AB40, s. 3423 22Section 3423. 560.735 of the statutes is renumbered 238.335, and 238.335 (1)
23(a) and (c), (2), (5) (a) and (b), (6) (a) 1. and 2. and (c), (6r) and (7), as renumbered, are
24amended to read:
AB40,1213,2
1238.335 (1) (a) The area contains less than 10% of the valuation of the property
2of the city, village, or town, as determined under s. 70.57, in which the area is located.
AB40,1213,53 (c) If the area is located within a village, town, or city other than a 1st class city,
4the population of the area is not less than 1,000 nor more than 10,000, as estimated
5under s. 16.96.
AB40,1213,8 6(2) If an area is located within the boundaries of 2 or more cities, villages, or
7towns, the property value of the cities, villages, or towns under sub. (1) (a) shall be
8combined for the purposes of sub. (1).
AB40,1213,11 9(5) (a) The area has a continuous border following natural or man-made
10boundaries such as streets, highways, rivers, municipal limits, or limits of a
11reservation.
AB40,1213,1212 (b) The area consists of contiguous blocks, census blocks, or similar units.
AB40,1213,15 13(6) (a) 1. Each of the areas has a continuous border following natural or
14man-made boundaries and consists of contiguous blocks, census blocks , or similar
15units.
AB40,1213,1616 2. Each area meets at least 3 of the criteria listed in s. 560.71 238.31 (1) (e) 4.
AB40,1213,1917 (c) If an application is submitted by the governing body of a county under s.
18560.72 238.32 (2) or (3), up to 4 separate areas may be nominated or designated as
19one development zone, if par. (a) 1. to 3. applies.
AB40,1213,24 20(6r) Subject to the population limit under sub. (6m), if an area that is
21nominated or designated as a development zone is comprised of one or more entire
22counties and a city, village, or town is partially located in the area and partially
23located outside of the area, the entire city, village, or town shall be part of the
24nominated or designated area.
AB40,1214,3
1(7) The department corporation may waive the requirements of this section in
2a particular case, if the department corporation determines that application of the
3requirement is impractical with respect to a particular development zone.
AB40, s. 3424 4Section 3424. 560.737 of the statutes is repealed.
AB40, s. 3425 5Section 3425. 560.74 of the statutes is renumbered 238.34, and 238.34 (1), (2),
6(3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:
AB40,1214,127 238.34 (1) Except as provided under sub. (6), at any time after a development
8zone is designated by the department corporation, a local governing body may submit
9an application to change the boundaries of the development zone. If the boundary
10change reduces the size of a development zone, the local governing body shall explain
11why the area excluded should no longer be in a development zone. The department
12corporation may require the local governing body to submit additional information.
AB40,1214,16 13(2) The department corporation may approve an application for a boundary
14change if the development zone, as affected by the boundary changes, meets the
15applicable requirements of s. 560.735 238.335 and 3 of the criteria under s. 560.71
16238.31 (1) (e) 4.
AB40,1214,18 17(3) (intro.) If the department corporation approves an application for a
18boundary change under sub. (2), it shall do all of the following:
AB40,1214,2019 (a) Redetermine the limit on the tax benefits for the development zone
20established under s. 560.745 238.345 (2) (a).
AB40,1214,23 21(4) The change in the boundaries or tax benefits limit of a development zone
22shall be effective on the day the department corporation notifies the local governing
23body under sub. (3) (b).
AB40,1215,3 24(5) No change in the boundaries of a development zone may affect the duration
25of an area as a development zone under s. 560.745 238.345 (1) (a). The department

1corporation may consider a change in the boundary of a development zone when
2evaluating an application for an extension of the designation of an area as a
3development zone under s. 560.745 238.345 (1) (b).
AB40,1215,6 4(6) The department corporation may not accept any applications under sub. (1)
5to change the boundaries of a development zone designated under s. 560.71 238.31
6on or after March 6, 2009.
AB40, s. 3426 7Section 3426. 560.745 of the statutes is renumbered 238.345, and 238.345 (1)
8(a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3), as renumbered, are amended
9to read:
AB40,1215,1210 238.345 (1) (a) The designation of an area as a development zone shall be
11effective for 240 months, beginning on the day the department notifies the local
12governing body under s. 560.725 238.325 (3) of the designation.
AB40,1215,1813 (b) The local governing body may apply to the department corporation for one
1460-month extension of the designation. The department corporation shall
15promulgate adopt rules establishing criteria for approving an extension of a
16designation of an area as a development zone under this subsection. No applications
17may be accepted by the department corporation under this paragraph on or after
18March 6, 2009.
AB40,1215,21 19(2) (a) When the department corporation designates a development zone under
20s. 560.71 238.31, it shall establish a limit for tax benefits for the development zone
21determined by allocating to the development zone a portion of $38,155,000.
AB40,1215,2522 (am) Notwithstanding par. (a), the department corporation may increase the
23established limit for tax benefits for a development zone. The department
24corporation may not increase the limit for tax benefits established for any
25development zone designated under s. 560.71 238.31 on or after March 6, 2009.
AB40,1216,2
1(b) Annually the department corporation shall estimate the amount of forgone
2state revenue because of tax benefits claimed by persons in each development zone.
AB40,1216,53 (c) 1. Ninety days after the day on which the department corporation
4determines that the forgone tax revenues under par. (b) will equal or exceed the limit
5for the development zone established under par. (a) or (am).
AB40,1216,76 2. The day that the department corporation withdraws its designation of an
7area as a development zone under sub. (3).
AB40,1216,98 (d) The department corporation shall immediately notify the local governing
9body of a change in the expiration date of the development zone under par. (c).
AB40,1216,11 10(3) The department corporation may withdraw the designation of an area as
11a development zone if any of the following apply applies:
AB40,1216,1512 (a) No person is certified as eligible to receive tax benefits under s. 560.765
13238.365 (3) during the 12-month period beginning on the day the area is designated
14as a development zone and the department corporation determines that the local
15governing body that nominated the zone is not in compliance with s. 560.763 238.363.
AB40,1216,1816 (b) No person is certified as eligible to receive tax benefits under s. 560.765
17238.365 (3) during the 24-month period beginning on the day the area is designated
18a development zone.
AB40, s. 3427 19Section 3427. 560.75 of the statutes is renumbered 238.35, and 238.35 (intro.),
20(6), (7), (8) and (10), as renumbered, are amended to read:
AB40,1216,22 21238.35 Additional duties of the department corporation. (intro.) The
22department corporation shall do all of the following:
AB40,1217,4 23(6) Notify University of Wisconsin Wisconsin-Madison and University of
24Wisconsin System
small business development centers, the Wisconsin housing and
25development centers, the central administration of the University of

1Wisconsin-Madison campus and
all University of Wisconsin System campuses and
2regional planning commissions about the development zone program and encourage
3those entities to provide advice to the department corporation or local governing
4bodies on ways to improve the development zone program.
AB40,1217,5 5(7) Prepare forms for the certification described under s. 560.765 238.365 (5).
AB40,1217,7 6(8) Annually verify information submitted to the department corporation
7under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.
AB40,1217,11 8(10) Enter into an agreement with the local governing body of a 1st class city
9where a development zone is designated under s. 560.71 238.31 (3) (c) 1. to provide
10efficient administration of the development zone program within the development
11zone.
AB40, s. 3428 12Section 3428. 560.763 of the statutes is renumbered 238.363, and 238.363 (1)
13(intro.) and (c) and (4), as renumbered, are amended to read:
AB40,1217,1614 238.363 (1) (intro.) If an area nominated by a local governing body is designated
15as a development zone under s. 560.71 238.31, the local governing body shall do all
16of the following:
AB40,1217,1817 (c) Assist the department corporation in the administration of the
18development zone program.
AB40,1217,22 19(4) The local governing body of a 1st class city where a development zone is
20designated under s. 560.71 238.31 (3) (c) 1. shall enter into an agreement with the
21department corporation to provide efficient administration of the development zone
22program within the development zone.
AB40, s. 3429 23Section 3429. 560.765 of the statutes is renumbered 238.365, and 238.365
24(intro.), (2), (3) (intro.), (b), (c), (e) and (j) and (5) (e), (g) and (h), as renumbered, are
25amended to read:
AB40,1218,2
1238.365 Certification for tax benefits. (intro.) The department corporation
2shall do all of the following:
AB40,1218,4 3(2) Determine whether a person applying for tax benefits engages or will
4engage in economic activity which that violates s. 560.78 238.38 (1).
AB40,1218,7 5(3) (intro.) Subject to s. 560.78 238.38, certify persons who are eligible to claim
6tax benefits while an area is designated as a development zone, according to the
7following criteria:
AB40,1218,98 (b) The person's commitment not to engage in economic activity that violates
9s. 560.78 238.38 (1).
AB40,1218,1210 (c) The number of full-time jobs that will be created, retained, or substantially
11upgraded as a result of the person's economic activity in relation to the amount of tax
12benefits estimated for the person under sub. (4).
AB40,1218,1513 (e) The amount the person proposes to invest in a business, or spend on the
14construction, rehabilitation, repair, or remodeling of a building, located within the
15development zone.
AB40,1218,1716 (j) Any other criteria established under rules promulgated adopted by the
17department corporation.
AB40,1218,19 18(5) (e) The estimated number of full-time jobs that will be created, retained,
19or significantly upgraded in the development zone because of the person's business.
AB40,1218,2120 (g) The limit under s. 560.768 238.368 on tax benefits the person may claim
21while an area is designated as a development zone.
AB40,1218,2322 (h) Other information required by the department corporation or the
23department of revenue.
AB40, s. 3430
1Section 3430. 560.768 of the statutes is renumbered 238.368, and 238.368 (1)
2(a) and (b), (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are
3amended to read:
AB40,1219,64 238.368 (1) (a) The department corporation shall establish a limit on the
5maximum amount of tax benefits a person certified under s. 560.765 238.365 (3) may
6claim while an area is designated as a development zone.
AB40,1219,87 (b) When establishing a limit on tax benefits under par. (a), the department
8corporation shall do all of the following:
AB40,1219,99 1. Consider all of the criteria described in s. 560.765 238.365 (3) (a) to (e).
AB40,1219,1510 2. Establish a limit which does not greatly exceed a recommended limit,
11established under rules promulgated adopted by the department corporation based
12on the cost, number and types of full-time jobs that will be created, retained, or
13upgraded, including full-time jobs available to members of the targeted population,
14as a result of the economic activity of the person certified under s. 560.765 238.365
15(3).
AB40,1219,18 16(2) (intro.) The department corporation may, upon request, increase a limit on
17tax benefits established under sub. (1) if the department corporation does all of the
18following:
AB40,1219,2119 (b) Revises the certification required under s. 560.765 238.365 (5) and provides
20a copy of the revised form to the department of revenue and the person whose limit
21is increased under this subsection.
AB40,1219,24 22(3) (a) (intro.) The department corporation may reduce a limit established
23under sub. (1) or (2) if the department corporation determines that any of the
24following applies:
AB40,1220,2
11. The limit is not consistent with the criteria listed under s. 560.765 238.365
2(3) (a) to (e).
AB40,1220,53 (b) The department corporation shall notify the department of revenue and the
4person whose limit on tax benefits is reduced under par. (a) and provide a written
5explanation to the person of the reasons for reducing the limit.
AB40, s. 3431 6Section 3431. 560.77 of the statutes is renumbered 238.37, and 238.37 (1)
7(intro.) and (b) and (2), as renumbered, are amended to read:
AB40,1220,98 238.37 (1) (intro.) The department corporation shall revoke the certification of
9a person certified under s. 560.765 238.365 (3) if the person does any of the following:
AB40,1220,1010 (b) Becomes subject to revocation under s. 560.78 238.38 (1).
AB40,1220,12 11(2) The department corporation shall notify the department of revenue within
1230 days of revoking a certification under sub. (1).
AB40, s. 3432 13Section 3432. 560.78 of the statutes is renumbered 238.38, and 238.38 (1)
14(intro.), (1m), (2) (intro.) and (a) and (3) (a) and (b), as renumbered, are amended to
15read:
AB40,1220,2016 238.38 (1) (intro.) Except as provided in subs. (2) and (3), no person may be
17certified under s. 560.765 238.365 (3), or a person's certification may be revoked
18under s. 560.77 238.37, if the proposed new business, expansion of an existing
19business, or other proposed economic activity in a development zone would do or does
20any of the following:
AB40,1220,22 21(1m) No person may be certified under s. 560.765 238.365 (3) on or after March
226, 2009.
AB40,1220,25 23(2) (intro.) Subsection (1) does not apply if, after a hearing, the department
24corporation, or the local governing body under sub. (3) (a), determines that any of the
25following applies:
AB40,1221,3
1(a) The total number of full-time jobs provided by the person in this state would
2be reduced if the person were not certified under s. 560.765 238.365 (3) or if the
3person's certification were revoked.
AB40,1221,10 4(3) (a) Except as provided in pars. (b) and (c), if the economic activity for which
5a person is seeking certification under s. 560.765 238.365 (3) is the relocation of a
6business into a development zone from a location that is outside the development
7zone but within the limits of a city, village, town, or federally recognized American
8Indian reservation in which that development zone is located, the local governing
9body that nominated that area as a development zone under s. 560.72 238.32 shall
10determine whether sub. (2) (a) or (b) applies.
AB40,1221,1611 (b) Only the department corporation may determine whether sub. (2) (a) or (b)
12applies to a business relocation described in par. (a) if the business relocation would
13likely result in the loss of full-time jobs at or transfer of employees from a business
14location that is in this state but outside the limits of any city, village, town, or
15federally recognized American Indian reservation in which the development zone is
16located.
AB40, s. 3433 17Section 3433. 560.785 of the statutes is renumbered 238.385, and 238.385 (1)
18(intro.), (b), (bm) and (c) (intro.) and (2) (intro.), (b) and (c), as renumbered, are
19amended to read:
AB40,1221,2520 238.385 (1) (intro.) For the development zone program under ss. 560.70 and
21560.71 to 560.78
238.30 and 238.31 to 238.38, the development opportunity zone
22program under s. 560.795 238.395, and the enterprise development zone program
23under s. 560.797 238.397, the department corporation shall promulgate adopt rules
24that further define a person's eligibility for tax benefits. The rules shall do at least
25all of the following:
AB40,1222,4
1(b) Allow a person to claim up to $8,000 in tax benefits during the time that an
2area is designated as a development zone, as a development opportunity zone, or as
3an enterprise development zone for creating a full-time job that is filled by a member
4of the target population.
AB40,1222,85 (bm) Allow a person to claim up to $8,000 in tax benefits during the time that
6an area is designated as an enterprise development zone for retaining a full-time job
7if the department corporation determines that the person made a significant capital
8investment to retain the full-time job.
AB40,1222,119 (c) (intro.) Allow a person to claim up to $6,000 in tax benefits during the time
10that an area is designated as a development zone, as a development opportunity
11zone, or as an enterprise development zone for any of the following:
AB40,1222,14 12(2) (intro.) The department corporation may by rule specify circumstances
13under which the department corporation may grant exceptions to any of the
14following:
AB40,1222,1615 (b) The requirement under ss. 560.70 238.30 (2m) and 560.797 238.397 (1) (am)
16that an individual's pay must equal at least 150% of the federal minimum wage.
AB40,1222,2017 (c) The requirement under ss. 560.70 238.30 (2m) and 560.797 238.397 (1) (am)
18that an individual's position must be regular, nonseasonal, and full-time and that
19the individual must be required to work at least 2,080 hours per year, including paid
20leave and holidays.
AB40, s. 3434 21Section 3434. 560.795 of the statutes is renumbered 238.395, and 238.395 (1)
22(a), (b), (c), (d), (e), (f), (g) and (h), (2) (c), (d) and (e), (3) (a), (b) 1., 2., 3., 4., 5., 6., 7.,
238. and 9., (c) and (d), (4) (a) (intro.) and (b) and (5) (a) (intro.), 2. and 3., (b), (c), (d),
24(e) (intro.) and 3. and (f), as renumbered, are amended to read:
AB40,1223,3
1238.395 (1) (a) An area in the city of Beloit, the legal description of which is
2provided to the department corporation by the local governing body of the city of
3Beloit.
AB40,1223,54 (b) An area in the city of West Allis, the legal description of which is provided
5to the department corporation by the local governing body of the city of West Allis.
AB40,1223,76 (c) An area in the city of Eau Claire, the legal description of which is provided
7to the department corporation by the local governing body of the city of Eau Claire.
AB40,1223,98 (d) An area in the city of Kenosha, the legal description of which is provided to
9the department corporation by the local governing body of the city of Kenosha.
AB40,1223,1110 (e) An area in the city of Milwaukee, the legal description of which is provided
11to the department corporation by the local governing body of the city of Milwaukee.
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