238.15(1)(m)1.c.
c. The activities of the business's headquarters, as determined by the corporation.
238.15(1)(m)2.
2. The amount of a penalty payment under
subd. 1. is any of the following:
238.15(1)(m)2.a.
a. If the relocation occurs less than 12 months after the investment, 100 percent of the tax credit that was claimed under
s. 71.07 (5d) as the result of the investment.
238.15(1)(m)2.b.
b. If the relocation occurs 12 months or more after the investment but less than 24 months after the investment, 80 percent of the tax credit that was claimed under
s. 71.07 (5d) as the result of the investment.
238.15(1)(m)2.c.
c. If the relocation occurs occurs 24 months or more after the investment but less than 36 months after the investment, 60 percent of the tax credit that was claimed under
s. 71.07 (5d) as the result of the investment.
238.15(2)
(2) Early stage seed investment tax credits. The corporation shall implement a program to certify investment fund managers for purposes of
ss. 71.07 (5b),
71.28 (5b),
71.47 (5b), and
76.638. An investment fund manager desiring certification shall submit an application to the corporation. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the corporation may certify the manager and determine the amount that qualifies for purposes of
ss. 71.07 (5b),
71.28 (5b),
71.47 (5b), and
76.638. In determining whether to certify an investment fund manager, the corporation shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The corporation may certify only investment fund managers that commit to consider placing investments in businesses certified under
sub. (1).
238.15(3)(a)(a)
List of certified businesses and investment fund managers. The corporation shall maintain a list of businesses certified under
sub. (1) and investment fund managers certified under
sub. (2) and shall permit public access to the lists through the corporation's Internet Web site.
238.15(3)(b)
(b)
Notification of department of revenue. The corporation shall notify the department of revenue of every certification issued under
subs. (1) and
(2) and the date on which any such certification is revoked or expires.
238.15(3)(d)
(d)
Rules. The corporation, in consultation with the department of revenue, shall adopt rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of
s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under
s. 71.07 (5d) that may be claimed for investments in businesses certified under
sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $6,500,000 for calendar year 2010, and $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under
sub. (1). The rules shall also limit the aggregate amount of the tax credits under
ss. 71.07 (5b),
71.28 (5b),
71.47 (5b), and
76.638 that may be claimed for investments paid to fund managers certified under
sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $8,000,000 for calendar year 2010, and $20,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under
sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, a person who receives a credit under
ss. 71.07 (5b) and
(5d),
71.28 (5b),
71.47 (5b), or
76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation, occurs during the 3-year period. The rules shall permit the corporation to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under
s. 238.16 (1) (d), if all of the following apply:
238.15(3)(d)1.
1. The corporation notifies the joint committee on finance in writing of its proposed reallocation.
238.15(3)(d)2.a.
a. The cochairpersons of the joint committee on finance fail to notify the corporation, within 14 working days after the date of the corporation's notification under
subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.
238.15(3)(d)2.b.
b. The cochairpersons of the joint committee on finance notify the corporation that the committee has approved the proposed reallocation.
238.15(3)(e)
(e)
Transfer. A person who is eligible to claim a credit under
s. 71.07 (5b),
71.28 (5b),
71.47 (5b), or
76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under
s. 71.02,
71.23,
71.47, or
subch. III of ch. 76, if the person receives prior authorization from the investment fund manager and the manager then notifies the corporation and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The corporation may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred.
238.16
238.16
Jobs tax credit. 238.16(1)(a)1.1. 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.
238.16(1)(a)2.
2. "Business" does not include a store or shop in which retail sales is the principal business.
238.16(1)(b)
(b) "Eligible employee" means a person employed in a full-time job by a person certified under
sub. (2).
238.16(1)(c)1.1. Except as provided in
subd. 2., "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.
238.16(1)(c)2.
2. The corporation may grant exceptions to the requirement under
subd. 1. that a full-time job means a position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year if all of the following apply:
238.16(1)(c)2.a.
a. The annual pay for the position is more than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage.
238.16(1)(c)2.b.
b. An individual in the position is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.
238.16(2)
(2) The corporation may certify a person to receive tax benefits under this section if all of the following apply:
238.16(2)(a)
(a) The person is operating or intends to operate a business in this state.
238.16(2)(b)
(b) The person applies under this section and enters into a contract with the corporation.
238.16(3)
(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 this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under
sub. (2), as determined by the corporation under its policies and procedures, and one of the following applies:
238.16(3)(a)
(a) In a tier I county or municipality, an eligible employee for whom the person claims a tax credit will earn at least the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in wages from the person in the year for which the credit is claimed.
238.16(3)(b)
(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 in wages from the person in the year for which the credit is claimed.
238.16(3)(c)
(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.
238.16(4)
(4) Duration, limits, and expiration. 238.16(4)(a)(a) The certification of a person under
sub. (2) may remain in effect for no more than 10 cumulative years.
238.16(4)(b)1.1. The corporation 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 or $10,000, whichever is less, if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:
238.16(4)(b)1.a.
a. In a tier I county or municipality, at least the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage.
238.16(4)(b)2.
2. The corporation may award to a person certified under
sub. (2) tax benefits in an amount to be determined by the corporation for costs incurred by the person to undertake the training activities described in
sub. (3) (c).
238.16(4)(c)
(c) Subject to a reallocation by the corporation pursuant to rules adopted under
s. 238.15 (3) (d), the corporation may allocate up to $5,000,000 in tax benefits under this section in any calendar year, except that beginning on July 1, 2011, the corporation may allocate up to $10,000,000 in tax benefits under this section in any calendar year.
238.16(5)(a)(a) The corporation shall notify the department of revenue when the corporation certifies a person to receive tax benefits.
238.16(5)(b)
(b) The corporation shall notify the department of revenue within 30 days of revoking a certification made under
sub. (2).
238.16(5)(c)
(c) The corporation 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).
238.16(5)(d)
(d) The corporation 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.
238.16(5)(f)
(f) The corporation shall adopt policies and procedures for the implementation and operation of this section, including policies and procedures relating to the following:
238.16(5)(f)1.
1. The definitions of a tier I county or municipality and a tier II county or municipality. The corporation may consider all of the following information when establishing the definitions required under this subdivision:
238.16(5)(f)1.e.
e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.
238.16(5)(f)2.
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.
238.16(5)(f)5.
5. Determining a change in net employment in a person's business.
238.16 History
History: 2009 a. 28,
265;
2011 a. 32 ss.
2864,
3357 to
3366; Stats. 2011 s. 238.16;
2011 a. 88;
2013 a. 20,
145.
238.17
238.17
Historic rehabilitation tax credit. For taxable years beginning after December 31, 2013, the corporation may certify a person to claim a tax credit under
s. 71.07 (9m),
71.28 (6), or
71.47 (6), if the corporation determines that the person is conducting an eligible activity under
s. 71.07 (9m),
71.28 (6), or
71.47 (6). No person may claim a tax credit under
s. 71.07 (9m),
71.28 (6), or
71.47 (6) without first being certified under this section. The corporation shall notify the department of revenue no later than January 15 of each year of the amount of the credits certified under this section and the name, address, and tax identification number of each person certified to claim the credit. The corporation shall notify the department of revenue of any revoked certification no later than 2 months after the revocation date.
238.17 History
History: 2013 a. 62.
238.23
238.23
Technology zones. 238.23(1)(1) In this section, "tax credit" means a credit under
s. 71.07 (2di),
(2dm),
(2dx), or
(3g),
71.28 (1di),
(1dm),
(1dx), or
(3g), or
71.47 (1di),
(1dm),
(1dx), or
(3g).
238.23(2)(a)(a) Except as provided in
par. (c), the 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 corporation under
sub. (3) is eligible for a tax credit as provided in
sub. (3).
238.23(2)(b)
(b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the corporation first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the corporation may allocate the amount of unallocated airport development zone tax credits, as provided under
s. 238.3995 (3) (b), to technology zones for which the $5,000,000 maximum allocation is insufficient. The 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.
238.23(2)(c)
(c) No area may be designated as a technology zone under this subsection on or after March 6, 2009.
238.23(3)(a)(a) Except as provided in
par. (e), the corporation may certify for tax credits in a technology zone a business that satisfies all of the following requirements:
238.23(3)(b)
(b) In determining whether to certify a business under this subsection, the corporation shall consider all of the following:
238.23(3)(b)2.
2. The extent and nature of the high technology used by the business.
238.23(3)(b)3.
3. The likelihood that the business will attract related enterprises.
238.23(3)(b)4.
4. The amount of capital investment that the business is likely to make in the state.
238.23(3)(c)
(c) When the corporation certifies a business under this subsection, the 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 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 corporation under
par. (d) and
sub. (5) (e), may claim a tax credit for up to 5 years.
238.23(3)(d)
(d) The 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.
238.23(3)(e)
(e) No business may be certified under this subsection on or after March 6, 2009.
238.23(4)(a)(a) The corporation shall notify the department of revenue of all the following:
238.23(4)(a)2.
2. A business's certification and the limit on the amount of tax credits that the business may claim.
