AB227,184,2518
(c) When the
corporation authority certifies a business under this subsection,
19the
corporation authority shall establish a limit on the amount of tax credits that the
20business may claim. Unless its certification is revoked, and subject to the limit on
21the tax credit amount established by the
corporation
authority under this
22paragraph, a business that is certified may claim a tax credit for 3 years, except that
23a business that experiences growth, as determined for that business by the
24corporation authority under par. (d) and sub. (5) (e), may claim a tax credit for up to
255 years.
AB227,185,8
1(d) The
corporation authority shall enter into an agreement with a business
2that is certified under this subsection. The agreement shall specify the limit on the
3amount of tax credits that the business may claim, the extent and type of growth,
4which shall be specific to the business, that the business must experience to extend
5its eligibility for a tax credit, the business' baseline against which that growth will
6be measured, any other conditions that the business must satisfy to extend its
7eligibility for a tax credit, and reporting requirements with which the business must
8comply.
AB227,185,10
9(4) (a) (intro.) The
corporation
authority shall notify the department of revenue
10of all the following:
AB227,185,1311
(b) The
corporation authority shall annually verify information submitted to
12the corporation it under ss. 71.07 (2di), (2dm), (2dx), and (3g), 71.28 (1di), (1dm),
13(1dx), and (3g), and 71.47 (1di), (1dm), (1dx), and (3g).
AB227,185,16
14(5) (intro.) The
corporation authority shall adopt
rules policies and procedures 15for the operation of this section, including
rules
policies and procedures related to all
16of the following:
AB227,185,2017
(e) Standards for extending a business's certification, including what
18measures, in addition to job creation, the
corporation
authority will use to determine
19the growth of a specific business and how the
corporation authority will establish
20baselines against which to measure growth.
AB227,185,2221
(g) The exchange of information between the
corporation authority and the
22department of revenue.
AB227,521
23Section
521. 238.25 of the statutes is repealed.
AB227,522
24Section
522. 238.26 of the statutes is repealed.
AB227,523
1Section
523. Subchapter II (title) of chapter 238 [precedes 238.30] of the
2statutes is renumbered subchapter III (title) of chapter 235 [precedes 235.30].
AB227,524
3Section
524. 238.30 of the statutes is renumbered 235.30, and 235.30 (intro.),
4(2g), (2m) (b) (intro.) and (7) (b) 1. and 2., (c) and (d), as renumbered, are amended
5to read:
AB227,186,7
6235.30 Definitions. (intro.) In this section and ss.
238.301 to 238.395 235.301
7to 235.395 and
238.398 235.398:
AB227,186,8
8(2g) "Eligible activity" means an activity described under s.
238.302 235.302.
AB227,186,12
9(2m) (b) (intro.) The
corporation
authority may grant exceptions to the
10requirement under par. (a) that a full-time job means a position in which an
11individual, as a condition of employment, is required to work at least 2,080 hours per
12year if all of the following apply:
AB227,186,18
13(7) (b) 1. Except as provided in subd. 2., in s.
238.395 235.395, "tax benefits"
14means the development zones investment credit under ss. 71.07 (2di), 71.28 (1di),
15and 71.47 (1di) and the development zones credit under ss. 71.07 (2dx), 71.28 (1dx),
1671.47 (1dx), and 76.636. With respect to the development opportunity zones under
17s.
238.395 235.395 (1) (e) and (f), "tax benefits" also means the development zones
18capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).
AB227,186,2219
2. With respect to the development opportunity zones under s.
238.395 235.395 20(1) (g), (h), and (i), "tax benefits" means the development zone credits under ss. 71.07
21(2dx), 71.28 (1dx), 71.47 (1dx), and 76.636 and the development zones capital
22investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).
AB227,186,2523
(c) In s.
238.398 235.398, "tax benefits" means the development zones capital
24investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm) and the
25development zones credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.
AB227,187,3
1(d) In ss.
238.301 to 238.306 235.301 to 235.306, "tax benefits" means the
2economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and
376.637.
AB227,525
4Section
525. 238.301 of the statutes is renumbered 235.301, and 235.301 (1)
5(intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are
6amended to read:
AB227,187,97
235.301
(1) Application. (intro.) Any person may apply to the
corporation 8authority on a form prepared by the
corporation authority for certification under this
9section. The application shall include all of the following:
AB227,187,1110
(e) Other information required by the
corporation
authority or the department
11of revenue.
AB227,187,15
12(2) (a) The
corporation authority may certify a person who submits an
13application under sub. (1) if, after conducting an investigation, the
corporation 14authority determines that the person is conducting or intends to conduct at least one
15eligible activity.
