(a) 1. Except as provided in subd. 2., "business" means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.
2. "Business" does not include a store or shop in which retail sales is the principal business.
(b) "Eligible employee" means a person employed in a full-time job by a person certified under sub. (2).
(c) "Full-time job" means 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 receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
(d) "Tax benefits" means the jobs tax credit under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).
(2) Certification. The department may certify a person to receive tax benefits under this section if all of the following apply:
(a) The person is operating or intends to operate a business in this state.
(b) The person applies under this section and enters into a contract with the department.
(3) Eligibility for tax benefits. A person certified under sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in the person's business and one of the following apply:
(a) In a tier I county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $20,000 but not more than $100,000 in wages from the person in the year for which the credit is claimed.
(b) In a tier II county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $30,000 but not more than $100,000 in wages from the person in the year for which the credit is claimed.
(c) In a tier I county or municipality or a tier II county or municipality, the person improves the job-related skills of any eligible employee, trains any eligible employee on the use of job-related new technologies, or provides job-related training to any eligible employee whose employment with the person represents the employee's first full-time job.
(4) Duration, limits, and expiration. (a) The certification of a person under sub. (2) may remain in effect for no more than 10 cumulative years.
(b) 1. The department may award to a person certified under sub. (2) tax benefits for each eligible employee in an amount equal to up to 10 percent of the wages paid by the person to that employee if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:
a. In a tier I county or municipality, at least $20,000 but not more than $100,000.
b. In a tier II county or municipality, at least $30,000 but not more than $100,000.
2. The department may award to a person certified under sub. (2) tax benefits in an amount to be determined by the department by rule for costs incurred by the person to undertake the training activities described in sub. (3) (c).
(c) The department may allocate up to $5,000,000 in tax benefits under this section in any calendar year.
(5) Duties of the department. (a) The department of commerce shall notify the department of revenue when the department of commerce certifies a person to receive tax benefits.
(b) The department of commerce shall notify the department of revenue within 30 days of revoking a certification made under sub. (2).
(c) The department may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under sub. (2) (b).
(d) The department shall determine the maximum amount of the tax credits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q) that a certified business may claim and shall notify the department of revenue of this amount.
(e) The department shall annually verify the information submitted to the department by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).
(f) The department shall promulgate rules for the implementation and operation of this section, including rules relating to the following:
1. The definitions of a tier I county or municipality and a tier II county or municipality. The department may consider all of the following information when establishing the definitions required under this subdivision:
a. Unemployment rate.
b. Percentage of families with incomes below the poverty line established under
42 USC 9902 (2).
c. Median family income.
d. Median per capita income.
e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.
2. A schedule of additional tax benefits for which a person who is certified under sub. (2) and who incurs costs related to job training under sub. (3) (c) may be eligible.
3. Conditions for the revocation of a certification under par. (b).
4. Conditions for the repayment of tax benefits under par. (c).
28,3070m
Section 3070m. 560.206 (5) of the statutes is created to read:
560.206 (5) (a) The department shall annually submit to the cochairpersons of the joint committee on finance a report that includes all of the following:
1. The number of entities receiving tax credits under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) in the preceding year.
2. The total amount of production expenditures, as defined in ss. 71.07 (5f) (a) 3., for which tax credits were claimed in the preceding year and the county and city or village in which the production expenditures were made.
3. The number of individuals employed on each of the productions in the preceding year.
(b) The department shall gather the information required to produce the report described in par. (a) using financial tracking forms and permits that are consistent with industry standards.
28,3073
Section
3073. 560.208 of the statutes is created to read:
560.208 Qualified new business ventures. (1) The department shall implement a program to certify qualified new business ventures for purposes of s. 71.05 (24). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. Subject to sub. (2), a business may be certified under this subsection, and may maintain such certification, only if the business is engaged in one of the following:
(a) Developing a new product or business process.
(b) Manufacturing, agriculture, or processing or assembling products and conducting research and development.
(2) The department may not certify a business under sub. (1) if the business is engaged in real estate development, insurance, banking, lending, lobbying, political consultation, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail sales, leisure, hospitality, transportation, or construction.
(3) (a) The department shall maintain a list of businesses certified under sub. (1) and shall permit public access to the lists through the department's Internet Web site.
(b) The department of commerce shall notify the department of revenue of every certification issued under sub. (1) and the date on which a certification under sub. (1) is revoked or expires.
28,3074m
Section 3074m. 560.255 of the statutes is created to read:
560.255 Grants to Wisconsin Angel Network. Annually, from the appropriation under s. 20.143 (1) (bk), the department shall make a grant to the Wisconsin Angel Network of $60,000. The department shall enter into an agreement with the Wisconsin Angel Network that specifies the uses for the grant proceeds and reporting and auditing requirements. The department shall promulgate rules necessary to administer this section.
28,3075
Section
3075. 560.277 of the statutes is created to read:
560.277 Wisconsin venture fund. (1) Definition. In this section, "eligible institution" means a research institution or nonprofit organization involved in economic development.
(2) Capital connections grants. From the appropriation under s. 20.143 (1) (bk), the department may award a grant to an eligible institution to fund a project that does any of the following:
(a) Expands access for Wisconsin business ventures and entrepreneurs to existing capital networks.
(b) Creates or runs a network to connect Wisconsin business ventures and entrepreneurs with available capital.
(c) Creates an activity, event, or strategy to connect Wisconsin business ventures and entrepreneurs with available capital.
(3) Venture seed grants. (a) From the appropriation under s. 20.143 (1) (bk), the department may award a grant to an eligible institution to match funds raised by the institution for funding a new business or determining proof of concept and feasibility of a new business idea, if the department determines the award of a grant will increase the amount of funding for new businesses or will leverage private investment and facilitate the creation of jobs in this state.
(b) The proceeds of a grant awarded under this subsection shall be used to provide funding as proposed by the institution in the institution's application.
(4) Rule making. The department shall promulgate rules for the administration of this section.
(5) The department shall establish by rule a Wisconsin venture fund advisory council, which shall make recommendations to the department regarding all of the following:
(a) A process by which the department, the department of financial institutions, and other qualified persons may review proposals.
(b) The maximum amount of a grant awarded under sub. (2) or (3).
(c) Requirements that applicants for grants under subs. (2) and (3) secure funding from sources other than the state to match a portion of the amount of a grant awarded under sub. (2) or (3).
(d) Monitoring of projects funded by grants under sub. (2) or (3), including monitoring of job creation.
28,3076
Section
3076. Subchapter II of chapter 560 [precedes 560.30] of the statutes is created to read:
CHAPTER 560
SUBCHAPTER iI
forward innovation fund
28,3077
Section
3077. 560.30 of the statutes is created to read:
560.30 Definitions. In this subchapter:
(1) "Board" means the economic policy board created under s. 15.155 (2).
(2) "Business" means a company located in this state, a company that has made a firm commitment to locate a facility in this state, or a group of companies at least 80 percent of which are located in this state.
(3) "Cluster" means a geographic, categorical, horizontal, or vertical concentration of interconnected, interdependent, or synergistic businesses, industries, research centers, or venues for the performance, creation, or display of the arts.
(4) "Community-based organization" means an organization that is involved in economic development and helps businesses that are likely to employ persons.
(5) "Economically distressed area" means an area designated by the department using the methodology established by rule under s. 560.301 (2).
(6) "Eligible activity" means any of the following:
(a) The start-up, expansion, or retention of minority businesses.
(b) The start-up, expansion, or retention of businesses in economically distressed areas.
(c) Innovative proposals to strengthen inner cities.
(d) Innovative proposals to strengthen communities in rural municipalities.
(e) Innovative programs to strengthen clusters.
(f) Innovative proposals to strengthen entrepreneurship.
(7) "Eligible recipient" means any of the following:
(a) A business or small business.
(b) The governing body of a municipality.
(c) A community-based organization.
(d) A cooperative or association incorporated under ch. 185 or organized under ch. 193.
(e) A local development corporation.
(f) A nonprofit organization whose primary purpose is to promote the economic development of or community development in a particular area or region in the state.
(8) "Governing body" means a county board, city council, village board, or town board.
(9) "Local development corporation" means any of the following:
(a) The elected governing body of a federally recognized American Indian tribe or band in this state or any business created by the elected governing body.
