LRB-3136/1
MES/RJM/JK:wlj:pg
2003 - 2004 LEGISLATURE
September 17, 2003 - Introduced by Senators Harsdorf, Lassa, Zien, Jauch,
Schultz, Kanavas, Stepp, Wirch and Roessler, cosponsored by
Representatives Suder, Nass, Vruwink, Hahn, Pettis, Albers, Friske,
Seratti, Towns, McCormick, Hines, Jensen, Ainsworth, Townsend, Krawczyk
and Petrowski. Referred to Select Committee on Job Creation.
SB248,1,8
1An Act to renumber and amend 71.07 (3g) (a) 2., 71.28 (3g) (a) 2., 71.47 (3g)
2(a) 2. and 560.96 (1);
to amend 71.07 (3g) (a) 3., 71.28 (3g) (a) 3., 71.47 (3g) (a)
33. and 560.96 (3) (b) 1.; and
to create 71.07 (3g) (a) 2. a., 71.07 (3g) (a) 2. b., 71.07
4(3g) (e), 71.07 (3g) (f), 71.28 (3g) (a) 2. a., 71.28 (3g) (a) 2. b., 71.28 (3g) (e), 71.28
5(3g) (f), 71.47 (3g) (a) 2. a., 71.47 (3g) (a) 2. b., 71.47 (3g) (e), 71.47 (3g) (f), 560.96
6(1) (a), 560.96 (1) (b) and 560.96 (5) (j) of the statutes;
relating to: the method
7of calculating technology zone tax credits and the certification of businesses
8under the technology zone program.
Analysis by the Legislative Reference Bureau
Under current law, a business that is located in a technology zone and certified
by the Department of Commerce (Commerce) to receive tax credits may claim the
credits in an amount, as adjusted by Commerce, that is equal to the sum of the
property taxes, income and franchise taxes, and sales and use taxes that the business
paid in the taxable year. One factor Commerce must consider in determining
whether to certify a business is the number of new jobs the business is likely to create.
Under current law, generally, partnerships, limited liability companies, and
tax-option corporations do not pay income or franchise taxes, but, instead, pass their
tax liability on to their partners, members, and shareholders who report the income
received from such entities.
Under this bill, the credit may be claimed in an amount, as adjusted by
Commerce, that is equal to the sum of the real and personal property taxes that the
business paid in the taxable year, an amount equal to 10 percent of the amount of
capital investments that are made by the business in the technology zone, and an
amount equal to 15 percent of the amount that is spent for the first 12 months of
wages for each full-time job that is created in a technology zone after certification.
Capital investments mean the purchase price of depreciable, tangible personal
property and the amount that is expended to acquire, construct, rehabilitate,
remodel, or repair real property in a technology zone.
The bill requires that capital investments, for which a credit is claimed, must
be used in the technology zone during the period that the business is certified by
Commerce. The bill also requires that the claimant must submit verification to the
Department of Revenue that Commerce has certified the claimant's business, and
that Commerce has verified the price and the location of the investments for which
a credit is claimed. In addition, this bill specifies that, in determining whether to
certify a business, Commerce must consider the number of full-time jobs the
business is likely to create. The bill defines "full-time job," with certain exceptions,
to mean a regular, nonseasonal full-time position in which an individual, as a
condition of employment, is required to work at least 2,080 hours per year, including
paid leave and holidays, and for which the individual is paid at least 200 percent of
the federal minimum wage and receives benefits that are not required by federal or
state law.
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:
SB248, s. 1
1Section
1. 71.07 (3g) (a) 2. of the statutes is renumbered 71.07 (3g) (a) 2. (intro.)
2and amended to read:
SB248,2,63
71.07
(3g) (a) 2. (intro.)