AB227,187,1716
(b) The
corporation authority shall provide a person certified under this section
17and the department of revenue with a copy of the certification.
AB227,187,20
18(3) Contract. (intro.) A person certified under this section shall enter into a
19written contract with the
corporation authority. The contract shall include
20provisions that detail all of the following:
AB227,187,2321
(b) Whether any of the eligible activities will occur in an economically
22distressed area, as designated by the
corporation
authority under s.
238.304 235.304 23(1).
AB227,187,2524
(c) Whether any of the eligible activities will benefit members of a targeted
25group, as determined by the
corporation authority under s.
238.304 235.304 (2).
AB227,188,3
1(d) A compliance schedule that includes a sequence of anticipated actions to be
2taken or goals to be achieved by the person before the person may receive tax benefits
3under s.
238.303 235.303.
AB227,188,54
(f) If feasible, a determination of the tax benefits the person will be authorized
5to claim under s.
238.303 235.303 (2) if the person fulfills the terms of the contract.
AB227,526
6Section
526. 238.302 of the statutes is renumbered 235.302, and 235.302
7(intro.), (1), (2) and (3), as renumbered, are amended to read:
AB227,188,9
8235.302 Eligible activities. (intro.) A person who conducts or proposes to
9conduct any of the following may be certified under s.
238.301 235.301 (2):
AB227,188,12
10(1) A project that creates and maintains for a period of time established by the
11corporation by rule authority full-time jobs in addition to any existing full-time jobs
12provided by the person.
AB227,188,15
13(2) A project that involves a significant investment of capital, as defined by the
14corporation by rule authority under s.
238.306 235.306 (2) (b), by the person in new
15equipment, machinery, real property, or depreciable personal property.
AB227,188,19
16(3) A project that involves significant investments in the training or
17reeducation of employees, as defined by the
corporation by rule authority under s.
18238.306 235.306 (2) (c), by the person for the purpose of improving the productivity
19or competitiveness of the business of the person.
AB227,527
20Section
527. 238.303 of the statutes is renumbered 235.303, and 235.303 (1)
21(a), (am) and (b), (2) and (3), as renumbered, are amended to read:
AB227,189,322
235.303
(1) (a) Except as provided in pars. (am) and (b), and subject to a
23reallocation by the
corporation pursuant to rules adopted authority under s.
238.15 24235.15 (3) (d), the total tax benefits available to be allocated by the
corporation 25authority under ss.
238.301 to 238.306 235.301 to 235.306 may not exceed the sum
1of the tax benefits remaining to be allocated under s. 560.71 to 560.785, 2009 stats.,
2s. 560.797, 2009 stats., s. 560.798, 2009 stats., s. 560.7995, 2009 stats., and s. 560.96,
32009 stats., on March 6, 2009, plus $100,000,000.
AB227,189,174
(am) The
corporation authority may initially allocate only $61,000,000 of the
5additional $100,000,000 in tax benefits specified in par. (a). Before the
corporation 6authority allocates the remaining $39,000,000 in tax benefits specified in par. (a), the
7corporation authority shall submit its plan for such allocation, including a report
8that describes the intended use of the tax benefits, to the joint committee on finance.
9If the cochairpersons of the committee do not notify the
corporation authority within
1014 working days after the date of the
corporation's
authority's submittal that the
11committee has scheduled a meeting for the purpose of reviewing the plan, the plan
12may be implemented and the remaining amount may be allocated as proposed by the
13corporation authority. If, within 14 working days after the date of the
corporation's 14authority's submittal, the cochairpersons of the committee notify the
corporation 15authority that the committee has scheduled a meeting for the purpose of reviewing
16the proposed plan, the plan may be implemented and the remaining amount
17allocated only upon approval of the committee.
AB227,189,2318
(b) The
corporation authority may submit to the joint committee on finance a
19request in writing to exceed the total tax benefits specified in par. (a). The
20corporation authority shall submit with its request a justification for seeking an
21increase under this paragraph. The joint committee on finance, following its review,
22may approve or disapprove an increase in the total tax benefits available to be
23allocated under ss.
238.301 to 238.306 235.301 to 235.306.
AB227,190,4
24(2) Authority to claim tax benefits. The
corporation authority may authorize
25a person certified under s.
238.301 235.301 (2) to claim tax benefits only after the
1person has submitted a report to the
corporation authority that documents to the
2satisfaction of the
corporation authority that the person has complied with the terms
3of the contract under s.
