AB40: Bill Text

AB40,1230,9 (c) The department corporation may not accept or approve any applications or project plans submitted under par. (a) on or after March 6, 2009.

AB40,1230,14 (4) (a) Except as provided in par. (h), if the department corporation approves a project plan under sub. (3) and designates the area in which the person submitting the project plan conducts or intends to conduct the project as an enterprise development zone under the criteria under sub. (2), the department corporation shall certify the person as eligible for tax benefits.

AB40,1230,18 (c) When the department corporation designates an area as an enterprise development zone for a project, the department corporation shall notify the governing body of any city, village, town, or federally recognized American Indian tribe or band in which the area is located of the area's designation.

AB40,1230,22 (d) The department corporation shall notify the department of revenue of all persons entitled to claim tax benefits under this section, except that the department corporation shall notify the office of the commissioner of insurance of all persons entitled to claim the credit under s. 76.636.

AB40,1230,25 (f) The tax benefits for which a person is certified as eligible under this subsection are not transferable to another person, business, or location, except to the extent permitted under section 383 of the internal revenue code.

AB40,1231,3 (g) The department corporation annually shall verify information submitted to the department corporation under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

AB40,1231,7 (5) (a) When the department corporation designates an area as an enterprise development zone under this section, the department corporation shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d) and sub. (6).

AB40,1231,10 (b) When the department corporation designates an area as an enterprise development zone under this section, the department corporation shall establish a limit, not to exceed $3,000,000, for tax benefits for the enterprise development zone.

AB40,1231,13 (c) Annually, the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each enterprise development zone.

AB40,1231,18 (d) 1. Notwithstanding the length of time specified by the department corporation under par. (a), the designation of an area as an enterprise development zone shall expire 90 days after the day on which the department corporation determines that the forgone tax revenues under par. (c) will equal or exceed the limit established for the enterprise development zone.

AB40,1231,23 2. The department corporation shall immediately notify the department of revenue and the governing body of any city, village, town, or federally recognized American Indian tribe or band in which the enterprise development zone is located of a change in the expiration date of the enterprise development zone under this paragraph.

AB40,1232,3 (6) (a) (intro.) The department corporation shall revoke the entitlement of a person to claim tax benefits under this section, and the designation of the area as an enterprise development zone shall expire, if the person does any of the following:

AB40,1232,5 (b) The department corporation shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

AB40, s. 3436 Section 3436. 560.798 of the statutes is renumbered 238.398, and 238.398 (2) (a) and (b), (3) (a) and (b), (4) (a) (intro.) and (b) and (5) (intro.) and (e), as renumbered, are amended to read:

AB40,1232,13 238.398 (2) (a) Except as provided under par. (c), the department corporation may designate one area in the state as an agricultural development zone. The area must be located in a rural municipality. An agricultural business that is located in an agricultural development zone and that is certified by the department corporation under sub. (3) is eligible for tax benefits as provided in sub. (3).

AB40,1232,24 (b) The designation of an area as an agricultural development zone shall be in effect for 10 years from the time that the department corporation first designates the area. Not more than $5,000,000 in tax benefits may be claimed in an agricultural development zone, except that the department corporation may allocate the amount of unallocated airport development zone tax credits, as provided under s. 560.7995 238.3995 (3) (b), to agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The department corporation may change the boundaries of an agricultural development zone during the time that its designation is in effect. A change in the boundaries of an agricultural development zone does not affect the duration of the designation of the area or the maximum tax benefit amount that may be claimed in the agricultural development zone.

AB40,1233,6 (3) (a) Except as provided under par. (c), the department corporation may certify for tax benefits in an agricultural development zone a new or expanding agricultural business that is located in the agricultural development zone. In determining whether to certify a business under this subsection, the department corporation shall consider, among other things, the number of jobs that will be created or retained by the business.

AB40,1233,12 (b) When the department corporation certifies an agricultural business under this subsection, the department corporation shall establish a limit on the amount of tax benefits that the business may claim. The department corporation shall enter into an agreement with the business that specifies the limit on the amount of tax benefits that the business may claim and reporting requirements with which the business must comply.

AB40,1233,14 (4) (a) (intro.) The department of commerce corporation shall notify the department of revenue of all the following:

AB40,1233,17 (b) The department corporation shall annually verify information submitted to the department corporation under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.

AB40,1233,19 (5) (intro.) The department corporation shall promulgate adopt rules for the operation of this section, including rules related to all the following:

AB40,1233,21 (e) The exchange of information between the department of commerce corporation and the department of revenue.

