2017 - 2018 LEGISLATURE
February 16, 2018 - Introduced by Representatives Steineke, Rohrkaste, Murphy,
Tusler, Spiros and Petersen, cosponsored by Senator Roth. Referred to
Committee on State Affairs.
AB963,1,6 1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4) (a),
271.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g) and 238.12 (1); and to create 20.835
3(2) (cq), 71.07 (3ym), 71.28 (3ym), 77.54 (67) and 238.165 of the statutes;
4relating to: authorizing certain tax benefits for a paper products
5manufacturer with facilities in the city of Neenah and village of Fox Crossing
6and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill authorizes the Wisconsin Economic Development Corporation to
certify a certain paper products manufacturer to claim tax credits. The business
certified by WEDC under the bill may claim as income and franchise tax credits a
percentage of the business's eligible payroll for full-time employees, as defined in the
bill, employed at the business's facilities in the city of Neenah and village of Fox
Crossing, if the employment positions exist when the bill becomes law.
The bill further authorizes WEDC to certify the paper products manufacturer
for additional income and franchise tax credits, subject to certain limitations, if the
business makes a significant capital expenditure at a facility specified above. The
bill also creates a sales and use tax exemption for the sale of building materials,
supplies, and equipment used to construct or develop facilities located at a facility
specified above if the capital expenditures for constructing or developing the
facilities may be claimed as income and franchise tax credits by the business certified
under the bill.

If the amount of any income and franchise tax credit under the bill exceeds the
business's tax liability, the business receives a refund equal to the excess amount.
WEDC may seek repayment of tax credits that the business claims for a year
in which the business failed to maintain employment levels or a significant capital
investment in property required by contract between the business and WEDC. Also,
WEDC must revoke the certification to claim tax credits if the business does any of
the following:
1. Supplies false or misleading information to obtain the tax credits.
2. Leaves the state to conduct substantially the same business outside the
state.
3. Ceases operations in the state and does not renew operation of the business
or a similar business in the state within 12 months.
4. Fails to retain at least 93 percent of its full-time employees at the facilities
specified above who were identified as being full-time employees of the business in
the base year, as determined by WEDC.
5. Fails to retain at least 93 percent of its full-time employees employed in this
state but outside the facilities specified above who were identified as being full-time
employees of the business in the base year, as determined by WEDC.
A certification under the bill may remain in effect for no more than 15 years.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local 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:
AB963,1 1Section 1 . 20.835 (2) (cq) of the statutes is created to read:
AB963,2,32 20.835 (2) (cq) Paper products manufacturer credit. A sum sufficient to make
3the payments under ss. 71.07 (3ym) (d) 2. and 71.28 (3ym) (d) 2.
AB963,2 4Section 2 . 71.05 (6) (a) 15. of the statutes, as affected by 2017 Wisconsin Act
558
, is amended to read:
AB963,3,26 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
7credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
8(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (3ym), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k),
9(5r), (5rm), (6n), and (8r) and not passed through by a partnership, limited liability

1company, or tax-option corporation that has added that amount to the partnership's,
2company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB963,3 3Section 3 . 71.07 (3ym) of the statutes is created to read:
AB963,3,54 71.07 (3ym) Paper products manufacturer credit. (a) Definitions. In this
5subsection:
AB963,3,76 1. “Claimant" means a person who is certified to claim tax benefits under s.
7238.165 (2) and who files a claim under this subsection.
AB963,3,108 2. “Eligible payroll" means the amount of state payroll that is attributable to
9wages paid by the claimant to full-time employees. “Eligible payroll" does not
10include the amount of wages paid to any full-time employee that exceeds $100,000.
AB963,3,1111 3. “Full-time employee" has the meaning given in s. 238.165 (1m) (a).
AB963,3,1312 4. “State payroll" means the amount of payroll apportioned to this state, as
13determined under s. 71.25 (8).
AB963,3,1514 5. “Wages" means wages under section 3306 (b) of the Internal Revenue Code,
15determined without regard to any dollar limitations.
AB963,3,1816 (b) Filing claims; payroll. Subject to the limitations provided in this subsection
17and s. 238.165, a claimant may claim as a credit against the tax imposed under s.
1871.02 or 71.08 an amount calculated as follows:
AB963,3,2019 1. Determine the eligible payroll for the taxable year for full-time employees
20employed by the claimant.
AB963,3,2121 2. Multiply the amount determined under subd. 1. by 17 percent.
AB963,4,222 (bm) Filing supplemental claims. In addition to claiming the credit under par.
23(b), and subject to the limitations under this subsection and s. 238.165, a claimant
24may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount up