238.301 235.301 (3) and the requirements of any applicable
4rules policies and procedures adopted under s.
238.306 235.306 (2).
AB227,190,7
5(3) Notice of eligibility. The
corporation authority shall provide to the person
6and to the department of revenue a notice of eligibility to receive tax benefits that
7reports the amount of tax benefits for which the person is eligible.
AB227,528
8Section
528. 238.304 of the statutes is renumbered 235.304, and 235.304
9(intro.) and (1), as renumbered, are amended to read:
AB227,190,14
10235.304 Eligible activities in economically distressed areas and
11benefiting members of targeted groups. (intro.) The
corporation authority may
12authorize a person certified under s.
238.301 235.301 (2) to claim additional tax
13benefits under s.
238.303 235.303 if, after conducting an investigation, the
14corporation authority determines any of the following:
AB227,190,18
15(1) The person conducts at least one eligible activity in an area designated by
16the
corporation authority as economically distressed. In designating an area as
17economically distressed under this subsection, the
corporation authority shall follow
18the methodology established
by rule under s.
238.306 235.306 (2) (e).
AB227,529
19Section
529. 238.3045 of the statutes is renumbered 235.3045, and 235.3045
20(1) (title), (a), (b) (intro.) and 4. and (c) 1., (2) (a) and (b), (3) and (4) (a) and (b), as
21renumbered, are amended to read:
AB227,191,722
235.3045
(1) (title)
Application and
corporation approval. (a) An applicant
23for certification for tax benefits under s.
238.301
235.301 may submit with its
24application under s.
238.301 235.301 (1) an application to the
corporation authority 25on a form prescribed by the
corporation authority to transfer those tax benefits to
1another person under this section. The application shall include the name, address,
2and tax identification number of the person to whom the applicant intends to
3transfer the tax benefits and any other information the
corporation authority 4requires. The
corporation authority shall notify the applicant of the
corporation's 5authority's determination concerning the transfer of tax benefits when the
6corporation authority notifies the applicant of the
corporation's authority's 7certification determination under s.
238.301 235.301.
AB227,191,118
(b) (intro.) The
corporation authority may approve the transfer of tax benefits
9under this section if the
corporation authority certifies the applicant under par. (a)
10for tax benefits under s.
238.301 235.301 and finds that the applicant meets at least
11one of the following conditions:
AB227,191,1412
4. Intends to expand its operations in this state, and that expansion will result
13in the applicant making a significant capital investment in property located in this
14state, as determined by the
corporation authority.
AB227,191,2315
(c) 1. Subject to subd. 2., a person that receives an approval under par. (b) shall
16transfer tax benefits in accordance with the terms of the application under par. (a)
17after the
corporation authority authorizes the person to claim tax benefits under s.
18238.303 235.303 (2) and provides the notice of eligibility under s.
238.303 235.303 (3).
19The notice of eligibility shall contain all relevant information concerning a transfer
20of tax benefits under this section. The person to whom tax benefits are transferred
21may carry forward, beginning on the date of the notice of eligibility, any unused
22amount of the value of those tax benefits as provided under the appropriate provision
23in ch. 71 or in s. 76.636.
AB227,192,3
24(2) (a) If the
corporation authority revokes a person's certification for tax
25benefits under s.
238.305 235.305, and, at the time of revocation, that person has
1transferred those tax benefits under this section, that person shall be liable for the
2full value of the tax benefits, and the person to whom the tax benefits were
3transferred may not claim any tax benefits that were not claimed prior to revocation.
AB227,192,64
(b) The
corporation authority shall notify the department of revenue of a
5revocation of tax benefits subject to par. (a), including the value of the tax benefits
6for which the person is liable.
AB227,192,9
7(3) Annual report. Annually, the
corporation authority shall submit a report
8to the joint committee on finance that provides a detailed assessment of the progress
9to date of the program under this section.
AB227,192,13
10(4) (a) Except as provided in par. (b), the
corporation authority may not
11authorize the transfer of tax benefits under this section that total more than
12$15,000,000, and the
corporation authority may not authorize the transfer of tax
13benefits after 36 months after April 4, 2014.
AB227,193,914
(b) Upon expiration of the 36-month period under par. (a), the
corporation 15authority may continue to authorize the transfer of tax benefits under this section
16for up to an additional 36 months, and the
corporation
authority may authorize the
17transfer of up to an additional $15,000,000 in tax benefits, if the
corporation 18authority determines that a continuation of the program under this section will
19promote significant economic development in this state. Before the
corporation 20authority authorizes the transfer of tax benefits under this paragraph, the chief
21executive officer of the
corporation authority shall notify the joint committee on
22finance in writing that the
corporation authority intends to continue authorizing the
23transfer of tax benefits under this section. That notice shall state the reasons
24supporting the
corporation's authority's determination that the transfer of
25additional tax benefits will promote significant economic development in this state.
