MDE&KP:cjs&emw
2023 - 2024 LEGISLATURE
October 30, 2023 - Introduced by Senators Feyen and Ballweg, cosponsored by
Representatives Armstrong, Macco, Behnke, Donovan, Hurd, Maxey,
Mursau, O'Connor, VanderMeer, Zimmerman and Doyle. Referred to
Committee on Universities and Revenue.
SB585,1,6 1An Act to renumber and amend 238.308 (3); to amend 71.07 (3y) (b) 4., 71.28
2(3y) (b) 4., 71.47 (3y) (b) 4., 238.308 (4) (a) 4. and 238.308 (5) (a); and to create
371.07 (3y) (b) 4m., 71.07 (3y) (b) 6., 71.28 (3y) (b) 4m., 71.28 (3y) (b) 6., 71.47 (3y)
4(b) 4m., 71.47 (3y) (b) 6., 238.308 (2) (c), 238.308 (3) (b), 238.308 (4) (a) 4m. and
5238.308 (4) (a) 6. of the statutes; relating to: various changes to the business
6development tax credit.
Analysis by the Legislative Reference Bureau
This bill makes several adjustments to the business development tax credit.
The changes apply to taxable years beginning after December 31, 2022.
Under current law, the Wisconsin Economic Development Corporation may
certify a person who operates or intends to operate a business in this state to receive
credits against state income and franchise taxes (tax benefits). These credits are
refundable, which means that if the credit exceeds the person's tax liability, the
person will receive the excess as a refund check.
Currently, a person is eligible for tax benefits if the person increases net
employment in this state in the person's business above what it was in the year
preceding the person's certification. Under the bill, a person is eligible for tax
benefits if, in each year for which the person claims tax benefits: 1) the person creates
new jobs or retains existing jobs and the person makes a capital investment in the
person's business; and 2) the person does not decrease net employment in this state

in the person's business below the net employment in this state in the person's
business during the year before the person was certified to receive tax benefits.
Also, under current law, a person may claim tax benefits of up to 3 percent of
the person's personal property investment and up to 5 percent of the person's real
property investment in a capital investment project, if the project involves a total
capital investment of at least $1,000,000 or, if less than $1,000,000, the project
involves a capital investment that is equal to at least $10,000 per eligible employee
employed on the project. The bill changes those limits to up to 10 percent of the
person's personal property investment and up to 10 percent of the person's real
property investment.
The bill also provides that a person may claim tax benefits of an amount equal
to up to 15 percent of the person's investment in workforce housing for eligible
employees and up to 15 percent of the person's investment in establishing a child care
program for eligible employees.
The bill provides that WEDC must approve or deny the certification of a person
within 90 days after receiving the person's application for certification.
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:
SB585,1 1Section 1. 71.07 (3y) (b) 4. of the statutes is amended to read:
SB585,2,62 71.07 (3y) (b) 4. The For taxable years beginning before January 1, 2023, the
3amount of the personal property investment, not to exceed 3 percent of such
4investment, and the amount of the real property investment, not to exceed 5 percent
5of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4.,
6as determined by the Wisconsin Economic Development Corporation.
SB585,2 7Section 2. 71.07 (3y) (b) 4m. of the statutes is created to read:
SB585,2,128 71.07 (3y) (b) 4m. For taxable years beginning after December 31, 2022, the
9amount of the personal property investment, not to exceed 10 percent of such
10investment, and the amount of real property investment, not to exceed 10 percent of
11such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4m.,
12as determined by the Wisconsin Economic Development Corporation.
SB585,3
1Section 3. 71.07 (3y) (b) 6. of the statutes is created to read:
SB585,3,72 71.07 (3y) (b) 6. For taxable years beginning after December 31, 2022, the
3amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
4eligible employees, not to exceed 15 percent of such investment, and the amount of
5the investment in establishing an employee child care program for eligible
6employees, not to exceed 15 percent of such investment, as determined by the
7Wisconsin Economic Development Corporation.
SB585,4 8Section 4. 71.28 (3y) (b) 4. of the statutes is amended to read:
SB585,3,139 71.28 (3y) (b) 4. The For taxable years beginning before January 1, 2023, the
10amount of the personal property investment, not to exceed 3 percent of such
11investment, and the amount of the real property investment, not to exceed 5 percent
12of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4.,
13as determined by the Wisconsin Economic Development Corporation.
SB585,5 14Section 5. 71.28 (3y) (b) 4m. of the statutes is created to read:
SB585,3,1915 71.28 (3y) (b) 4m. For taxable years beginning after December 31, 2022, the
16amount of the personal property investment, not to exceed 10 percent of such
17investment, and the amount of the real property investment, not to exceed 10 percent
18of such investment, in a capital investment project that satisfies s. 238.308 (4) (a)
194m., as determined by the Wisconsin Economic Development Corporation.
SB585,6 20Section 6. 71.28 (3y) (b) 6. of the statutes is created to read:
SB585,4,221 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2022, the
22amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
23eligible employees, not to exceed 15 percent of such investment, and the amount of
24the investment made in establishing an employee child care program for eligible

1employees, not to exceed 15 percent of such investment, as determined by the
2Wisconsin Economic Development Corporation.
SB585,7 3Section 7. 71.47 (3y) (b) 4. of the statutes is amended to read:
SB585,4,84 71.47 (3y) (b) 4. The For taxable years beginning before January 1, 2023, the
5amount of the personal property investment, not to exceed 3 percent of such
6investment, and the amount of the real property investment, not to exceed 5 percent
7of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4.,
8as determined by the Wisconsin Economic Development Corporation.
SB585,8 9Section 8. 71.47 (3y) (b) 4m. of the statutes is created to read:
SB585,4,1410 71.47 (3y) (b) 4m. For taxable years beginning after December 31, 2022, the
11amount of the personal property investment, not to exceed 10 percent of such
12investment, and the amount of the real property investment, not to exceed 10 percent
13of such investment, in a capital investment project that satisfies s. 238.308 (4) (a)
144m., as determined by the Wisconsin Economic Development Corporation.
SB585,9 15Section 9. 71.47 (3y) (b) 6. of the statutes is created to read:
SB585,4,2116 71.47 (3y) (b) 6. For taxable years beginning after December 31, 2022, the
17amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
18eligible employees, not to exceed 15 percent of such investment, and the amount of
19the investment made in establishing an employee child care program for eligible
20employees, not to exceed 15 percent of such investment, as determined by the
21Wisconsin Economic Development Corporation.
SB585,10 22Section 10. 238.308 (2) (c) of the statutes is created to read:
SB585,4,2523 238.308 (2) (c) The corporation shall approve or deny the certification of a
24person under par. (a) within 90 days after receiving a person's application for
25certification.
SB585,11
1Section 11. 238.308 (3) of the statutes is renumbered 238.308 (3) (a) and
2amended to read:
SB585,5,83 238.308 (3) (a) A For taxable years beginning before January 1, 2023, a person
4is eligible to receive tax benefits if, in each year for which the person claims tax
5benefits under this section, the person increases net employment in this state in the
6person's business above the net employment in this state in the person's business
7during the year before the person was certified under sub. (2), as determined by the
8corporation under its policies and procedures.
SB585,12 9Section 12. 238.308 (3) (b) of the statutes is created to read:
SB585,5,1210 238.308 (3) (b) For taxable years beginning after December 31, 2022, a person
11is eligible to receive tax benefits if, in each year for which the person claims tax
12benefits under this section, all of the following conditions are met:
SB585,5,1513 1. The person creates new jobs or retains existing jobs and the person makes
14a capital investment in this state in the person's business, as determined by the
15corporation under its policies and procedures.
SB585,5,1916 2. The person does not decrease net employment in this state in the person's
17business below the net employment in this state in the person's business during the
18year before the person is certified under sub. (2), as determined by the corporation
19under its policies and procedures.
SB585,13 20Section 13. 238.308 (4) (a) 4. of the statutes is amended to read:
SB585,6,221 238.308 (4) (a) 4. An For taxable years beginning before January 1, 2023, an
22amount equal to up to 3 percent of the person's personal property investment and up
23to 5 percent of the person's real property investment in a capital investment project,
24if the project involves a total capital investment of at least $1,000,000 or, if less than

1$1,000,000, the project involves a capital investment that is equal to at least $10,000
2per eligible employee employed on the project.
SB585,14 3Section 14. 238.308 (4) (a) 4m. of the statutes is created to read:
SB585,6,94 238.308 (4) (a) 4m. For taxable years beginning after December 31, 2022, an
5amount equal to up to 10 percent of the person's personal property investment and
6up to 10 percent of the person's real property investment in a capital investment
7project, if the project involves a total capital investment of at least $1,000,000 or, if
8less than $1,000,000, the project involves a capital investment that is equal to at
9least $10,000 per eligible employee employed on the project.
SB585,15 10Section 15. 238.308 (4) (a) 6. of the statutes is created to read:
SB585,6,1511 238.308 (4) (a) 6. For taxable years beginning after December 31, 2022, an
12amount equal to up to 15 percent of the person's investment in workforce housing,
13as defined in s. 234.66 (1) (i), for eligible employees and up to 15 percent of the
14person's investment in establishing an employee child care program for eligible
15employees.
SB585,16 16Section 16. 238.308 (5) (a) of the statutes is amended to read:
SB585,6,1917 238.308 (5) (a) The corporation may require a person to repay any tax benefits
18the person claims for a year in which the person failed to employ an eligible employee
19required by
comply with an agreement under sub. (2) (b).
SB585,6,2020 (End)
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