1to 15 percent of the claimant's significant capital expenditures in this state in the
2taxable year, as determined under s. 238.165 (4).
AB963,4,103 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
4corporations may not claim the credit under this subsection, but the eligibility for,
5and the amount of, the credit are based on their payment of amounts described under
6pars. (b) and (bm). A partnership, limited liability company, or tax-option
7corporation shall compute the amount of credit that each of its partners, members,
8or shareholders may claim and shall provide that information to each of them.
9Partners, members of limited liability companies, and shareholders of tax-option
10corporations may claim the credit in proportion to their ownership interests.
AB963,4,1311 2. No credit may be allowed under this subsection unless the claimant includes
12with the claimant's return a copy of the claimant's certification for tax benefits under
13s. 238.165 (2).
AB963,4,1514 (d) Administration. 1. Section 71.28 (4) (g) and (h), as it applies to the credit
15under s. 71.28 (4), applies to the credit under this subsection.
AB963,4,2116 2. If the allowable amount of the claim under this subsection exceeds the taxes
17otherwise due on the claimant's income under s. 71.02, the amount of the claim that
18is not used to offset those taxes shall be certified by the department of revenue to the
19department of administration for payment by check, share draft, or other draft
20drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no
21interest shall be paid on amounts certified under this subdivision.
AB963,4 22Section 4. 71.08 (1) (intro.) of the statutes, as affected by 2017 Wisconsin Act
2358
, is amended to read:
AB963,5,824 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
25couple filing jointly, trust, or estate under s. 71.02, not considering the credits under

1ss. 71.07 (1), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
2(3wm), (3y), (3ym), (4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8r), (9e),
3(9m), and (9r), 71.28 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), (3wm), and (3y), and (3ym),
471.47 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), and (3y), 71.57 to 71.61, and 71.613 and
5subch. VIII and payments to other states under s. 71.07 (7), is less than the tax under
6this section, there is imposed on that natural person, married couple filing jointly,
7trust or estate, instead of the tax under s. 71.02, an alternative minimum tax
8computed as follows:
AB963,5 9Section 5. 71.10 (4) (i) of the statutes, as affected by 2017 Wisconsin Acts 58
10and 59, is amended to read:
AB963,6,211 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
12preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
13beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
14credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
1571.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
16credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
1771.07 (3rm), food processing plant and food warehouse investment credit under s.
1871.07 (3rn), business development credit under s. 71.07 (3y), research credit under
19s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film
20production company investment credit under s. 71.07 (5h), veterans and surviving
21spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s.
2271.07 (3w), electronics and information technology manufacturing zone credit under
23s. 71.07 (3wm), paper products manufacturer credit under s. 71.07 (3ym), beginning
24farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit

1under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under
2subch. X.
AB963,6 3Section 6. 71.21 (4) (a) of the statutes, as affected by 2017 Wisconsin Act 58,
4is amended to read:
AB963,6,85 71.21 (4) (a) The amount of the credits computed by a partnership under s.
671.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
7(3wm), (3y), (3ym), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and
8(8r) and passed through to partners shall be added to the partnership's income.
AB963,7 9Section 7. 71.26 (2) (a) 4. of the statutes, as affected by 2017 Wisconsin Acts
1058
and 59, is amended to read:
AB963,6,1611 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
12(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (3ym),
13(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), and (9s) and not passed
14through by a partnership, limited liability company, or tax-option corporation that
15has added that amount to the partnership's, limited liability company's, or
16tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB963,8 17Section 8 . 71.28 (3ym) of the statutes is created to read:
AB963,6,1918 71.28 (3ym) Paper products manufacturer credit. (a) Definitions. In this
19subsection:
AB963,6,2120 1. “Claimant" means a person who is certified to claim tax benefits under s.
21238.165 (2) and who files a claim under this subsection.
AB963,6,2422 2. “Eligible payroll" means the amount of state payroll that is attributable to
23wages paid by the claimant to full-time employees. “Eligible payroll" does not
24include the amount of wages paid to any full-time employee that exceeds $100,000.
AB963,6,2525 3. “Full-time employee" has the meaning given in s. 238.165 (1m) (a).
AB963,7,2
14. “State payroll" means the amount of payroll apportioned to this state, as
2determined under s. 71.25 (8).
AB963,7,43 5. “Wages" means wages under section 3306 (b) of the Internal Revenue Code,
4determined without regard to any dollar limitations.
AB963,7,75 (b) Filing claims; payroll. Subject to the limitations provided in this subsection
6and s. 238.165, a claimant may claim as a credit against the tax imposed under s.
771.23 an amount calculated as follows:
AB963,7,98 1. Determine the eligible payroll for the taxable year for full-time employees
9employed by the claimant.
AB963,7,1010 2. Multiply the amount determined under subd. 1. by 17 percent.
AB963,7,1511 (bm) Filing supplemental claims. In addition to claiming the credit under par.
12(b), and subject to the limitations under this subsection and s. 238.165, a claimant
13may claim as a credit against the tax imposed under s. 71.23 an amount up to 15
14percent of the claimant's significant capital expenditures in this state in the taxable
15year, as determined under s. 238.165 (4).
AB963,7,2316 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
17corporations may not claim the credit under this subsection, but the eligibility for,
18and the amount of, the credit are based on their payment of amounts described under
19pars. (b) and (bm). A partnership, limited liability company, or tax-option
20corporation shall compute the amount of credit that each of its partners, members,
21or shareholders may claim and shall provide that information to each of them.
22Partners, members of limited liability companies, and shareholders of tax-option
23corporations may claim the credit in proportion to their ownership interests.
AB963,8,3
12. No credit may be allowed under this subsection unless the claimant includes
2with the claimant's return a copy of the claimant's certification for tax benefits under
3s. 238.165 (2).
AB963,8,54 (d) Administration. 1. Subsection (4) (g) and (h), as it applies to the credit
5under sub. (4), applies to the credit under this subsection.
AB963,8,116 2. If the allowable amount of the claim under this subsection exceeds the taxes
7otherwise due on the claimant's income under s. 71.23, the amount of the claim that
8is not used to offset those taxes shall be certified by the department of revenue to the
9department of administration for payment by check, share draft, or other draft
10drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no
11interest shall be paid on amounts certified under this subdivision.
AB963,9 12Section 9. 71.30 (3) (f) of the statutes, as affected by 2017 Wisconsin Acts 58
13and 59, is amended to read:
AB963,8,2514 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
15farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
16investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
17facility investment credit under s. 71.28 (3r), woody biomass harvesting and
18processing credit under s. 71.28 (3rm), food processing plant and food warehouse
19investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
20(3w), electronics and information technology manufacturing zone credit under s.
2171.28 (3wm), paper products manufacturer credit under s. 71.28 (3ym), business
22development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., film
23production services credit under s. 71.28 (5f), film production company investment
24credit under s. 71.28 (5h), beginning farmer and farm asset owner tax credit under
25s. 71.28 (8r), and estimated tax payments under s. 71.29.
AB963,10
1Section 10. 71.34 (1k) (g) of the statutes, as affected by 2017 Wisconsin Act 58,
2is amended to read:
AB963,9,63 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
4corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r),
5(3rm), (3rn), (3t), (3w), (3wm), (3y), (3ym), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
6(5r), (5rm), (6n), and (8r) and passed through to shareholders.
AB963,11 7Section 11 . 77.54 (67) of the statutes is created to read:
AB963,9,148 77.54 (67) The sales price from the sale of building materials, supplies, and
9equipment and the sale of services described in s. 77.52 (2) (a) 20. to; and the storage,
10use, or other consumption of the same property and services by; owners, lessees,
11contractors, subcontractors, or builders if that property or service is acquired solely
12for or used solely in the construction or development of facilities for which capital
13expenditures may be claimed as a credit under s. 71.07 (3ym) (bm) or 71.28 (3ym)
14(bm), as certified by the Wisconsin Economic Development Corporation.
AB963,12 15Section 12. 238.12 (1) of the statutes, as affected by 2017 Wisconsin Act 58,
16is amended to read:
AB963,9,1917 238.12 (1) In this section, “tax benefits" means the credits under ss. 71.07
18(2dm), (2dx), (3g), (3t), and (3wm), and (3ym), 71.28 (1dm), (1dx), (3g), (3t), and
19(3wm), and (3ym), 71.47 (1dm), (1dx), (3g), and (3t), and 76.636.
AB963,13 20Section 13 . 238.165 of the statutes is created to read:
AB963,9,25 21238.165 Paper products manufacturer tax credit. (1) Legislative
22declaration.
The legislature finds and determines that tax benefits provided under
23this section to the paper products manufacturer specified under sub. (2) (a)
24encourage economic development in this state, reduce unemployment in this state,
25preserve business activities within this state, and preserve and increase needed

