238.308(2) (2)Certification.
238.308(2)(a)(a) The corporation may certify a person to receive tax benefits under this section if all of the following apply:
238.308(2)(a)1. 1. The person is operating or intends to operate a business in this state.
238.308(2)(a)2. 2. The person applies under this section and enters into a contract with the corporation.
238.308(2)(b) (b) The certification of a person under par. (a) may remain in effect for no more than 10 cumulative years.
238.308(3) (3)Eligibility for tax benefits. A person is eligible to receive tax benefits if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under sub. (2), as determined by the corporation under its policies and procedures.
238.308(4) (4)Awards, limits, expiration.
238.308(4)(a)(a) The corporation may award all of the following tax benefits to a person certified under sub. (2):
238.308(4)(a)1. 1. An amount equal to up to 10 percent of the amount of wages that the person paid to an eligible employee in the taxable year.
238.308(4)(a)2. 2. In addition to any tax benefits awarded for an eligible employee under subd. 1., an amount equal to up to 5 percent of the amount of wages that the person paid to the eligible employee in the taxable year, if the eligible employee is employed in an economically distressed area, as determined by the corporation.
238.308(4)(a)3. 3. An amount equal to up to 50 percent of the person's training costs incurred to undertake activities to enhance an eligible employee's general knowledge, employability, and flexibility in the workplace; to develop skills unique to the person's workplace or equipment; or to develop skills that will increase the quality of the person's product.
238.308(4)(a)4. 4. An amount equal to 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.
238.308(4)(a)5. 5. An amount, as determined by the corporation, equal to a percentage of the amount of wages that the person paid to an eligible employee in the taxable year, if the position in which the eligible employee was employed was created or retained in connection with the person's location or retention of the person's corporate headquarters in Wisconsin and the job duties associated with the eligible employee's position involve the performance of corporate headquarters functions.
238.308(4)(b) (b) Subject to a reallocation by the corporation under s. 238.15 (3) (d), the corporation may allocate up to $17,000,000 in tax benefits under this section in 2016 and up to $22,000,000 per year thereafter. Any unused allocation may be carried forward.
238.308(5) (5)Duties.
238.308(5)(a)(a) The corporation may require a person to repay any tax benefits the person claims for a year in which the person failed to employ an eligible employee required by an agreement under sub. (2) (b).
238.308(5)(b) (b) The corporation shall annually verify the information submitted to it by the person claiming tax benefits under ss. 71.07 (3y), 71.28 (3y), and 71.47 (3y).
238.308(5)(c) (c) The corporation shall adopt policies and procedures for the implementation and operation of this section.
Effective date note NOTE: This section is created eff. 1-1-16 by 2015 Wis. Act 55.
238.308 History History: 2015 a. 55.
238.31 238.31 Designation of development zone.
238.31(1) (1) The corporation may designate an area as a development zone if all of the following apply:
238.31(1)(ac) (ac) The corporation has invited a local governing body to nominate the area under s. 238.315.
238.31(1)(am) (am) A local governing body nominates the area as described in s. 238.32.
238.31(1)(b) (b) The corporation has evaluated the local governing body's application as described in s. 238.325.
238.31(1)(d) (d) The area meets the applicable requirements under s. 238.335.
238.31(1)(e) (e) The corporation determines all of the following:
238.31(1)(e)1. 1. That designation of the area as a development zone will serve a public purpose.
238.31(1)(e)2. 2. That designation of the area as a development zone will likely retain or increase employment in the area.
238.31(1)(e)3. 3. That economic development in the area is not likely to occur or continue without the corporation's designation of the area as a development zone.
238.31(1)(e)4. 4. That the area meets at least 3 of the following criteria:
238.31(1)(e)4.a. a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under s. 238.32 (2) or (3) was submitted to the corporation.
238.31(1)(e)4.b. b. The percentage of persons residing in the area who are members of households with household income levels at or below 80% of the statewide median household income is higher than the state average.
238.31(1)(e)4.c. c. The percentage of households in the area receiving unemployment insurance under ch. 108, relief funded by a relief block grant under ch. 49, or aid to families with dependent children under s. 49.19 is higher than the state average.
238.31(1)(e)4.d. d. In the 36 months immediately preceding the date on which the application under s. 238.32 (2) or (3) was submitted to the corporation, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to s. 109.07 (1m).
238.31(1)(e)4.e. e. An employer in the vicinity of the area has given public notice under s. 109.07 (1m) (a) of either a business closing or a mass layoff of at least 25 employees, or 25% of the employees, of a business, whichever is greater, that will result in a number of workers in the area being laid off permanently.
238.31(1)(e)4.f. f. Property values in the area have been declining.
238.31(1)(e)4.g. g. There has been a decline in the population in the area.
238.31(1m) (1m) In making a determination under sub. (1) (e), the corporation shall consider all of the following:
238.31(1m)(a) (a) The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.
238.31(1m)(b) (b) The prospects for new investment and economic development in the area.
238.31(1m)(c) (c) The amount of investment that is likely to result from the designation of the area as a development zone.
238.31(1m)(d) (d) The number of full-time jobs that are likely to be created or retained in the area as a result of its designation as a development zone.
238.31(1m)(e) (e) The number of full-time jobs that are likely to be available to the target population as a result of the designation of the area as a development zone.
238.31(1m)(f) (f) The competitive effect of designating the area as a development zone on other businesses in the vicinity of the area.
