SB394: Bill Text

Under current law, a person may claim an income tax credit for up to 50% of the person's environmental remediation expenses incurred in a development zone. Under current law, the credit may not be transferred between persons, and a municipality or nonprofit organization that engages in remedial remediation activities in a development zone may not claim a credit.

This bill provides that any person eligible to claim a credit for remediation expenses incurred in a development zone may transfer the right to claim the credit to any other person subject to taxation in this state. In addition, the bill provides that a person may claim a credit for 50% of the amount expended by a municipality or a tax-exempt or nonprofit organization for environmental remediation in a development zone, if the municipality or organization has entered into an exclusive written agreement with the person claiming the credit. The bill requires the department of revenue (DOR) to promulgate rules implementing the credit transfer provisions. [Sections 21 to 23 and 50 (3).]

• Modify the Land Recycling Loan Program

Under the land recycling loan program, the state provides loans to cities, villages, towns and counties (political subdivisions) for projects to remedy environmental contamination at sites owned by political subdivisions where the environmental contamination has affected, or threatens to affect, groundwater or surface water.

The bill provides that land recycling loans may not be made for the purpose of refinancing site investigations. [Section 34.]

• Modify Environmental Remediation Tax Incremental Financing District

Under current law, a city, village, town or county (political subdivision) may create an environmental remediation tax incremental district (ERTID) to defray the costs of remediating contaminated property that is owned by the political subdivision. The mechanism for financing costs that are eligible for remediation is very similar to the mechanism under the tax incremental financing (TIF) program. If the remediated property is transferred to another person and is then subject to property taxation, environmental remediation (ER) tax incremental financing may be used to allocate some of the property taxes that are levied on the property to the political subdivision to pay for the costs of remediation.

Under current law, as amended by 1999 Wisconsin Act 9, "eligible costs" include capital costs, financing costs and certain administrative and professional service costs incurred for the investigation, removal, containment or monitoring of, the environment affected by, environmental pollution, property acquisition costs and demolition costs. The bill expands "eligible costs" to include the cancellation of delinquent taxes.

Also, if the property that is being remediated is sold by a political subdivision, the bill prohibits it from being sold or transferred to any person who is responsible for the environmental pollution that is remediated. [Sections 13, 14 and 50 (1 ).]

Current law, as amended by 1999 Wisconsin Act 9, provides that a voluntary party is not liable with respect to a discharge of a hazardous substance on or originating from a property if the discharge occurred before an environmental investigation is complete but was not discovered in the course of that investigation and if certain other requirements are met. Those other requirements include: the environmental investigation is approved by the department of natural resources (DNR); the voluntary party enters into a clean-up agreement with DNR, if required by DNR; the voluntary party obtains and maintains insurance to cover the costs of restoring the environment and the discharge that is discovered before the original cleanup is complete. The bill modifies these requirements to exempt from liability voluntary parties who discover a discharge after doing all of the above and after conducting a second environmental investigation and having it approved by DNR. Thus, under the bill, a voluntary party is only exempt from the requirements to clean up hazardous substance discharge discovered after the second environmental investigation is approved. [Sections 36 and 37.]

• Expand the Liability Protections for Local Units of Government

Generally, current law provides that a local governmental unit is immune from civil liability for a discharge of a hazardous substance on or from property formerly owned or controlled by the local governmental unit if the property is no longer owned by the local governmental unit at the time that the discharge is discovered and if the property was acquired by the local governmental unit in certain ways. Those ways include the acquisition of the property through tax delinquency proceedings, as the result of an order of a bankruptcy court, through condemnation or in pursuit of slum clearance or blight elimination.

The bill expands this immunity to property acquired in these ways that is still owned or controlled by the local unit of government at the time the discharge is discovered. [Section 40 .]

•Require Use of Natural Attenuation in Areawide Groundwater Approaches and Consideration of Groundwater Use in Conducting Cleanups

Current law gives DNR authority to promulgate administrative rules governing cleanup of contaminated property. Under current administrative rules, one of the criteria for case closure approval in a situation in which hazardous substance discharges into groundwater exceed enforcement standards or preventive action limits is that groundwater contamination exceeding those standards or limits will not migrate beyond the boundaries of the property or properties for which groundwater use restrictions have been recorded.

Under the bill, when determining the criteria for closure of a case involving groundwater contamination exceeding enforcement standards or preventive action limits, DNR is required to consider institutional controls, including municipal ordinances, that provide adequate notice to the public of groundwater contamination in the area affected by the groundwater contamination to be equivalent to recorded groundwater use restrictions. [Sections 35, 38 and 41.]

SB394, s. 1 Section 1 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB394, s. 2 Section 2 . 20.255 (2) (dr) of the statutes is created to read:

SB394,9,5 20.255 (2) (dr) Foreign language immersion grants. The amounts in the schedule for foreign language immersion grants under s. 115.455.

SB394, s. 3 Section 3 . 20.255 (3) (er) of the statutes is created to read:

SB394,9,9 20.255 (3) (er) Wisconsin world geography fund. The amounts in the schedule for a grant to the Wisconsin world geography fund under s. 115.28 (45). No moneys may be encumbered under this paragraph after June 30, 2001.

SB394, s. 4 Section 4. 20.292 (1) (kd) of the statutes is created to read:

SB394,9,14 20.292 (1) (kd) Job retention skills development programs. All moneys transferred from the appropriation account under s. 20.445 (3) (md) for job retention skills development programs. No moneys may be encumbered from this appropriation after June 30, 2001.

SB394, s. 5 Section 5. 20.445 (3) (md) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB394,10,8 20.445 (3) (md) Federal block grant aids. The amounts in the schedule, less the amounts withheld under s. 49.143 (3), for aids to individuals or organizations and to be transferred to the appropriation accounts under sub. (7) (kc) and ss. 20.255 (2) (kh) and (kp), 20.292 (1) (kd), 20.433 (1) (k), 20.434 (1) (kp) and (ky), 20.435 (3) (kc), (kd), (km) and (ky), (5) (ky), (7) (kw) and (ky) and (8) (kx), 20.465 (4) (k) and 20.835 (2) (kf). All block grant moneys received for these purposes from the federal government or any of its agencies and all moneys recovered under s. 49.143 (3) shall be credited to this appropriation account.

SB394, s. 6 Section 6 . 38.15 (3) (c) 3. and 4. of the statutes, as created by 1999 Wisconsin Act 9, are amended to read:

SB394,10,11 38.15 (3) (c) 3. The capital expenditure is made before January 1, 2002 2003.

SB394,10,14 4. The total amount of capital expenditures made by the district board under this paragraph does not exceed $5,000,000, excluding moneys received from gifts, grants or federal funds.

SB394, s. 7 Section 7 . 38.34 of the statutes is created to read:

SB394,10,23 38.34 Job retention skills development programs. (1) Each district board shall make available to all employers in the district a job retention skills development program in order to assist employers to retain new employes, build job skill levels of those employes and assist those employes in attaining higher wages and long-term careers. To the extent practicable, the district board shall offer the program at employment sites. The program shall emphasize job retention skills development for employes with gross incomes at or below 200% of the poverty line, as defined in s. 49.001 (5), who are any of the following:

SB394,10,25 (a) Current or former recipients of public assistance, including participants in W-2 employment positions under s. 49.147.

SB394,11,1 (b) Employes within the first 6 months of employment with their employer.

SB394,11,2 (c) Entry-level employes.

SB394,11,3 (2) The program shall provide training in all of the following skills:

SB394,11,5 (a) Skills needed to achieve punctuality and consistency in attendance at employment.

SB394,11,6 (b) Skills needed to effectively work in a team.

SB394,11,7 (c) Skills needed to effectively communicate with supervisors and coworkers.

SB394,11,9 (d) Skills needed to solve basic workplace-related personal and interpersonal problems.

SB394,11,13 (3) (a) The board shall supervise, and establish minimum requirements for, the program. Except as provided in sub. (2), the board shall determine the length and content of the program after consultation with employers, district boards, W-2 agencies, local units of government and labor organizations.

SB394,11,17 (b) In consultation with employers, district boards and the department of workforce development, the board shall develop standards for assessing the job retention skills, including the skills specified in sub. (2), of employes before and after their participation in the program.

SB394,11,20 (4) (a) To the extent practicable, the district board shall assist employers in providing ongoing job retention skills development and reinforcement activities in the workplace.

SB394,11,22 (b) The district board may charge employers a fee for the program and services offered under this section.

SB394,11,23 (5) This section does not apply after December 31, 2004.

SB394, s. 8 Section 8 . 49.1475 of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

SB394,12,13 49.1475 Follow-up services. Following any follow-up period required by the contract entered into under s. 49.143, a Wisconsin works agency may shall provide case management services for an individual who moves from a Wisconsin works employment position to unsubsidized employment to help the individual retain the unsubsidized employment. Case management services may include the provision of employment skills training; English as a 2nd language classes, if the Wisconsin works agency determines that the course will facilitate the individual's efforts to retain employment; a course of study meeting the standards established under s. 115.29 (4) for the granting of a declaration of equivalency of high school graduation; or other remedial education courses. A Wisconsin works agency shall coordinate case management services with a program offered by a technical college under s. 38.34. The Wisconsin works agency may provide case management services regardless of the individual's income and assets levels.

SB394, s. 9 Section 9 . 49.157 of the statutes is renumbered 49.157 (1) and amended to read:

SB394,13,2 49.157 (1) A Wisconsin works agency may provide transportation assistance in the manner prescribed by the department. In addition to any other eligibility criteria established by the department, an individual is eligible for transportation assistance if the gross income of the Wisconsin works group of which the individual is a member is at or below 165% of the poverty line. In calculating gross income under this subsection, the Wisconsin works agency shall include the items specified in s. 49.145 (3) (b) 1. and 3. A noncustodial parent of a dependent child is eligible for transportation assistance under this subsection if the dependent child's custodial parent is a participant and if the noncustodial parent is subject to a child support order. The Wisconsin works agency shall limit any financial assistance granted under this subsection to financial assistance for public transportation if a form of public transportation that meets the needs of the participant is available.

SB394, s. 10 Section 10 . 49.157 (2) of the statutes is created to read:

SB394,13,13 49.157 (2) A community steering committee established under s. 49.143 (2) (a) shall establish an advisory committee on transportation strategies and planning. The advisory committee shall consist of local transit or transportation providers, employers, child care providers, a representative of a community organization that serves participants, a representative of a Wisconsin works agency and other persons considered appropriate by the steering committee. The advisory committee shall make recommendations to the steering committee on ways to provide affordable and sufficient transportation options to low-income workers to enable the workers to access employment opportunities, child care services and other services conducive to stable employment.

SB394, s. 11 Section 11 . 49.157 (3) of the statutes is created to read:

SB394,13,18 49.157 (3) A Wisconsin works agency shall, in a manner prescribed by the department, provide to the department an accounting of the amount expended on Wisconsin works-related transportation services in each year of the agency's contract.

SB394, s. 12 Section 12 . 49.175 (1) (zp) of the statutes is created to read:

SB394,13,23 49.175 (1) (zp) Job retention skills development programs. For the transfer of moneys to the technical college system board for implementation costs for job retention skills development programs under s. 38.34, $200,000 in fiscal year 1999-2000.

SB394, s. 13 Section 13 . 66.462 (1) (c) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB394,14,20 66.462 (1) (c) "Eligible costs" means capital costs, financing costs and administrative and professional service costs, incurred or estimated to be incurred by a political subdivision, for the investigation, removal, containment or monitoring of, or the restoration of soil, air, surface water, sediments or groundwater affected by, environmental pollution, including monitoring costs incurred within 2 years after the date on which the department of natural resources certifies that environmental pollution on the property has been remediated, cancellation of delinquent taxes, property acquisition costs, demolition costs including asbestos removal, and removing and disposing of underground storage tanks or abandoned containers, as defined in s. 292.41 (1), except that for any parcel of land "eligible costs" shall be reduced by any amounts received from persons responsible for the discharge, as defined in s. 292.01 (3), of a hazardous substance on the property to pay for the costs of remediating environmental pollution on the property, by any amounts received, or reasonably expected by the political subdivision to be received, from a local, state or federal program for the remediation of contamination in the district that do not require reimbursement or repayment and by the amount of net gain from the sale of the property by the political subdivision. "Eligible costs" associated with groundwater affected by environmental pollution include investigation and remediation costs for groundwater that is located in, and extends beyond, the property that is being remediated.

SB394, s. 14 Section 14 . 66.462 (2) of the statutes, as affected by 1999 Wisconsin Act 9, section 1634a, is renumbered 66.462 (2) (a) and amended to read:

SB394,15,11 66.462 (2) (a) A political subdivision that develops, and whose governing body approves, a written proposal to remediate environmental pollution may use an environmental remediation tax increment to pay the eligible costs of remediating environmental pollution on contiguous parcels of property that are located within the political subdivision and that are not part of a tax incremental district created under s. 66.46, as provided in this section, except that a political subdivision may use an environmental remediation tax increment to pay the cost of remediating environmental pollution of groundwater without regard to whether the property above the groundwater is owned by the political subdivision. If the political subdivision owns the property that is being remediated, the political subdivision may not sell or otherwise transfer the property to any person who is responsible for the environmental pollution that is remediated. No political subdivision may submit an application to the department under sub. (4) until the joint review board approves the political subdivision's written proposal under sub. (3).

SB394, s. 15 Section 15 . 71.05 (6) (a) 15. of the statutes is amended to read:

SB394,15,17 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s) and (5r) not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

SB394, s. 16 Section 16. 71.07 (5r) of the statutes is created to read:

SB394,15,21 71.07 (5r) Productivity enhancement training credit. (a) In this subsection, "productivity enhancement training expenses" has the meaning given in s. 560.27 (1).

SB394,16,2 (b) Any partner, member of a limited liability company or a shareholder of a tax-option corporation may claim as a credit against taxes otherwise due under s. 71.02 an amount that is equal to 100% of the amount of the partner's, member's or shareholder's productivity enhancement training expenses certified by the department of commerce under s. 560.27 in the tax year for which the expenses are certified, but that is not to exceed $7,500.

SB394,16,4 (c) The carry forward provisions of s. 71.28 (5r) (c) and (f) as they apply to the credit under s. 71.28 (5r) apply to the credit under this subsection.

SB394,16,9 (d) A partner, member of a limited liability company or a shareholder of a tax-option corporation may not claim the credit under par. (b) for any productivity enhancement training expenses that the partner, member or shareholder deducted from gross income for Wisconsin tax purposes under section 162 of the Internal Revenue Code.

SB394,16,17 (e) Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their productivity enhancement training expenses certified under s. 560.27. A partnership, limited liability company or tax-option corporation shall compute the amount of credit that each of its partners, members or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB394,16,19 (f) No credit may be taken under this subsection for taxable years beginning after December 31, 2008.

SB394, s. 17 Section 17. 71.08 (1) (intro.) of the statutes is amended to read:

SB394,17,4 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3) and (5r) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3) and (5r) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

SB394, s. 18 Section 18. 71.10 (4) (k) of the statutes is created to read:

SB394,17,6 71.10 (4) (k) Productivity enhancement training credit under s. 71.07 (5r).

SB394, s. 19 Section 19. 71.21 (4) of the statutes is amended to read:

SB394,17,10 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2dx) and, (3s) and (5r) and passed through to partners shall be added to the partnership's income.

SB394, s. 20 Section 20 . 71.26 (2) (a) of the statutes is amended to read:

SB394,18,2 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code Internal Revenue Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and, (1dx) and (5r) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the internal revenue code Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB394, s. 21 Section 21 . 71.28 (1dx) (b) 1. of the statutes is amended to read:

SB394,18,5 71.28 (1dx) (b) 1. Fifty percent of the amount expended by the person for environmental remediation in a development zone.

SB394, s. 22 Section 22. 71.28 (1dx) (b) 1m. of the statutes is created to read:

SB394,18,14 71.28 (1dx) (b) 1m. Fifty percent of the amount expended by a municipality, as defined in s. 292.01 (11), or an organization that is exempt from federal income taxation under section 501 (c) (3) of the Internal Revenue Code for environmental remediation in a development zone, if the municipality or organization has entered into an exclusive written agreement with the person claiming the credit that approves of the person claiming the credit based on the expenditures of the municipality or organization. The department shall promulgate rules to implement this subdivision.

SB394, s. 23 Section 23 . 71.28 (1dx) (f) of the statutes is created to read:

SB394,18,19 71.28 (1dx) (f) Transfer of credits. Any person who is eligible to claim credit under par. (b) 1. may transfer the right to claim the credit under par. (b) 1. to any other person who is subject to taxation under this chapter. The department shall promulgate rules to implement this paragraph.

SB394, s. 24 Section 24 . 71.28 (5r) of the statutes is created to read:

SB394,18,23 71.28 (5r) Productivity enhancement training credit. (a) In this subsection, "productivity enhancement training expenses" has the meaning given in s. 560.27 (1).

SB394,19,3 (b) Any corporation may claim as a credit against taxes otherwise due under s. 71.23 an amount that is equal to 100% of the amount of the corporation's productivity enhancement training expenses certified by the department of commerce under s. 560.27 in the tax year for which the expenses are certified, but that is not to exceed $7,500.

SB394,19,7 (c) Any corporation receiving a credit under this subsection may carry forward to the next succeeding 15 taxable years the amount of the credit not offset against taxes for the year in which the productivity enhancement training expenses were incurred.

SB394,19,10 (d) A corporation may not claim the credit under par. (b) for any productivity enhancement training expenses that the corporation deducted from gross income for Wisconsin tax purposes under section 162 of the Internal Revenue Code.

SB394,19,18 (e) Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their productivity enhancement training expenses certified under s. 560.27. A partnership, limited liability company or tax-option corporation shall compute the amount of credit that each of its partners, members or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB394,19,22 (f) No credit may be taken under this subsection for taxable years beginning after December 31, 2008. Credits under this subsection that are claimed for taxable years beginning before December 31, 2008 may be carried forward to taxable years beginning after December 31, 2008.

SB394, s. 25 Section 25. 71.30 (3) (g) of the statutes is created to read:

SB394,19,24 71.30 (3) (g) Productivity enhancement training credit under s. 71.28 (5r).