560.797(6)(a)3.
3. Ceases operations in the enterprise development zone and does not renew operation of the trade or business or a similar trade or business in the enterprise development zone within 12 months.
560.797(6)(b)
(b) The department shall notify the department of revenue within 30 days after revoking an entitlement under
par. (a).
560.798
560.798
Agricultural development zone. 560.798(1)
(1) In this section, "rural municipality" means any of the following:
560.798(1)(a)
(a) A city, town, or village that is located in a county with a population density of less than 150 persons per square mile.
560.798(1)(b)
(b) A city, town, or village with a population of 6,000 or less.
560.798(2)(a)(a) The department may designate one area in the state as an agricultural development zone. The area must be located in a rural municipality. An agricultural business that is located in an agricultural development zone and that is certified by the department under
sub. (3) is eligible for tax benefits as provided in
sub. (3).
560.798(2)(b)
(b) The designation of an area as an agricultural development zone shall be in effect for 10 years from the time that the department first designates the area. Not more than $5,000,000 in tax benefits may be claimed in an agricultural development zone, except that the department may allocate the amount of unallocated airport development zone tax credits, as provided under
s. 560.7995 (3) (b), to agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The department may change the boundaries of an agricultural development zone during the time that its designation is in effect. A change in the boundaries of an agricultural development zone does not affect the duration of the designation of the area or the maximum tax benefit amount that may be claimed in the agricultural development zone.
560.798(3)(a)(a) The department may certify for tax benefits in an agricultural development zone a new or expanding agricultural business that is located in the agricultural development zone. In determining whether to certify a business under this subsection, the department shall consider, among other things, the number of jobs that will be created or retained by the business.
560.798(3)(b)
(b) When the department certifies an agricultural business under this subsection, the department shall establish a limit on the amount of tax benefits that the business may claim. The department shall enter into an agreement with the business that specifies the limit on the amount of tax benefits that the business may claim and reporting requirements with which the business must comply.
560.798(4)(a)(a) The department of commerce shall notify the department of revenue of all the following:
560.798(4)(a)2.
2. A business's certification and the limit on the amount of tax benefits that the business may claim.
560.798(5)
(5) The department shall promulgate rules for the operation of this section, including rules related to all the following:
560.798(5)(a)
(a) Criteria for designating an area as an agricultural development zone.
560.798(5)(b)
(b) Criteria for certifying a business for tax benefits.
560.798(5)(c)
(c) Standards for establishing the limit on the amount of tax benefits that a business may claim.
560.798(5)(d)
(d) Reporting requirements for certified businesses.
560.798(5)(e)
(e) The exchange of information between the department of commerce and the department of revenue.
560.798(5)(f)
(f) Reasons for revoking a business's certification.
560.798(5)(g)
(g) Standards for changing the boundaries of an agricultural development zone.
560.798 Cross-reference
Cross Reference: See also ch.
Comm 118, Wis. adm. code.
560.799(1)(bm)2.
2. Individuals who provide services to a business as independent contractors in this state.
560.799(3)
(3) Designation of enterprise zones; criteria. 560.799(3)(a)(a) The department may designate not more than 10 enterprise zones. The department may designate an area as an enterprise zone if the area does not exceed 50 acres.
560.799(3)(b)
(b) In determining whether to designate an area under
par. (a), the department shall consider all of the following: Indicators of the area's economic need, which may include data regarding household income, average wages, the condition of property, housing values, population decline, job losses, infrastructure and energy support, the rate of business development, the existing resources available to the area; the effect of designation on other initiatives and programs to promote economic and community development in the area, including job creation and job training and creating high-paying jobs.
560.799(3)(c)
(c) The department shall, to the extent possible, give preference to the greatest economic need.
560.799(4)
(4) Time limits; reporting. A designation under
sub. (3) may remain in effect for no more than 12 years.
560.799(5)
(5) Certification. The department may certify for tax benefits any of the following:
560.799(5)(a)
(a) A business that begins operations in an enterprise zone.
560.799(5)(b)
(b) A business that relocates to an enterprise zone from outside this state, if the business offers compensation and benefits to its employees working in the zone for the same type of work that are at least as favorable as those offered to its employees working outside the zone, as determined by the department.
560.799(5)(c)
(c) A business that expands operations in an enterprise zone, but only if any of the following apply:
560.799(5)(c)1.
