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.
5. That the airport development project will likely positively affect the area.
In addition, the bill requires the department to consider all of the following in
making a decision concerning a designation as an airport development zone:
1. The extent of poverty, unemployment, or other factors contributing to
general economic hardship in the area.
2. The prospects for new investment and economic development in the area.
3. The amount of investment that is likely to result from the airport
development project.
4. The number of full-time jobs that are likely to be created as a result of the
airport development project.
5. The number of full-time jobs that are likely to be available to the target
population as a result of the project.
6. The competitive effect of designating the area as an airport development
zone on other businesses in the area.
7. The needs of other areas of the state.
8. Any other factors that the department considers relevant.
Under the bill, 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, development
opportunity zone, or enterprise development zone under current law.
The bill requires the department to specify the length of time, not to exceed 84
months, that a designation is effective and requires the department to establish a
limit, not to exceed $3,000,000, for tax credits applicable to each airport development
zone. In addition, the department must annually estimate the amount of forgone
state revenue because of tax credits claimed by persons in each airport development
zone. The designation of an area as an airport development zone expires before the
date initially set by the department, if the department determines that the forgone
tax revenues will equal or exceed the limit on tax credits established for the airport
development zone.
Certification for tax credits
The bill allows a person that intends to operate a place of business in an airport
development zone to apply to the department for tax credits. The application must
specify all of the following:
1. The name and address of the person's business for which tax credits will be
claimed.
2. The appropriate Wisconsin tax identification number of the person.
3. The names and addresses of other locations outside of the airport
development zone where the person conducts business and a description of the
business activities conducted at those locations.
4. The amount that the person proposes to invest in the place of business or to
spend on the construction, rehabilitation, repair, or remodeling of a building in the
airport development zone.
5. The estimated total investment of the person in the airport development
zone.
6. The estimated number of full-time jobs that will be created, retained, or
substantially upgraded as a result of the person's place of business in the airport
development zone in relation to the amount of tax credits estimated for the person.
7. The person's plans to make reasonable attempts to hire employees from a
specified target population.
8. The estimated number of full-time jobs that will be filled by members of the
target population.
9. Any other information required by the department or the Department of
Revenue.
The bill requires the department to revoke a person's certification if the
designation of the applicable airport development zone expires. In addition, a
person's certification must be revoked if the person supplied false or misleading
information to obtain the tax credits; leaves the airport development zone to conduct
substantially the same business outside of the airport development zone; or ceases
operations in the airport development zone and does not renew operation of the
business or a similar business in the airport development zone within 12 months.
Tax credits
A person who is certified to claim tax credits based on the person's business
activities in an airport development zone may claim the development zone's capital
investment credit under current law. The amount of that credit is equal to 3 percent
of the purchase price of depreciable, tangible personal property or 3 percent of the
amount expended to acquire, construct, rehabilitate, remodel, or repair real property
that is located in the development zone. In addition, the person may claim a
development zone's credit under current law based on the number of full-time jobs
created in the airport development zone.
Airport development zone loan program
The bill establishes a loan program to be known as the "Airport Development
Zone Loan Program." Under the program, the Wisconsin Housing and Economic
Development Authority (WHEDA) is authorized to award loans to a business for the
purpose of financing the construction or expansion of an airport in an airport
development zone, including financing activities to encourage airlines to serve the
airport or to increase the number of flights to and from the airport. Under the bill,
a loan's interest rate must be determined with reference to the amount required to
repay the principal and interest of the bonds described below, plus the cost of issuing
the bonds.
The bill provides that the program is to be funded from the proceeds of bonds
issued by WHEDA in an aggregate principal amount of up to $200,000,000. The debt
service on the bonds, as well as all costs associated with the issuance of the bonds,
is to be paid by the businesses granted the loans under the program.
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:
SB444, s. 1
1Section
1. 71.07 (2dm) (a) 1. of the statutes is amended to read:
SB444,4,32
71.07
(2dm) (a) 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim
3tax benefits or certified under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4).