1capital in this state for the benefit and welfare of people throughout the state. The
2tax benefits are therefore in the public interest and will serve a public purpose, and
3it is the public policy of this state to provide the tax benefits under this section.
AB963,10,4 4(1m) Definition. In this section:
AB963,10,95 (a) “Full-time employee" means an individual who is employed at a facility
6specified under sub. (2) (a) in a job for which the annual pay is at least $30,000 and
7who is offered retirement, health, and other benefits that are equivalent to the
8retirement, health, and other benefits offered to an individual who is required to
9work at least 2,080 hours per year.
AB963,10,1110 (b) “Tax benefits” means the income and franchise tax credits under ss. 71.07
11(3ym) and 71.28 (3ym).
AB963,10,13 12(2) Certification. The corporation may certify a business to receive tax
13benefits under this section if all of the following apply:
AB963,10,1614 (a) The business is a paper products manufacturer with facilities located at
151050 Cold Spring Road in the village of Fox Crossing and 1111 Henry Street in the
16city of Neenah.
AB963,10,1817 (b) The business applies under this section and enters into a contract with the
18corporation.
AB963,10,20 19(3) Time limit. A certification under sub. (2) shall remain in effect for no more
20than 15 years.
AB963,11,3 21(4) Additional tax benefits for significant capital expenditures. If the
22corporation determines that a business certified under sub. (2) makes a significant
23capital expenditure at a facility specified under sub. (2) (a), the corporation may
24certify the business to receive additional tax benefits in an amount to be determined
25by the corporation, but not exceeding 15 percent of the business's capital

1expenditures. The corporation shall, in a manner determined by the corporation,
2allocate the tax benefits a business is certified to receive under this subsection over
3a period of years.
AB963,11,5 4(6) Other duties. (a) The corporation shall revoke a certification under sub.
5(2) if the business does any of the following:
AB963,11,66 1. Supplies false or misleading information to obtain tax benefits.
AB963,11,87 2. Leaves the state to conduct substantially the same business outside the
8state.
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