238.31(1m)(g) (g) The needs of other areas of the state.
238.31(1m)(h) (h) Any other factors that the corporation considers relevant.
238.31(2) (2) In determining whether an area meets the requirements under sub. (1) (e) or s. 238.335, the corporation may rely on any data provided by the local governing body that the corporation determines is relevant.
238.31(3) (3) The corporation shall do all of the following:
238.31(3)(a) (a) Determine the number of development zones designated under sub. (1) but may not designate more than 22 development zones over the life of the program.
238.31(3)(b) (b) Divide the number of development zones as evenly as possible between metropolitan statistical areas and areas that are not metropolitan statistical areas.
238.31(3)(c)1.1. Designate at least one development zone that is entirely within a 1st class city.
238.31(3)(c)2. 2. Designate at least 2 development zones that are each at least partially within an Indian reservation.
238.31(3)(c)3. 3. Of the development zones that are designated after April 25, 1996, designate one that is in an urban area.
238.31(4) (4) No development zone may be designated under this section after March 6, 2009.
238.31 History History: 1987 a. 328; 1989 a. 31, 336; 1993 a. 16; 1995 a. 209; 1997 a. 27, 39, 103; 2009 a. 2, 87; 2011 a. 32 s. 3419; Stats. 2011 s. 238.31.
238.315 238.315 Invitation to nominate area. If the corporation determines that an area has experienced or is about to experience economic distress, the corporation may invite local governing bodies in the area to nominate the area as a development zone.
238.315 History History: 1997 a. 103; 2011 a. 32 s. 3420; Stats. 2011 s. 238.315.
238.32 238.32 Application by local governing bodies.
238.32(1) (1) A local governing body may nominate an area as a development zone, if the corporation has invited the governing body to nominate the area under s. 238.315 and if the governing body does all of the following:
238.32(1)(a) (a) Holds at least one public hearing on the issue of designating the area as a development zone.
238.32(1)(b) (b) Adopts a resolution or ordinance authorizing it to nominate the area under this section.
238.32(2) (2) A local governing body may nominate the area as a development zone by submitting an application to the corporation in a form prescribed by the corporation. The application shall include all of the following:
238.32(2)(a) (a) A copy of the ordinance or resolution authorizing the local governing body to nominate the area as a development zone.
238.32(2)(b) (b) Transcripts of the public hearing under sub. (1) (a).
238.32(2)(c) (c) Evidence that the area meets at least 3 of the criteria under s. 238.31 (1) (e) 4.
238.32(2)(d) (d) Evidence that the area meets the applicable requirements of s. 238.335.
238.32(2)(e) (e) A description of the land use patterns in the area including:
238.32(2)(e)1. 1. A detailed map of the area.
238.32(2)(e)2. 2. Information about vacant buildings or land available for development.
238.32(2)(f) (f) A description of past and present economic development activities in the area under local, state, or federal programs.
238.32(2)(g) (g) A description of the local governing body's goals for the economic development of the area.
238.32(2)(h) (h) An assessment of the effect of making the area a development zone on full-time jobs available to the targeted population.
238.32(2)(i) (i) Any other information required by the corporation.
238.32(2)(j) (j) Any other information the local governing body considers relevant.
238.32(3) (3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to s. 238.335 (2), if each local governing body complies with subs. (1) and (2).
238.32(5) (5) The corporation may permit a local governing body to revise an application that the corporation determines is inadequate or incomplete.
238.32 History History: 1987 a. 328; 1995 a. 209; 1997 a. 27, 103; 2011 a. 32 s. 3421; Stats. 2011 s. 238.32.
238.325 238.325 Evaluation by corporation.
238.325(1) (1) The corporation shall evaluate applications received under s. 238.32 (2) and (3).
238.325(2) (2) Subject to s. 238.335 (5), the corporation may reduce the size of an area nominated as a development zone, if the corporation determines the boundaries as proposed by the local governing body in an application under s. 238.32 (2) or (3) are inconsistent with the purpose of the development zone program. Any nominated area which is reduced under this subsection need not comply with s. 238.335 (1) and (4).
238.325(3) (3) After evaluating an application submitted under s. 238.32 (2) or (3), the corporation may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the corporation approves the application, the corporation shall designate the area as a development zone, subject to s. 238.31, and notify the local governing body.
238.325 History History: 1987 a. 328; 1995 a. 209; 1997 a. 103; 2011 a. 32 s. 3422; Stats. 2011 s. 238.325.
238.335 238.335 Boundaries and size of development zones.
238.335(1)(1) An area that is located within a metropolitan statistical area may not be nominated or designated as a development zone unless all of the following apply:
238.335(1)(a) (a) The area contains less than 10% of the valuation of the property of the city, village, or town, as determined under s. 70.57, in which the area is located.
238.335(1)(b) (b) If the area is located within a 1st class city, the population of the area as estimated under s. 16.96 is not less than 4,000 and not more than 10% of the city's population, as estimated under s. 16.96.
238.335(1)(c) (c) If the area is located within a village, town, or city other than a 1st class city, the population of the area is not less than 1,000 nor more than 10,000, as estimated under s. 16.96.
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2013-14 Wisconsin Statutes updated through 2015 Wis. Act 60 and all Supreme Court Orders entered before August 26, 2015. Published and certified under s. 35.18. Changes effective after August 26, 2015 are designated by NOTES. (Published 8-26-15)