SB444, s. 2
4Section
2. 71.07 (2dm) (a) 3. of the statutes is amended to read:
SB444,4,75
71.07
(2dm) (a) 3. "Development zone" means a development opportunity zone
6under s. 560.795 (1) (e) and (f) or 560.798
, or an airport development zone under s.
7560.799.
SB444, s. 3
8Section
3. 71.07 (2dm) (f) 1. of the statutes is amended to read:
SB444,4,119
71.07
(2dm) (f) 1. A copy of a verification from the department of commerce that
10the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under
11s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4).
SB444, s. 4
12Section
4. 71.07 (2dm) (j) of the statutes is amended to read:
SB444,5,613
71.07
(2dm) (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim
14tax benefits becomes ineligible for such tax benefits, or if a person's certification
15under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4) is revoked, that person may claim
16no credits under this subsection for the taxable year that includes the day on which
1the person becomes ineligible for tax benefits, the taxable year that includes the day
2on which the certification is revoked, or succeeding taxable years, and that person
3may carry over no unused credits from previous years to offset tax under this chapter
4for the taxable year that includes the day on which the person becomes ineligible for
5tax benefits, the taxable year that includes the day on which the certification is
6revoked, or succeeding taxable years.
SB444, s. 5
7Section
5. 71.07 (2dm) (k) of the statutes is amended to read:
SB444,5,138
71.07
(2dm) (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim
9tax benefits or certified under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4) ceases
10business operations in the development zone during any of the taxable years that
11that zone exists, that person may not carry over to any taxable year following the
12year during which operations cease any unused credits from the taxable year during
13which operations cease or from previous taxable years.
SB444, s. 6
14Section
6. 71.07 (2dx) (a) 2. of the statutes is amended to read:
SB444,5,1815
71.07
(2dx) (a) 2. "Development zone" means a development zone under s.
16560.70, a development opportunity zone under s. 560.795, an enterprise
17development zone under s. 560.797,
or an agricultural development zone under s.
18560.798
, or an airport development zone under s. 560.799.
SB444, s. 7
19Section
7. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:
SB444,5,2520
71.07
(2dx) (b)
Credit. (intro.) Except as provided in pars. (be) and (bg) and
21in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
22is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
23560.797 (4)
or, 560.798 (3)
, or 560.799 (4), any person may claim as a credit against
24taxes imposed on the person's income from the person's business activities in a
25development zone the following amounts:
SB444, s. 8
1Section
8. 71.07 (2dx) (c) of the statutes is amended to read:
SB444,6,112
71.07
(2dx) (c)
Credit precluded. If the certification of a person for tax benefits
3under s. 560.765 (3), 560.797 (4)
or, 560.798 (3)
, or 560.799 (4) is revoked, or if the
4person becomes ineligible for tax benefits under s. 560.795 (3), that person may not
5claim credits under this subsection for the taxable year that includes the day on
6which the certification is revoked; the taxable year that includes the day on which
7the person becomes ineligible for tax benefits; or succeeding taxable years and that
8person may not carry over unused credits from previous years to offset tax under this
9chapter for the taxable year that includes the day on which certification is revoked;
10the taxable year that includes the day on which the person becomes ineligible for tax
11benefits; or succeeding taxable years.
SB444, s. 9
12Section
9. 71.07 (2dx) (d) of the statutes is amended to read:
SB444,6,1913
71.07
(2dx) (d)
Carry-over precluded. If a person who is entitled under s.
14560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4)
or, 15560.798 (3)
, or 560.799 (4) for tax benefits ceases business operations in the
16development zone during any of the taxable years that that zone exists, that person
17may not carry over to any taxable year following the year during which operations
18cease any unused credits from the taxable year during which operations cease or
19from previous taxable years.
SB444, s. 10
20Section
10. 71.28 (1dm) (a) 1. of the statutes is amended to read:
SB444,6,2221
71.28
(1dm) (a) 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim
22tax benefits or certified under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4).
SB444, s. 11
23Section
11. 71.28 (1dm) (a) 3. of the statutes is amended to read:
SB444,7,3
171.28
(1dm) (a) 3. "Development zone" means a development opportunity zone
2under s. 560.795 (1) (e) and (f) or 560.798
, or an airport development zone under s.
3560.799.
SB444, s. 12
4Section
12. 71.28 (1dm) (f) 1. of the statutes is amended to read:
SB444,7,75
71.28
(1dm) (f) 1. A copy of a verification from the department of commerce that
6the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under
7s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4).
SB444, s. 13
8Section
13. 71.28 (1dm) (j) of the statutes is amended to read:
SB444,7,189
71.28
(1dm) (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim
10tax benefits becomes ineligible for such tax benefits, or if a person's certification
11under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4) is revoked, that person may claim
12no credits under this subsection for the taxable year that includes the day on which
13the person becomes ineligible for tax benefits, the taxable year that includes the day
14on which the certification is revoked, or succeeding taxable years, and that person
15may carry over no unused credits from previous years to offset tax under this chapter
16for the taxable year that includes the day on which the person becomes ineligible for
17tax benefits, the taxable year that includes the day on which the certification is
18revoked, or succeeding taxable years.
SB444, s. 14
19Section
14. 71.28 (1dm) (k) of the statutes is amended to read:
SB444,7,2520
71.28
(1dm) (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim
21tax benefits or certified under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4) ceases
22business operations in the development zone during any of the taxable years that
23that zone exists, that person may not carry over to any taxable year following the
24year during which operations cease any unused credits from the taxable year during
25which operations cease or from previous taxable years.
SB444, s. 15
1Section
15. 71.28 (1dx) (a) 2. of the statutes is amended to read:
SB444,8,52
71.28
(1dx) (a) 2. "Development zone" means a development zone under s.
3560.70, a development opportunity zone under s. 560.795, an enterprise
4development zone under s. 560.797,
or an agricultural development zone under s.
5560.798
, or an airport development zone under s. 560.799.
SB444, s. 16
6Section
16. 71.28 (1dx) (b) (intro.) of the statutes is amended to read:
SB444,8,127
71.28
(1dx) (b)
Credit. (intro.) Except as provided in pars. (be) and (bg) and
8in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
9is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
10560.797 (4)
or, 560.798 (3)
, or 560.799 (4), any person may claim as a credit against
11taxes imposed on the person's income from the person's business activities in a
12development zone under this subchapter the following amounts:
SB444, s. 17
13Section
17. 71.28 (1dx) (c) of the statutes is amended to read:
SB444,8,2314
71.28
(1dx) (c)
Credit precluded. If the certification of a person for tax benefits
15under s. 560.765 (3), 560.797 (4)
or, 560.798 (3)
, or 560.799 (4) is revoked, or if the
16person becomes ineligible for tax benefits under s. 560.795 (3), that person may not
17claim credits under this subsection for the taxable year that includes the day on
18which the certification is revoked; the taxable year that includes the day on which
19the person becomes ineligible for tax benefits; or succeeding taxable years and that
20person may not carry over unused credits from previous years to offset tax under this
21chapter for the taxable year that includes the day on which certification is revoked;
22the taxable year that includes the day on which the person becomes ineligible for tax
23benefits; or succeeding taxable years.
SB444, s. 18
24Section
18. 71.28 (1dx) (d) of the statutes is amended to read:
SB444,9,7
171.28
(1dx) (d)
Carry-over precluded. If a person who is entitled under s.
2560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4)
or, 3560.798 (3)
, or 560.799 (4) for tax benefits ceases business operations in the
4development zone during any of the taxable years that that zone exists, that person
5may not carry over to any taxable year following the year during which operations
6cease any unused credits from the taxable year during which operations cease or
7from previous taxable years.
SB444, s. 19
8Section
19. 71.47 (1dm) (a) 1. of the statutes is amended to read:
SB444,9,109
71.47
(1dm) (a) 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim
10tax benefits or certified under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4).
SB444, s. 20
11Section
20. 71.47 (1dm) (a) 3. of the statutes is amended to read:
SB444,9,1412
71.47
(1dm) (a) 3. "Development zone" means a development opportunity zone
13under s. 560.795 (1) (e) and (f) or 560.798
, or an airport development zone under s.
14560.799.
SB444, s. 21
15Section
21. 71.47 (1dm) (f) 1. of the statutes is amended to read:
SB444,9,1816
71.47
(1dm) (f) 1. A copy of a verification from the department of commerce that
17the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under
18s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4).
SB444, s. 22
19Section
22. 71.47 (1dm) (j) of the statutes is amended to read:
SB444,9,2520
71.47
(1dm) (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim
21tax benefits becomes ineligible for such tax benefits, or if a person's certification
22under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4) is revoked, that person may claim
23no credits under this subsection for the taxable year that includes the day on which
24the person becomes ineligible for tax benefits, the taxable year that includes the day
25on which the certification is revoked, or succeeding taxable years, and that person
1may carry over no unused credits from previous years to offset tax under this chapter
2for the taxable year that includes the day on which the person becomes ineligible for
3tax benefits, the taxable year that includes the day on which the certification is
4revoked, or succeeding taxable years.
SB444, s. 23
5Section
23. 71.47 (1dm) (k) of the statutes is amended to read:
SB444,10,116
71.47
(1dm) (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim
7tax benefits or certified under s. 560.795 (5)
or, 560.798 (3)
, or 560.799 (4) ceases
8business operations in the development zone during any of the taxable years that
9that zone exists, that person may not carry over to any taxable year following the
10year during which operations cease any unused credits from the taxable year during
11which operations cease or from previous taxable years.
SB444, s. 24
12Section
24. 71.47 (1dx) (a) 2. of the statutes is amended to read:
SB444,10,1613
71.47
(1dx) (a) 2. "Development zone" means a development zone under s.
14560.70, a development opportunity zone under s. 560.795 or an enterprise
15development zone under s. 560.797,
or an agricultural development zone under s.
16560.798
, or an airport development zone under s. 560.799.
SB444, s. 25
17Section
25. 71.47 (1dx) (b) (intro.) of the statutes is amended to read:
SB444,10,2318
71.47
(1dx) (b)
Credit. (intro.) Except or provided in pars. (be) and (bg) and
19in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
20is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
21560.797 (4)
or, 560.798 (3)
, or 560.799 (4), any person may claim as a credit against
22taxes imposed on the person's income from the person's business activities in a
23development zone under this subchapter the following amounts:
SB444, s. 26
24Section
26. 71.47 (1dx) (c) of the statutes is amended to read:
SB444,11,10
171.47
(1dx) (c)
Credit precluded. If the certification of a person for tax benefits
2under s. 560.765 (3), 560.797 (4)
or, 560.798 (3)
, or 560.799 (4) is revoked, or if the
3person becomes ineligible for tax benefits under s. 560.795 (3), that person may not
4claim credits under this subsection for the taxable year that includes the day on
5which the certification is revoked; the taxable year that includes the day on which
6the person becomes ineligible for tax benefits; or succeeding taxable years and that
7person may not carry over unused credits from previous years to offset tax under this
8chapter for the taxable year that includes the day on which certification is revoked;
9the taxable year that includes the day on which the person becomes ineligible for tax
10benefits; or succeeding taxable years.
SB444, s. 27
11Section
27. 71.47 (1dx) (d) of the statutes is amended to read:
SB444,11,1812
71.47
(1dx) (d)
Carry-over precluded. If a person who is entitled under s.
13560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4)
or, 14560.798 (3)
, or 560.799 (4) for tax benefits ceases business operations in the
15development zone during any of the taxable years that that zone exists, that person
16may not carry over to any taxable year following the year during which operations
17cease any unused credits from the taxable year during which operations cease or
18from previous taxable years.
SB444, s. 28
19Section
28. 234.03 (2m) of the statutes is amended to read:
SB444,11,2120
234.03
(2m) To issue notes and bonds in accordance with ss. 234.08, 234.40,
21234.50, 234.60, 234.61, 234.626,
234.63, 234.65
, and 234.66.