1. The business will increase its personnel by at least 10 percent and all of the following apply:
560.799(5)(c)1.a.
a. The business enters into an agreement with the department to claim tax benefits only for years during which the business maintains the increased level of personnel.
560.799(5)(c)1.b.
b. The business offers compensation and benefits for the same type of work to its employees working in the enterprise zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department.
560.799(5)(c)2.
2. The business makes a capital investment in property located in the enterprise zone and all of the following apply:
560.799(5)(c)2.a.
a. The value of the capital investment is equal to at least 10 percent of the business' gross revenues in the preceding tax year attributable to business activities in this state.
560.799(5)(c)2.b.
b. The business enters into an agreement with the department to claim tax benefits only for years during which the business maintains the capital investment.
560.799(5)(c)2.c.
c. The business offers compensation and benefits for the same type of work to its employees working in the zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department.
560.799(6)(a)(a) The department of commerce shall notify the department of revenue when the department of commerce certifies a business to receive tax benefits.
560.799(6)(b)
(b) The department shall revoke a certification under
sub. (5) if the business does any of the following:
560.799(6)(b)1.
1. Supplies false or misleading information to obtain tax benefits.
560.799(6)(b)2.
2. Leaves the enterprise zone to conduct substantially the same business outside of the enterprise zone.
560.799(6)(b)3.
3. Ceases operations in the enterprise zone and does not renew operation of the business or a similar business in the enterprise zone within 12 months.
560.799(6)(c)
(c) The department of commerce shall notify the department of revenue within 30 days of a revocation under
par. (b).
560.799(6)(d)
(d) The department may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment or capital investment levels required by an agreement under
sub. (5) (c).
560.799(6)(e)
(e) The department shall determine the maximum amount of the tax credits under
ss. 71.07 (3w),
71.28 (3w), and
71.47 (3w) that a certified business may claim and shall notify the department of revenue of this amount.
560.799 History
History: 2005 a. 361;
2007 a. 20,
97,
100.
560.7995
560.7995
Airport development zones. 560.7995(1)(a)
(a) "Airport development project" means a business that locates or expands in an area designated as an airport development zone in this state.
560.7995(2)
(2) Designation of an airport development zone. 560.7995(2)(a)(a) Subject to
par. (c), the department may designate an area as an airport development zone if the department determines all of the following:
560.7995(2)(a)1.
1. That an airport development project is desired for the area, as evidenced by a resolution of the governing body of each county, city, village, and town in which territory of the airport development zone will be located.
560.7995(2)(a)2.
2. That the airport development project serves a public purpose.
560.7995(2)(a)3.
3. That the airport development project will likely retain or increase employment in the state.
560.7995(2)(a)4.
4. That the airport development project is not likely to occur or continue without the department's designation of the area as an airport development zone.
560.7995(2)(a)5.
5. That the airport development project will likely positively affect the area.
560.7995(2)(a)6.
6. That an airport is located in the area designated as an airport development zone, that the airport has at least 2 runways at the time of the designation, and that the airport's primary runway is at least 5,000 feet in length and its secondary runway is at least 3,000 feet in length.
560.7995(2)(b)
(b) In making a determination under
par. (a), the department shall consider all of the following:
560.7995(2)(b)1.
1. The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.
560.7995(2)(b)2.
2. The prospects for new investment and economic development in the area.
560.7995(2)(b)3.
3. The amount of investment that is likely to result from the airport development project.
560.7995(2)(b)4.
4. The number of full-time jobs that are likely to be created as a result of the airport development project.
560.7995(2)(b)5.
5. The number of full-time jobs that are likely to be available to the target population as a result of the project.
560.7995(2)(b)6.
6. The competitive effect of designating the area as an airport development zone on other businesses in the area.
560.7995(2)(c)1.1. The department may not designate as an airport development zone, or as any part of an airport development zone, an area that is located within the boundaries of an area that is designated as a development zone under
s. 560.71, as a development opportunity zone under
s. 560.795, or as an enterprise development zone under
s. 560.797.
560.7995(2)(c)2.
2. The department shall give the department of transportation the opportunity to review and comment on any proposed designation under this subsection and the department of transportation may deny any such designation if the department of transportation determines that the designation would compromise the airport's safety or utility. The department of transportation may also review and comment on any land use or compatibility issues related to any proposed designation under this subsection.
560.7995(2)(c)3.
3. A proposed designation under this subsection shall comply with all relevant local ordinances.