The amount of income and franchise taxes imposed
4under s. 71.02 that the business paid in the taxable year. Ten percent of the following
5amounts of capital investments that are made by the business in the technology zone
6in the year to which the claim relates:
SB248, s. 2
7Section
2. 71.07 (3g) (a) 2. a. of the statutes is created to read:
SB248,2,98
71.07
(3g) (a) 2. a. The purchase price of depreciable, tangible personal
9property.
SB248, s. 3
1Section
3. 71.07 (3g) (a) 2. b. of the statutes is created to read:
SB248,3,32
71.07
(3g) (a) 2. b. The amount expended to acquire, construct, rehabilitate,
3remodel, or repair real property in a technology zone.
SB248, s. 4
4Section
4. 71.07 (3g) (a) 3. of the statutes is amended to read:
SB248,3,95
71.07
(3g) (a) 3.
The amount of sales and use taxes imposed under ss. 77.52,
677.53, and 77.71 that the business paid in the taxable year Fifteen percent of the
7amount that is spent for the first 12 months of wages for each full-time job that is
8created in a technology zone after certification. "Full-time job" has the meaning
9given in s. 560.96 (1) (a).
SB248, s. 5
10Section
5. 71.07 (3g) (e) of the statutes is created to read:
SB248,3,1311
71.07
(3g) (e) 1. No amount described under par. (a) 2. may be used in the
12calculation of a credit under this subsection if that amount is used in the calculation
13of any other credit under this chapter.
SB248,3,1714
2. The investments that relate to the amount described under par. (a) 2. for
15which a claimant makes a claim under this subsection must be retained for use in
16the technology zone for the period during which the claimant's business is certified
17under s. 560.96 (3).
SB248, s. 6
18Section
6. 71.07 (3g) (f) of the statutes is created to read:
SB248,3,2019
71.07
(3g) (f) No credit may be allowed under this subsection unless the
20claimant includes with the claimant's return:
SB248,3,2321
1. A copy of a verification from the department of commerce that the claimant's
22business is certified under s. 560.96 (3) and that the business and the department
23of commerce have entered into an agreement under s. 560.96 (3) (d).
SB248,4,3
12. A statement from the department of commerce verifying the purchase price
2of the investment described under par. (a) 2. and verifying that the investment
3fulfills the requirement under par. (e) 2.
SB248, s. 7
4Section
7. 71.28 (3g) (a) 2. of the statutes is renumbered 71.28 (3g) (a) 2. (intro.)
5and amended to read:
SB248,4,96
71.28
(3g) (a) 2. (intro.)
The amount of income and franchise taxes imposed
7under s. 71.23 that the business paid in the taxable year. Ten percent of the following
8amounts of capital investments that are made by the business in the technology zone
9in the year to which the claim relates:
SB248, s. 8
10Section
8. 71.28 (3g) (a) 2. a. of the statutes is created to read:
SB248,4,1211
71.28
(3g) (a) 2. a. The purchase price of depreciable, tangible personal
12property.
SB248, s. 9
13Section
9. 71.28 (3g) (a) 2. b. of the statutes is created to read:
SB248,4,1514
71.28
(3g) (a) 2. b. The amount expended to acquire, construct, rehabilitate,
15remodel, or repair real property in a technology zone.
SB248, s. 10
16Section
10. 71.28 (3g) (a) 3. of the statutes is amended to read:
SB248,4,2117
71.28
(3g) (a) 3.
The amount of sales and use taxes imposed under ss. 77.52,
1877.53, and 77.71 that the business paid in the taxable year Fifteen percent of the
19amount that is spent for the first 12 months of wages for each full-time job that is
20created in a technology zone after certification. "Full-time job" has the meaning
21given in s. 560.96 (1) (a).
SB248, s. 11
22Section
11. 71.28 (3g) (e) of the statutes is created to read:
SB248,4,2523
71.28
(3g) (e) 1. No amount described under par. (a) 2. may be used in the
24calculation of a credit under this subsection if that amount is used in the calculation
25of any other credit under this chapter.
