LRB-3355/2
RJM&JK:jld:rs
2003 - 2004 LEGISLATURE
January 5, 2004 - Introduced by Representatives Vruwink, Taylor, Hebl,
Richards, Turner, Schooff, Miller, Plouff, Berceau, Molepske,
Pope-Roberts, Zepnick, J. Lehman
and Gronemus, cosponsored by Senators
Plale, Schultz and Lassa. Referred to Committee on Ways and Means.
AB722,1,6 1An Act to amend 71.07 (2dx) (a) 5., 71.07 (2dx) (b) (intro.), 71.28 (1dx) (a) 5.,
271.28 (1dx) (b) (intro.), 71.47 (1dx) (a) 5., 71.47 (1dx) (b) (intro.), 560.745 (2) (a),
3560.797 (2) (d) and 560.797 (5) (b); and to create 560.745 (2) (ar) of the statutes;
4relating to: tax credits under the Development Zone and Enterprise
5Development Zone programs and limits on the total number of authorized
6enterprise development zones.
Analysis by the Legislative Reference Bureau
Currently, the Department of Commerce (department) is authorized to allocate
$38,155,000 in tax credits to eligible businesses that conduct certain economic
activities in areas designated as development zones. In addition, the department is
authorized to allocate tax credits to eligible businesses that conduct certain economic
activities in areas designated as enterprise development zones. Under current law,
the department may allocate up to $3,000,000 in tax credits per enterprise
development zone and, unless a greater number is authorized by the Joint
Committee on Finance, may designate up to 79 enterprise development zones. Thus,
the total amount of tax credits authorized under the Enterprise Development Zone
Program is currently $237,000,000.
This bill pools the total amount of tax credits authorized under the
Development Zone and Enterprise Development Zone programs. Under this bill, the
department may allocate a total of $275,155,000 in tax credits under the

Development Zone Program or the Enterprise Development Zone Program. The
combined total of all tax credits allocated by the department under these programs,
though, may not exceed $275,155,000. This bill also deletes the $3,000,000 limit on
tax credits per enterprise development zone and the limit on the total number of
enterprise development zones that the department may designate.
Under current law, a business that is eligible to claim the development zones
tax credit may claim as a credit an amount that is based in part on the number of jobs
the business creates in the development zone that are filled by members of a targeted
group. A member of a targeted group includes a person who resides in a location that
the federal government designates as an empowerment zone or an enterprise
community. Under current law, a business that claims a development zones tax
credit may claim the credit only against the taxes imposed on the income derived
from business activities in the development zone.
Under the bill, a member of a targeted group includes a person who resides in
a location that the federal government designates for the purpose of encouraging
economic revitalization, rather than a location that the federal government
designates as an empowerment zone or an enterprise community. Under the bill, a
business that claims a development zones tax credit may claim the credit against the
amount of the taxes imposed on all of the income of the business, regardless of
whether the income is derived from business activities in the development zone.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB722, s. 1 1Section 1. 71.07 (2dx) (a) 5. of the statutes is amended to read:
AB722,3,52 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides
3in an empowerment zone, or an enterprise community, that the U.S. government
4designates
a location designated by the federal government for the purpose of
5encouraging economic revitalization
, a person who is employed in an unsubsidized
6job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin
7works employment position, a person who is employed in a trial job, as defined in s.
849.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a
9person who is a vocational rehabilitation referral, an economically disadvantaged
10youth, an economically disadvantaged veteran, a supplemental security income

1recipient, a general assistance recipient, an economically disadvantaged ex-convict,
2a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated
3worker, as defined in 29 USC 2801 (9), or a food stamp recipient; if the person has
4been certified in the manner under sub. (2dj) (am) 3. by a designated local agency,
5as defined in sub. (2dj) (am) 2.
AB722, s. 2 6Section 2. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:
AB722,3,127 71.07 (2dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and
8in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
9is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
10560.797 (4) or 560.798 (3), any person may claim as a credit against the amount of
11the
taxes imposed on the person's income from the person's business activities in a
12development zone
otherwise due under this subchapter the following amounts:
AB722, s. 3 13Section 3. 71.28 (1dx) (a) 5. of the statutes is amended to read:
AB722,4,214 71.28 (1dx) (a) 5. "Member of a targeted group" means a person who resides
15in an empowerment zone, or an enterprise community, that the U.S. government
16designates
a location designated by the federal government for the purpose of
17encouraging economic revitalization
, a person who is employed in an unsubsidized
18job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin
19works employment position, a person who is employed in a trial job, as defined in s.
2049.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a
21person who is a vocational rehabilitation referral, an economically disadvantaged
22youth, an economically disadvantaged veteran, a supplemental security income
23recipient, a general assistance recipient, an economically disadvantaged ex-convict,
24a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated
25worker, as defined in 29 USC 2801 (9), or a food stamp recipient; if the person has

1been certified in the manner under sub. (1dj) (am) 3. by a designated local agency,
2as defined in sub. (1dj) (am) 2.
AB722, s. 4 3Section 4. 71.28 (1dx) (b) (intro.) of the statutes is amended to read:
AB722,4,94 71.28 (1dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and
5in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
6is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
7560.797 (4) or 560.798 (3), any person may claim as a credit against the amount of
8the
taxes imposed on the person's income from the person's business activities in a
9development zone
otherwise due under this subchapter the following amounts:
AB722, s. 5 10Section 5. 71.47 (1dx) (a) 5. of the statutes is amended to read:
AB722,4,2411 71.47 (1dx) (a) 5. "Member of a targeted group" means a person who resides
12in an empowerment zone, or an enterprise community, that the U.S. government
13designates
a location designated by the federal government for the purpose of
14encouraging economic revitalization
, a person who is employed in an unsubsidized
15job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin
16works employment position, a person who is employed in a trial job, as defined in s.
1749.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a
18person who is a vocational rehabilitation referral, an economically disadvantaged
19youth, an economically disadvantaged veteran, a supplemental security income
20recipient, a general assistance recipient, an economically disadvantaged ex-convict,
21a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated
22worker, as defined in 29 USC 2801 (9), or a food stamp recipient; if the person has
23been certified in the manner under sub. (1dj) (am) 3. by a designated local agency,
24as defined in sub. (1dj) (am) 2.
AB722, s. 6 25Section 6. 71.47 (1dx) (b) (intro.) of the statutes is amended to read:
AB722,5,6
171.47 (1dx) (b) Credit. (intro.) Except or provided in pars. (be) and (bg) and
2in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
3is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
4560.797 (4) or 560.798 (3), any person may claim as a credit against the amount of
5the
taxes imposed on the person's income from the person's business activities in a
6development zone
otherwise due under this subchapter the following amounts:
AB722, s. 7 7Section 7. 560.745 (2) (a) of the statutes is amended to read:
AB722,5,108 560.745 (2) (a) When the department designates a development zone under s.
9560.71, it shall establish a limit for tax benefits for the development zone determined
10by allocating to the development zone a portion of $38,155,000 $275,155,000.
AB722, s. 8 11Section 8. 560.745 (2) (ar) of the statutes is created to read:
AB722,5,1312 560.745 (2) (ar) The total amount of all tax benefits authorized under par. (a)
13and all tax benefits authorized under s. 560.797 (5) (b) may not exceed $275,155,000.
AB722, s. 9 14Section 9. 560.797 (2) (d) of the statutes is amended to read:
AB722,5,1815 560.797 (2) (d) The department may not designate more than 79 enterprise
16development zones unless the department obtains the approval of the joint
17committee on finance to do so.
Of the enterprise development zones that the
18department designates, at least 10 shall be designated under par. (bg).
AB722, s. 10 19Section 10. 560.797 (5) (b) of the statutes is amended to read:
AB722,5,2520 560.797 (5) (b) When the department designates an area as an enterprise
21development zone under this section, the department shall establish a limit, not to
22exceed $3,000,000,
for tax benefits for the enterprise development zone by allocating
23to the enterprise development zone a portion of $275,155,000. The total amount of
24all tax benefits authorized under this paragraph and all tax benefits authorized
25under s. 560.745 (2) (a) may not exceed $275,155,000
.
AB722, s. 11
1Section 11. Initial applicability.
AB722,6,42 (1) The treatment of sections 71.07 (2dx) (a) 5. and (b) (intro.), 71.28 (1dx) (a)
35. and (b) (intro.), and 71.47 (1dx) (a) 5. and (b) (intro.) of the statutes first applies
4to taxable years beginning on January 1, 2004.
AB722,6,55 (End)
Loading...
Loading...