LRB-1258/2
JS&PJK:kaf:kat
1997 - 1998 LEGISLATURE
February 19, 1997 - Introduced by Senators Grobschmidt, Welch, Wirch, Schultz,
Buettner
and Burke, cosponsored by Representatives Riley, Green, La Fave,
Notestein, Plale, Dobyns, Bock, Duff
and Grothman. Referred to Committee
on Economic Development, Housing and Government Operations.
SB86,2,2 1An Act to repeal 71.07 (2di) (c), 71.07 (2dL) (d), 71.10 (4) (gd), (ge), (gg), (gm),
2(gr), (gs) and (gt), 71.28 (1di) (c), 71.28 (1dL) (d), 71.30 (3) (eb), (ec), (eg), (em),
3(en) and (eo), 71.47 (1di) (c), 71.47 (1dL) (d) and 71.49 (1) (eb), (ec), (eg), (em),
4(en) and (eo); to amend 71.07 (2dd) (c), 71.07 (2de) (a) (intro.), 71.07 (2de) (b),
571.07 (2di) (b) 2., 71.07 (2dj) (h), 71.07 (2dL) (c) 2., 71.07 (2ds) (h), 71.10 (4) (i),
671.28 (1dd) (c), 71.28 (1de) (a) (intro.), 71.28 (1de) (b), 71.28 (1di) (b) 2., 71.28
7(1dj) (h), 71.28 (1dL) (c) 2., 71.28 (1ds) (h), 71.30 (3) (f), 71.47 (1dd) (c), 71.47
8(1de) (a) (intro.), 71.47 (1de) (b), 71.47 (1di) (b) 2., 71.47 (1dj) (h), 71.47 (1dL) (c)
92., 71.47 (1ds) (h), 71.49 (1) (f), 560.745 (2) (a) and 560.75 (9) (b); to repeal and
10recreate
71.07 (2dr) (f); and to create 20.835 (2) (co), 20.835 (2) (cp) and 20.835
11(2) (cr) of the statutes; relating to: the development zones environmental

1remediation credit, increasing the total tax benefits limit under the
2development zone program and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, taxpayers may claim an income tax or franchise tax credit
for 7.5% of the amount expended for environmental remediation in a development
zone or an enterprise development zone. This bill increases the percentage to 33%.
Under current law all development zones tax credits, except the research credit,
which is available only to individuals, are refundable (a check is issued if the amount
of the credit exceeds the amount of tax due) if the claimant is located on an Indian
reservation and is an American Indian, on Indian business or a tribal enterprise.
Under this bill, all development zones tax credits are refundable regardless of the
claimant.
Under the development zone program, which is administered by the
department of commerce, a person conducting economic activity in an area that has
been designated as a development zone may claim certain tax benefits. The
department of commerce must allocate to each area that is designated as a
development zone the total amount of tax benefits that may be claimed by persons
conducting economic activity in the area. The amount that is allocated is a portion
of the total tax benefits that may be claimed under the entire program. Under
current law, $28,155,000 may be claimed in tax benefits under the entire program.
The bill increases this amount to $40,000,000 and specifies that of this amount at
least $3,000,000 must be allocated to development zones that are located in a 1st
class city.
Also under current law, 65% of the tax benefits in a development zone that is
located in a 1st class city must be used for development zones jobs credits. The bill
excludes tax benefits used for development zones environmental remediation credits
from the total tax benefits upon which the percentage is based.
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:
SB86, s. 1 3Section 1. 20.835 (2) (co) of the statutes is created to read:
SB86,2,64 20.835 (2) (co) Development zones environmental remediation tax credit. A sum
5sufficient to make the payments under ss. 71.07 (2de) (b), 71.28 (1de) (b) and 71.47
6(1de) (b).
SB86, s. 2 7Section 2. 20.835 (2) (cp) of the statutes is created to read:
SB86,3,2
120.835 (2) (cp) Development zones day care credit. A sum sufficient to make the
2payments under ss. 71.07 (2dd) (c), 71.28 (1dd) (c) and 71.47 (1dd) (c).
SB86, s. 3 3Section 3. 20.835 (2) (cr) of the statutes is created to read:
SB86,3,54 20.835 (2) (cr) Development zones research credit. A sum sufficient to make the
5payments under s. 71.07 (2dr).
SB86, s. 4 6Section 4. 71.07 (2dd) (c) of the statutes is amended to read:
SB86,3,87 71.07 (2dd) (c) Subsection (2di) (b), (c), (d) 1., (f) and (g), as it applies to the
8credit under sub. (2di), applies to the credit under this subsection.
SB86, s. 5 9Section 5. 71.07 (2de) (a) (intro.) of the statutes is amended to read:
SB86,3,1810 71.07 (2de) (a) (intro.) Except as provided in s. 73.03 (35), for any taxable year
11for which a person is certified under s. 560.765 (3) and begins business operations
12in a zone under s. 560.71 after July 29, 1995, or certified under s. 560.797 (4) (a), for
13each zone for which the person is certified or entitled the person may claim as a credit
14against taxes otherwise due under this subchapter an amount equal to 7.5% 33% of
15the amount that the person expends to remove or contain environmental pollution,
16as defined in s. 299.01 (4), in the zone or to restore soil or groundwater that is affected
17by environmental pollution, as defined in s. 299.01 (4), in the zone if the person
18fulfills all of the following requirements:
SB86, s. 6 19Section 6. 71.07 (2de) (b) of the statutes is amended to read:
SB86,3,2120 71.07 (2de) (b) Subsection (2di) (b), (c), (d), (f) and (g), as it applies to the credit
21under sub. (2di), applies to the credit under this subsection.
SB86, s. 7 22Section 7. 71.07 (2di) (b) 2. of the statutes is amended to read:
SB86,4,823 71.07 (2di) (b) 2. If the claimant is located on an Indian reservation, as defined
24in s. 560.86 (5), and is an American Indian, as defined in s. 560.86 (1), an Indian
25business, as defined in s. 560.86 (4), or a tribal enterprise, and if
the allowable

1amount of the credit under this subsection exceeds the taxes otherwise due under
2this chapter on or measured by the claimant's income, the amount of the credit not
3used as an offset against those taxes shall be certified to the department of
4administration for payment to the claimant by check, share draft or other draft. In
5this subdivision, "tribal enterprise" means a business that is at least 51% owned and
6controlled by the governing body of one or more Indian tribes, is actively managed
7by the governing body, or by the designee of the governing body, of one or more Indian
8tribes and is currently performing a useful business function.
SB86, s. 8 9Section 8. 71.07 (2di) (c) of the statutes is repealed.
SB86, s. 9 10Section 9. 71.07 (2dj) (h) of the statutes is amended to read:
SB86,4,1211 71.07 (2dj) (h) The rules under sub. (2di) (b) and (c) as they apply to the credit
12under that subsection apply to the credit under this subsection.
SB86, s. 10 13Section 10. 71.07 (2dL) (c) 2. of the statutes is amended to read:
SB86,4,2014 71.07 (2dL) (c) 2. If the claimant is located on an Indian reservation, as defined
15in s. 560.86 (5), and is an American Indian, as defined in s. 560.86 (1), an Indian
16business, as defined in s. 560.86 (4), or a tribal enterprise, as defined in sub. (2di) (b)
172., and if
the allowable amount of the credit under par. (a) exceeds the taxes otherwise
18due under this chapter on or measured by the claimant's income, the amount of the
19credit not used as an offset against those taxes shall be certified to the department
20of administration for payment to the claimant by check, share draft or other draft.
SB86, s. 11 21Section 11. 71.07 (2dL) (d) of the statutes is repealed.
SB86, s. 12 22Section 12. 71.07 (2dr) (f) of the statutes is repealed and recreated to read:
SB86,4,2423 71.07 (2dr) (f) Carry-over. The rules under sub. (2di) (b) as they apply to the
24credit under that subsection apply to the credit under this subsection.
SB86, s. 13 25Section 13. 71.07 (2ds) (h) of the statutes is amended to read:
SB86,5,2
171.07 (2ds) (h) The rules under sub. (2di) (b) and (c) as they apply to the credit
2under that subsection apply to the credit under this subsection.
SB86, s. 14 3Section 14. 71.10 (4) (gd), (ge), (gg), (gm), (gr), (gs) and (gt) of the statutes are
4repealed.
SB86, s. 15 5Section 15. 71.10 (4) (i) of the statutes is amended to read:
SB86,5,156 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
7preservation credit under subch. IX, homestead credit under subch. VIII,
8development zones day care credit under s. 71.07 (2dd), development zones
9environmental remediation credit under s. 71.07 (2de), development zones
10investment credit under s. 71.07 (2di), development zones jobs credit under s. 71.07
11(2dj), development zones location credit under s. 71.07 (2dL), development zones
12research credit under s. 71.07 (2dr), development zones sales tax credit under s.
1371.07 (2ds),
farmland tax relief credit under s. 71.07 (3m), farmers' drought property
14tax credit under s. 71.07 (2fd), earned income tax credit under s. 71.07 (9e), estimated
15tax payments under s. 71.09, and taxes withheld under subch. X.
SB86, s. 16 16Section 16. 71.28 (1dd) (c) of the statutes is amended to read:
SB86,5,1817 71.28 (1dd) (c) Subsection (1di) (b), (c), (d) 1., (f) and (g), as it applies to the
18credit under sub. (1di), applies to the credit under this subsection.
SB86, s. 17 19Section 17. 71.28 (1de) (a) (intro.) of the statutes is amended to read:
SB86,6,420 71.28 (1de) (a) (intro.) Except as provided in s. 73.03 (35), for any taxable year
21for which a person is certified under s. 560.765 (3) and begins business operations
22in a zone under s. 560.71 after July 29, 1995, entitled under s. 560.795 (3) (a) and
23begins business operations in a zone under s. 560.795 after July 29, 1995, or certified
24under s. 560.797 (4) (a), for each zone for which the person is certified or entitled the
25person may claim as a credit against taxes otherwise due under this subchapter an

1amount equal to 7.5% 33% of the amount that the person expends to remove or
2contain environmental pollution, as defined in s. 299.01 (4), in the zone or to restore
3soil or groundwater that is affected by environmental pollution, as defined in s.
4299.01 (4), in the zone if the person fulfills all of the following requirements:
SB86, s. 18 5Section 18. 71.28 (1de) (b) of the statutes is amended to read:
SB86,6,76 71.28 (1de) (b) Subsection (1di) (b), (c), (d), (f) and (g), as it applies to the credit
7under sub. (1di), applies to the credit under this subsection.
SB86, s. 19 8Section 19. 71.28 (1di) (b) 2. of the statutes is amended to read:
SB86,6,169 71.28 (1di) (b) 2. If the claimant is located on an Indian reservation, as defined
10in s. 560.86 (5), and is an American Indian, as defined in s. 560.86 (1), an Indian
11business, as defined in s. 560.86 (4), or a tribal enterprise, as defined in s. 71.07 (2di)
12(b) 2., and if
the allowable amount of the credit under this subsection exceeds the
13taxes otherwise due under this chapter on or measured by the claimant's income, the
14amount of the credit not used as an offset against those taxes shall be certified to the
15department of administration for payment to the claimant by check, share draft or
16other draft.
SB86, s. 20 17Section 20. 71.28 (1di) (c) of the statutes is repealed.
SB86, s. 21 18Section 21. 71.28 (1dj) (h) of the statutes is amended to read:
SB86,6,2019 71.28 (1dj) (h) The rules under sub. (1di) (b) and (c) as they apply to the credit
20under that subsection apply to the credit under this subsection.
SB86, s. 22 21Section 22. 71.28 (1dL) (c) 2. of the statutes is amended to read:
SB86,7,422 71.28 (1dL) (c) 2. If the claimant is located on an Indian reservation, as defined
23in s. 560.86 (5), and is an American Indian, as defined in s. 560.86 (1), an Indian
24business, as defined in s. 560.86 (4), or a tribal enterprise, as defined in s. 71.07 (2di)
25(b) 2., and if
the allowable amount of the credit under par. (a) exceeds the taxes

1otherwise due under this chapter on or measured by the claimant's income, the
2amount of the credit not used as an offset against those taxes shall be certified to the
3department of administration for payment to the claimant by check, share draft or
4other draft.
SB86, s. 23 5Section 23. 71.28 (1dL) (d) of the statutes is repealed.
SB86, s. 24 6Section 24. 71.28 (1ds) (h) of the statutes is amended to read:
SB86,7,87 71.28 (1ds) (h) The rules under sub. (1di) (b) and (c) as they apply to the credit
8under that subsection apply to the credit under this subsection.
SB86, s. 25 9Section 25. 71.30 (3) (eb), (ec), (eg), (em), (en) and (eo) of the statutes are
10repealed.
SB86, s. 26 11Section 26. 71.30 (3) (f) of the statutes is amended to read:
SB86,7,1912 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28
13(1fd), farmland preservation credit under subch. IX, development zones day care
14credit under s. 71.28 (1dd), development zones environmental remediation credit
15under s. 71.28 (1de), development zones investment credit under s. 71.28 (1di),
16development zones jobs credit under s. 71.28 (1dj), development zones location credit
17under s. 71.28 (1dL), development zones sales tax credit under s. 71.28 (1ds),

18farmland tax relief credit under s. 71.28 (2m) and estimated tax payments under s.
1971.29.
SB86, s. 27 20Section 27. 71.47 (1dd) (c) of the statutes is amended to read:
SB86,7,2221 71.47 (1dd) (c) Subsection (1di) (b), (c), (d) 1., (f) and (g), as it applies to the
22credit under sub. (1di), applies to the credit under this subsection.
SB86, s. 28 23Section 28. 71.47 (1de) (a) (intro.) of the statutes is amended to read:
SB86,8,724 71.47 (1de) (a) (intro.) Except as provided in s. 73.03 (35), for any taxable year
25for which a person is certified under s. 560.765 (3) and begins business operations

1in a zone under s. 560.71 after July 29, 1995, or certified under s. 560.797 (4) (a), for
2each zone for which the person is certified or entitled the person may claim as a credit
3against taxes otherwise due under this subchapter an amount equal to 7.5% 33% of
4the amount that the person expends to remove or contain environmental pollution,
5as defined in s. 299.01 (4), in the zone or to restore soil or groundwater that is affected
6by environmental pollution, as defined in s. 299.01 (4), in the zone if the person
7fulfills all of the following requirements:
SB86, s. 29 8Section 29. 71.47 (1de) (b) of the statutes is amended to read:
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