1If, within 14 working days after the date of that notice, the cochairpersons of the
2committee do not notify the
corporation authority that the committee has scheduled
3a meeting to review the
corporation's authority's proposed continuation of the
4program, the
corporation authority may proceed to authorize the transfer of
5additional tax benefits under this section. If, within 14 working days after the date
6of that notice, the cochairpersons of the committee notify the
corporation authority 7that the committee has scheduled a meeting to review the proposed continuation of
8the program, the
corporation authority may proceed to authorize the transfer of
9additional tax benefits only upon approval of the committee.
AB227,530
10Section
530. 238.305 of the statutes is renumbered 235.305, and 235.305
11(intro.), (1) and (2), as renumbered, are amended to read:
AB227,193,13
12235.305 Revocation of certification. (intro.) The
corporation authority 13shall revoke the certification of a person who does any of the following:
AB227,193,15
14(1) Supplies false or misleading information to obtain certification under s.
15238.301 235.301 (2).
AB227,193,17
16(2) Supplies false or misleading information to obtain tax benefits under s.
17238.303 235.303.
AB227,531
18Section
531. 238.306 of the statutes is renumbered 235.306, and 235.306
19(intro.), (1) (a) and (b), (2) (intro.), (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k)
20and (3), as renumbered, are amended to read:
AB227,193,22
21235.306 Responsibilities of the corporation authority. (intro.) The
22corporation authority shall do all of the following:
AB227,193,25
23(1) (a) Annually verify information submitted to the department of revenue
24under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under
25s.
238.301 235.301 (2) and eligible to receive tax benefits under s.
238.303 235.303.
AB227,194,2
1(b) Notify and obtain written approval from the chief executive officer of the
2corporation authority for any certification under sub. (2) (j).
AB227,194,4
3(2) Rules Policies and procedures. (intro.) Establish by
rule policies and
4procedures all of the following:
AB227,194,85
(a) A schedule of hourly wage ranges to be paid, and health insurance benefits
6to be provided, to an employee by a person certified under s.
238.301 235.301 (2) and
7the corresponding per employee tax benefit for which a person certified under s.
8238.301 235.301 (2) may be eligible.
AB227,194,149
(b) A definition of "significant investment of capital" for purposes of s.
238.302 10235.302 (2), together with a corresponding schedule of tax benefits for which a person
11who is certified under s.
238.301 235.301 (2) and who conducts a project described
12in s.
238.302 235.302 (2) may be eligible. The
corporation authority shall include in
13the definition required under this paragraph a schedule of investments that takes
14into consideration the size or nature of the business.
AB227,194,1815
(c) A definition of "significant investments in the training or reeducation of
16employees" for purposes of s.
238.302 235.302 (3), together with a corresponding
17schedule of tax benefits for which a person who is certified under s.
238.301 235.301 18(2) and who conducts a project under s.
238.302 235.302 (3) may be eligible.
AB227,194,2119
(d) A schedule of tax benefits for which a person who is certified under s.
20238.301 235.301 (2) and who conducts a project that will result in the location or
21retention of a person's corporate headquarters in Wisconsin may be eligible.
AB227,194,2522
(e) (intro.) The methodology for designating an area as economically distressed
23under s.
238.304 235.304 (1). The methodology under this paragraph shall require
24the
corporation authority to consider the most current data available for the area and
25for the state on the following indicators:
AB227,195,3
1(f) A schedule of additional tax benefits for which a person who is certified
2under s.
238.301 235.301 (2) and who conducts an eligible activity described under
3s.
238.304 235.304 may be eligible.
AB227,195,64
(g) Reporting requirements, minimum benchmarks, and outcomes expected of
5a person certified under s.
238.301 235.301 (2) before that person may receive tax
6benefits under s.
238.303 235.303.
AB227,195,87
(h) Policies, criteria, and methodology for allocating a portion of the tax benefits
8available under s.
238.303 235.303 to rural areas.
AB227,195,109
(i) Policies, criteria, and methodology for allocating a portion of the tax benefits
10available under s.
238.303 235.303 to small businesses.
AB227,195,1111
(k) Procedures for implementing ss.
238.301 to 238.306 235.301 to 235.306.
AB227,195,17
12(3) Reporting. