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2011 - 2012 LEGISLATURE
February 17, 2012 - Introduced by Representative Williams. Referred to
Committee on Jobs, Economy and Small Business.
AB572,1,7 1An Act to repeal 238.399 (5) (c) 2. a.; to renumber and amend 238.16 (1) (c);
2to amend 71.07 (2dx) (a) 4., 71.28 (1dx) (a) 4., 71.47 (1dx) (a) 4., 76.636 (1) (d),
3238.07 (1), 238.16 (3) (intro.), 238.16 (3) (am), 238.16 (4) (b) 1. (intro.), 238.30
4(intro.), 238.30 (2m) (b), 238.399 (1) (am) 2., 238.399 (5) (c) 2. (intro.) and
5238.399 (5) (d) 1.; and to create 238.16 (1) (c) 2. of the statutes; relating to:
6tax credit programs administered by the Wisconsin Economic Development
7Corporation.
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin Economic Development Corporation (WEDC)
administers the jobs tax credit, the economic development tax credit, the
development opportunity zone tax credit, and the enterprise zone tax credit (tax
credit programs). This bill makes various changes to these tax credit programs.
Definition of "full-time job"
Under current law, each of the tax credit programs defines a "full-time job" as
a job in which an individual must work 2,080 hours per year as a condition of his or
her employment. However, for purposes of the enterprise zone tax credit program
and the economic development tax credit program, WEDC is currently authorized to
make an exception to the 2,080 hour requirement for individuals who work at a job
not less than 37.5 hours per week. Under this bill, the definition of "full-time job"

in each of the tax credit programs provides that WEDC may make an exception to
the 2,080 hours per year requirement as long as the employed individual receives
benefits that are acceptable to the corporation.
Jobs Tax Credit
Under current law, WEDC may certify a person to claim the jobs tax credit if
the person operates or intends to operate a business in Wisconsin, will increase its
net employment in Wisconsin, and will pay annual wages to a full-time employee for
whom the person claims tax benefits of at least $20,000 in Tier I counties or
municipalities and at least $30,000 in Tier II counties or municipalities. A person
certified under the program may receive per-employee tax benefits in the amount
of 10 percent of the wages paid to a full-time employee who meets the wage
requirement for the county or municipality A person certified under the program
may also receive tax benefits for providing job training to its employees.
Under this bill, a person certified for the jobs tax credit program may receive
per-employee tax benefits up to 10 percent of the wages paid to a full-time employee
who meets the wage requirements for the county or municipality. This bill also
authorizes WEDC to certify a person to claim the jobs tax credit if the person
maintains increased net employment in the person's business.
Enterprise Zone Tax Credit.
Under current law, WEDC is authorized to designate up to 20 areas in the state
as enterprise zones. Currently, WEDC may certify businesses to claim the enterprise
zone tax credit, including:
1. A business that expands its operations in an enterprise zone and that makes
a capital investment in property located in the enterprise zone if: (a) the value of the
capital investment is equal to at least 10 percent of the business's gross revenues
from business in the state in the preceding tax year; (b) the business enters into an
agreement with WEDC to claim tax benefits only for years during which the business
maintains the capital investment; and (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 Wisconsin, but outside
the zone.
2. A business that retains jobs in an enterprise zone, but only if the business
makes a significant capital investment in property located in the zone, and either (a)
the business is an original equipment manufacturer with a significant supply chain
in Wisconsin or (b) more than 500 full-time employees are employed by the business
in the enterprise zone.
This bill makes the following changes to the requirements for certification to
claim the enterprise zone tax credit:
1. For a business that expands its operations in an enterprise zone, this bill
eliminates the requirement that the value of a qualifying capital investment in an
enterprise zone must be at least 10 percent of the business's gross revenues. Under
this bill, a business that expands operations in an enterprise zone may qualify for
the enterprise zone tax credit by making a significant capital investment, as
determined by WEDC.

2. For a business that retains jobs in the enterprise zone, the bill eliminates the
requirement that the business must be an original equipment manufacturer with a
significant supply chain in Wisconsin and allows certification for a business that is
any type of manufacturer with a significant supply chain in Wisconsin.
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:
AB572, s. 1 1Section 1. 71.07 (2dx) (a) 4. of the statutes is amended to read:
AB572,3,82 71.07 (2dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time
3position in which an individual, as a condition of employment, is required to work at
4least 2,080 hours per year, including paid leave and holidays, and for which the
5individual receives pay that is equal to at least 150% of the federal minimum wage
6and receives benefits that are not required by federal or state law. "Full-time job"
7does not include initial training before an employment position begins
has the
8meaning given in s. 238.30 (2m)
.
AB572, s. 2 9Section 2. 71.28 (1dx) (a) 4. of the statutes is amended to read:
AB572,3,1610 71.28 (1dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time
11position in which an individual, as a condition of employment, is required to work at
12least 2,080 hours per year, including paid leave and holidays, and for which the
13individual receives pay that is equal to at least 150% of the federal minimum wage
14and receives benefits that are not required by federal or state law. "Full-time job"
15does not include initial training before an employment position begins
has the
16meaning given in s. 238.30 (2m)
.
AB572, s. 3 17Section 3. 71.47 (1dx) (a) 4. of the statutes is amended to read:
AB572,4,518 71.47 (1dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time
19position in which an individual, as a condition of employment, is required to work at

1least 2,080 hours per year, including paid leave and holidays, and for which the
2individual receives pay that is equal to at least 150% of the federal minimum wage
3and receives benefits that are not required by federal or state law. "Full-time job"
4does not include initial training before an employment position begins
has the
5meaning given in s. 238.30 (2m)
.
AB572, s. 4 6Section 4. 76.636 (1) (d) of the statutes is amended to read:
AB572,4,137 76.636 (1) (d) "Full-time job" means a regular, nonseasonal, full-time position
8in which an individual, as a condition of employment, is required to work at least
92,080 hours per year, including paid leave and holidays, and for which the individual
10receives pay that is equal to at least 150 percent of the federal minimum wage and
11receives benefits that are not required by federal or state law. "Full-time job" does
12not include initial training before an employment position begins
has the meaning
13given in s. 238.30 (2m)
.
AB572, s. 5 14Section 5. 238.07 (1) of the statutes, as created by 2011 Wisconsin Act 7, is
15amended to read:
AB572,4,1916 238.07 (1) Annually, by January before July 1, the board shall submit to the
17chief clerk of each house of the legislature, for distribution to the legislature under
18s. 13.172 (2), a report identifying the economic development projects that the board
19intends to develop and implement during the current calendar following fiscal year.
AB572, s. 6 20Section 6. 238.16 (1) (c) of the statutes, as affected by 2011 Wisconsin Act 32,
21is renumbered 238.16 (1) (c) 1. and amended to read:
AB572,5,322 238.16 (1) (c) 1. "Full-time Except as provided in subd. 2., "full-time job" means
23a regular, nonseasonal full-time position in which an individual, as a condition of
24employment, is required to work at least 2,080 hours per year, including paid leave
25and holidays, and for which the individual receives pay that is equal to at least 150

1percent of the federal minimum wage
earns at least $20,000 in wages and receives
2benefits that are not required by federal or state law. "Full-time job" does not include
3initial training before an employment position begins.
AB572, s. 7 4Section 7. 238.16 (1) (c) 2. of the statutes is created to read:
AB572,5,105 238.16 (1) (c) 2. The corporation may specify circumstances under which the
6corporation may grant exceptions to the requirement under subd. 1. that a full-time
7job means a position in which an individual, as a condition of employment, is
8required to work at least 2,080 hours per year, but under no circumstances may a
9full-time job mean a position in which a individual does not receive benefits
10acceptable to the corporation.
AB572, s. 8 11Section 8. 238.16 (3) (intro.) of the statutes, as affected by 2011 Wisconsin Act
1232
, is amended to read:
AB572,5,1713 238.16 (3) Eligibility for tax benefits. (intro.) A person certified under sub.
14(2) may receive tax benefits under this section if, in each year for which the person
15claims tax benefits under this section, the person increases net employment or
16maintains increased net employment
in the person's business, and one of the
17following applies:
AB572, s. 9 18Section 9. 238.16 (3) (am) of the statutes, as created by 2011 Wisconsin Act 32,
19is amended to read:
AB572,5,2120 238.16 (3) (am) The person increases net employment or maintains increased
21net employment
in the person's business.
AB572, s. 10 22Section 10. 238.16 (4) (b) 1. (intro.) of the statutes, as affected by 2011
23Wisconsin Act 32
, is amended to read:
AB572,6,324 238.16 (4) (b) 1. (intro.) The corporation may award to a person certified under
25sub. (2) tax benefits for each eligible employee in an amount equal to that does not

1exceed
10 percent of the wages paid by the person to that employee or $10,000,
2whichever is less, if that employee earned wages in the year for which the tax benefit
3is claimed equal to one of the following:
AB572, s. 11 4Section 11. 238.30 (intro.) of the statutes, as affected by 2011 Wisconsin Act
532
, is amended to read:
AB572,6,6 6238.30 Definitions. (intro.) In this section and ss. 238.31 238.301 to 238.395:
AB572, s. 12 7Section 12. 238.30 (2m) (b) of the statutes, as affected by 2011 Wisconsin Act
832
, is amended to read:
AB572,6,159 238.30 (2m) (b) The corporation may adopt a rule specifying specify
10circumstances under which the corporation may grant exceptions to the requirement
11under par. (a) that a full-time job means a job in which an individual, as a condition
12of employment, is required to work at least 2,080 hours per year, but under no
13circumstances may a full-time job mean a job in which an individual , as a condition
14of employment, is required to work less than 37.5 hours per week
does not receive
15benefits acceptable to the corporation
.
AB572, s. 13 16Section 13. 238.399 (1) (am) 2. of the statutes, as affected by 2011 Wisconsin
17Act 32
, is amended to read:
AB572,6,2418 238.399 (1) (am) 2. The corporation may by rule specify circumstances under
19which the corporation may grant exceptions to the requirement under subd. 1. that
20a full-time employee means an individual who, as a condition of employment, is
21required to work at least 2,080 hours per year, but under no circumstances may a
22full-time employee mean an individual who, as a condition of employment, is
23required to work less than 37.5 hours per week
does not receive benefits acceptable
24to the corporation
.
AB572, s. 14
1Section 14. 238.399 (5) (c) 2. (intro.) of the statutes, as affected by 2011
2Wisconsin Act 32
, is amended to read:
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