AB40, s. 3437 Section 3437. 560.799 of the statutes is renumbered 238.399, and 238.399 (1) (am) 2., (3) (a), (b) (intro.), (bm) and (c), (5) (intro.), (b), (c) 1. a. and b., 2. b. and c., (d) 1. and (e), (5m) and (6) (a), (b) (intro.), (c), (d), (e), (f) and (g) (intro.) and 1. (intro.), as renumbered, are amended to read:

AB40,1234,6 238.399 (1) (am) 2. The department corporation may by rule specify circumstances under which the department corporation may grant exceptions to the requirement under subd. 1. that a full-time employee means an individual who, as a condition of employment, is required to work at least 2,080 hours per year, but under no circumstances may a full-time employee mean an individual who, as a condition of employment, is required to work less than 37.5 hours per week.

AB40,1234,8 (3) Designation of enterprise zones; criteria. (a) The department corporation may designate not more than 12 enterprise zones.

AB40,1234,10 (b) (intro.) In determining whether to designate an area under par. (a), the department corporation shall consider all of the following:

AB40,1234,13 (bm) The department corporation shall specify whether an enterprise zone designated under par. (a) is located in a tier I county or municipality or a tier II county or municipality.

AB40,1234,15 (c) The department corporation shall, to the extent possible, give preference to the greatest economic need.

AB40,1234,17 (5) Certification. (intro.) The department corporation may certify for tax benefits any of the following:

AB40,1234,21 (b) A business that relocates to an enterprise zone from outside this state, if the business offers compensation and benefits to its employees working in the zone for the same type of work that are at least as favorable as those offered to its employees working outside the zone, as determined by the department corporation.

AB40,1234,24 (c) 1. a. The business enters into an agreement with the department corporation to claim tax benefits only for years during which the business maintains the increased level of personnel.

AB40,1235,4 b. The business offers compensation and benefits for the same type of work to its employees working in the enterprise zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department corporation.

AB40,1235,7 2. b. The business enters into an agreement with the department corporation to claim tax benefits only for years during which the business maintains the capital investment.

AB40,1235,11 c. The business offers compensation and benefits for the same type of work to its employees working in the zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department corporation.

AB40,1235,13 (d) 1. The business is an original equipment manufacturer with a significant supply chain in the state, as determined by the department corporation by rule.

AB40,1235,16 (e) A business located in an enterprise zone if the business purchases tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined by the department corporation.

AB40,1235,25 (5m) Additional tax benefits for significant capital expenditures. If the department corporation determines that a business certified under sub. (5) makes a significant capital expenditure in the enterprise zone, the department corporation may certify the business to receive additional tax benefits in an amount to be determined by the department corporation, but not exceeding 10 percent of the business' capital expenditures. The department corporation shall, in a manner determined by the department corporation, allocate the tax benefits a business is certified to receive under this subsection over the remainder of the time limit of the enterprise zone under sub. (4).

AB40,1236,3 (6) (a) The department of commerce corporation shall notify the department of revenue when the department of commerce corporation certifies a business to receive tax benefits.

AB40,1236,5 (b) (intro.) The department corporation shall revoke a certification under sub. (5) if the business does any of the following:

AB40,1236,7 (c) The department of commerce corporation shall notify the department of revenue within 30 days of a revocation under par. (b).

AB40,1236,10 (d) The department corporation may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment or capital investment levels required by an agreement under sub. (5) (c).

AB40,1236,13 (e) The department corporation shall determine the maximum amount of the tax credits under ss. 71.07 (3w), 71.28 (3w), and 71.47 (3w) that a certified business may claim and shall notify the department of revenue of this amount.

AB40,1236,16 (f) The department corporation shall annually verify the information submitted to the department corporation under ss. 71.07 (3w), 71.28 (3w), or 71.47 (3w).

AB40,1236,18 (g) (intro.) The department corporation shall promulgate adopt rules specifying all of the following by rule:

AB40,1236,21 1. (intro.) The definitions of a tier I county or municipality and a tier II county or municipality. The department corporation may consider all of the following information when establishing the definitions required under this subdivision:

AB40, s. 3438 Section 3438. 560.7995 of the statutes is renumbered 238.3995, and 238.3995 (1) (b) and (c), (2) (a) (intro.) and 4., (b) (intro.) and 8., (c) 1. and 2. and (d), (3) (a), (b), (c) and (d) 1. and 2., (4) (a) (intro.) and 10., (am), (ar), (b) 1., (c) (intro.) and (d) and (5), as renumbered, are amended to read:

AB40,1237,1 238.3995 (1) (b) "Full-time job" has the meaning given in s. 560.70 238.30 (2m).

AB40,1237,2 (c) "Target population" has the meaning given in s. 560.70 238.30 (6).

AB40,1237,5 (2) (a) (intro.) Subject to pars. (c) and (e), the department corporation may designate an area as an airport development zone if the department corporation determines all of the following:

AB40,1237,8 4. That the airport development project is not likely to occur or continue without the department's corporation designation of the area as an airport development zone.

AB40,1237,10 (b) (intro.) In making a determination under par. (a), the department corporation shall consider all of the following:

AB40,1237,11 8. Any other factors that the department corporation considers relevant.

AB40,1237,16 (c) 1. The department corporation 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 under s. 560.71 238.31, as a development opportunity zone under s. 560.795 238.395, or as an enterprise development zone under s. 560.797 238.397.

AB40,1237,23 2. The department corporation shall give the department of transportation the opportunity to review and comment on any proposed designation under this subsection and the department of transportation may deny any such designation if the department of transportation determines that the designation would compromise the airport's safety or utility. The department of transportation may also review and comment on any land use or compatibility issues related to any proposed designation under this subsection.

AB40,1238,3 (d) Notwithstanding pars. (a) to (c), and except as provided in par. (e), the department corporation shall designate as an airport development zone the area within the boundaries of Adams, Fond du Lac, Green Lake, Juneau, Langlade, Lincoln, Marathon, Marquette, Menominee, Oneida, Portage, Price, Shawano, Taylor, Waupaca, Waushara, Winnebago, Wood, and Vilas counties.

AB40,1238,12 (3) (a) When the department corporation designates an area as an airport development zone, the department corporation shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d). The department corporation shall notify each person certified for tax benefits in an airport development zone, the department of revenue, the department of transportation, the Wisconsin Housing and Economic Development Authority, and the governing body of each county, city, village, town, and federally recognized American Indian tribe or band in which territory of the airport development zone is located of the designation of and expiration date of the airport development zone.

AB40,1239,2 (b) When the department corporation designates an area as an airport development zone, the department corporation shall establish a limit, not to exceed $3,000,000, for tax benefits applicable to the airport development zone, except that the department corporation shall limit the amount of tax benefits applicable to the airport development zone designated under sub. (2) (d) to $750,000. The total tax benefits applicable to all airport development zones may not exceed $9,000,000, less any amount allocated to technology zones under s. 560.96 238.23 (2) (b) and to agricultural development zones under s. 560.798 238.398 (2) (b), and except that the total amount allocated to all technology zones under s. 560.96 238.23 (2) (b) and to all agricultural development zones under s. 560.798 238.398 (2) (b), may not exceed $6,000,000. The department corporation may not reallocate amounts as provided under this paragraph on or after January 1, 2010, except that the department corporation may, after 48 months from the month of any designation under this section, evaluate the area designated as an airport development zone and reallocate the amount of available tax benefits.

AB40,1239,5 (c) Annually, the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each airport development zone.

AB40,1239,10 (d) 1. Notwithstanding the length of time specified by the department corporation under par. (a), the designation of an area as an airport development zone shall expire 90 days after the day on which the department corporation determines that the forgone tax revenues estimated under par. (c) will equal or exceed the limit established for the airport development zone.

AB40,1239,17 2. The department corporation shall immediately notify each person certified for tax benefits in an airport development zone, the department of revenue, the department of transportation, the Wisconsin Housing and Economic Development Authority, and the governing body of each county, city, village, town, and federally recognized American Indian tribe or band in which territory of the airport development zone is located of a change in the expiration date of the airport development zone under this paragraph.

AB40,1239,20 (4) (a) (intro.) A person that intends to operate a place of business in an airport development zone may submit to the department corporation an application and a business plan. The business plan shall include all of the following:

AB40,1239,22 10. Any other information required by the department corporation or the department of revenue.

AB40,1240,9 (am) A person that intends to operate a business in the airport development zone designated under sub. (2) (d) may submit to the department corporation an application and a business plan that includes all of the information required under par. (a). In approving business plans submitted under this paragraph, the department corporation shall give higher priority to airport development projects located or proposed to be located in a distressed area, as defined in s. 560.605 (7) (b) areas that have high levels of unemployment, areas that have a low median household income, areas where significant number of workers have been permanently laid off, areas in which an employer has given public notice of a plant closing or a substantial reduction in force that will result in a significant number of workers in the area being permanently laid off, and areas affected by other factors that indicate they are distressed areas, as determined by the corporation.

AB40,1240,11 (ar) The department corporation may not accept or approve any applications or business plans submitted under par. (a) on or after March 6, 2009.

AB40,1240,15 (b) 1. Except as provided in subd. 2., if the department corporation approves a business plan under par. (a) or (am), the department corporation shall certify the person as eligible for tax benefits. The department corporation shall notify the department of revenue within 30 days of certifying a person under this paragraph.

AB40,1240,18 (c) (intro.) The department corporation shall revoke a person's certification under par. (b) when the designation of the applicable airport development zone expires or if the person does any of the following:

AB40,1240,20 (d) The department corporation shall notify the department of revenue within 30 days after revoking a certification under par. (c).

AB40,1240,24 (5) Verification of information. The department corporation annually shall verify information submitted to the department corporation under ss. 71.07 (2dm) and (2dx), 71.28 (1dm) and (1dx), and 71.47 (1dm) and (1dx) as it relates to airport development zones.

AB40, s. 3439 Section 3439. Subchapter VIII (title) of chapter 560 [precedes 560.86] of the statutes is repealed.

AB40, s. 3440 Section 3440. 560.86 of the statutes is repealed.

AB40, s. 3441 Section 3441. 560.87 of the statutes is repealed.

AB40, s. 3442 Section 3442. 560.875 of the statutes is repealed.

AB40, s. 3443 Section 3443. Subchapter IX (title) of chapter 560 [precedes 560.90] of the statutes is repealed.

AB40, s. 3444 Section 3444. 560.90 of the statutes is repealed.

AB40, s. 3445 Section 3445. 560.905 of the statutes is repealed.

AB40, s. 3446 Section 3446. 560.92 of the statutes is repealed.

AB40, s. 3447 Section 3447. 560.93 of the statutes is repealed.

AB40, s. 3448 Section 3448. 560.96 of the statutes is renumbered 238.23, and 238.23 (2) (a) and (b), (3) (a) (intro.), (b) (intro.), (c) and (d), (4) (a) (intro.) and (b) and (5) (intro.), (e) and (g), as renumbered, are amended to read:

AB40,1241,18 238.23 (2) (a) Except as provided in par. (c), the department corporation may designate up to 8 areas in the state as technology zones. A business that is located in a technology zone and that is certified by the department corporation under sub. (3) is eligible for a tax credit as provided in sub. (3).

AB40,1242,3 (b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the department corporation first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the department corporation may allocate the amount of unallocated airport development zone tax credits, as provided under s. 560.7995 238.3995 (3) (b), to technology zones for which the $5,000,000 maximum allocation is insufficient. The department corporation may change the boundaries of a technology zone during the time that its designation is in effect. A change in the boundaries of a technology zone does not affect the duration of the designation of the area or the maximum tax credit amount that may be claimed in the technology zone.

AB40,1242,6 (3) (a) (intro.) Except as provided in par. (e), the department corporation may certify for tax credits in a technology zone a business that satisfies all of the following requirements:

AB40,1242,8 (b) (intro.) In determining whether to certify a business under this subsection, the department corporation shall consider all of the following:

AB40,1242,16 (c) When the department corporation certifies a business under this subsection, the department corporation shall establish a limit on the amount of tax credits that the business may claim. Unless its certification is revoked, and subject to the limit on the tax credit amount established by the department corporation under this paragraph, a business that is certified may claim a tax credit for 3 years, except that a business that experiences growth, as determined for that business by the department corporation under par. (d) and sub. (5) (e), may claim a tax credit for up to 5 years.

AB40,1242,24 (d) The department corporation shall enter into an agreement with a business that is certified under this subsection. The agreement shall specify the limit on the amount of tax credits that the business may claim, the extent and type of growth, which shall be specific to the business, that the business must experience to extend its eligibility for a tax credit, the business' baseline against which that growth will be measured, any other conditions that the business must satisfy to extend its eligibility for a tax credit, and reporting requirements with which the business must comply.

AB40,1243,2 (4) (a) (intro.) The department of commerce corporation shall notify the department of revenue of all the following:

AB40,1243,5 (b) The department corporation shall annually verify information submitted to the department corporation under ss. 71.07 (2di), (2dm), (2dx), and (3g), 71.28 (1di), (1dm), (1dx), and (3g), and 71.47 (1di), (1dm), (1dx), and (3g).

AB40,1243,7 (5) (intro.) The department corporation shall promulgate adopt rules for the operation of this section, including rules related to all the following:

AB40,1243,11 (e) Standards for extending a business's certification, including what measures, in addition to job creation, the department corporation will use to determine the growth of a specific business and how the department corporation will establish baselines against which to measure growth.

AB40,1243,13 (g) The exchange of information between the department of commerce corporation and the department of revenue.