SB248,5,4
12. The investments that relate to the amount described under par. (a) 2. for
2which a claimant makes a claim under this subsection must be retained for use in
3the technology zone for the period during which the claimant's business is certified
4under s. 560.96 (3).
SB248, s. 12
5Section
12. 71.28 (3g) (f) of the statutes is created to read:
SB248,5,76
71.28
(3g) (f) No credit may be allowed under this subsection unless the
7claimant includes with the claimant's return:
SB248,5,108
1. A copy of a verification from the department of commerce that the claimant's
9business is certified under s. 560.96 (3) and that the business and the department
10of commerce have entered into an agreement under s. 560.96 (3) (d).
SB248,5,1311
2. A statement from the department of commerce verifying the purchase price
12of the investment described under par. (a) 2. and verifying that the investment
13fulfills the requirement under par. (e) 2.
SB248, s. 13
14Section
13. 71.47 (3g) (a) 2. of the statutes is renumbered 71.47 (3g) (a) 2.
15(intro.) and amended to read:
SB248,5,1916
71.47
(3g) (a) 2. (intro.)
The amount of income and franchise taxes imposed
17under s. 71.43 that the business paid in the taxable year. Ten percent of the following
18amounts of capital investments that are made by the business in the technology zone
19in the year to which the claim relates:
SB248, s. 14
20Section
14. 71.47 (3g) (a) 2. a. of the statutes is created to read:
SB248,5,2221
71.47
(3g) (a) 2. a. The purchase price of depreciable, tangible personal
22property.
SB248, s. 15
23Section
15. 71.47 (3g) (a) 2. b. of the statutes is created to read:
SB248,5,2524
71.47
(3g) (a) 2. b. The amount expended to acquire, construct, rehabilitate,
25remodel, or repair real property in a technology zone.
SB248, s. 16
1Section
16. 71.47 (3g) (a) 3. of the statutes is amended to read:
SB248,6,62
71.47
(3g) (a) 3.
The amount of sales and use taxes imposed under ss. 77.52,
377.53, and 77.71 that the business paid in the taxable year Fifteen percent of the
4amount that is spent for the first 12 months of wages for each full-time job that is
5created in a technology zone after certification. "Full-time job" has the meaning
6given in s. 560.96 (1) (a).
SB248, s. 17
7Section
17. 71.47 (3g) (e) of the statutes is created to read:
SB248,6,108
71.47
(3g) (e) 1. No amount described under par. (a) 2. may be used in the
9calculation of a credit under this subsection if that amount is used in the calculation
10of any other credit under this chapter.
SB248,6,1411
2. The investments that relate to the amount described under par. (a) 2. for
12which a claimant makes a claim under this subsection must be retained for use in
13the technology zone for the period during which the claimant's business is certified
14under s. 560.96 (3).
SB248, s. 18
15Section
18. 71.47 (3g) (f) of the statutes is created to read:
SB248,6,1716
71.47
(3g) (f) No credit may be allowed under this subsection unless the
17claimant includes with the claimant's return:
SB248,6,2018
1. A copy of a verification from the department of commerce that the claimant's
19business is certified under s. 560.96 (3) and that the business and the department
20of commerce have entered into an agreement under s. 560.96 (3) (d).
SB248,6,2321
2. A statement from the department of commerce verifying the purchase price
22of the investment described under par. (a) 2. and verifying that the investment
23fulfills the requirement under par. (e) 2.
SB248, s. 19
24Section
19. 560.96 (1) of the statutes is renumbered 560.96 (1) (intro.) and
25amended to read:
SB248,7,3
1560.96
(1) (intro.) In this section
, "tax credit" means a credit under s. 71.07
2(2di), (2dm), (2dx), or (3g), 71.28 (1di), (1dm), (1dx), or (3g), or 71.47 (1di), (1dm),
3(1dx), or (3g).:
SB248, s. 20
4Section
20. 560.96 (1) (a) of the statutes is created to read: