ASA1, s. 3423 9Section 3423. 560.735 of the statutes is renumbered 238.335, and 238.335 (1)
10(a) and (c), (2), (5) (a) and (b), (6) (a) 1. and 2. and (c), (6r) and (7), as renumbered, are
11amended to read:
AB40-ASA1,1332,1312 238.335 (1) (a) The area contains less than 10% of the valuation of the property
13of the city, village, or town, as determined under s. 70.57, in which the area is located.
AB40-ASA1,1332,1614 (c) If the area is located within a village, town, or city other than a 1st class city,
15the population of the area is not less than 1,000 nor more than 10,000, as estimated
16under s. 16.96.
AB40-ASA1,1332,19 17(2) If an area is located within the boundaries of 2 or more cities, villages, or
18towns, the property value of the cities, villages, or towns under sub. (1) (a) shall be
19combined for the purposes of sub. (1).
AB40-ASA1,1332,22 20(5) (a) The area has a continuous border following natural or man-made
21boundaries such as streets, highways, rivers, municipal limits, or limits of a
22reservation.
AB40-ASA1,1332,2323 (b) The area consists of contiguous blocks, census blocks, or similar units.
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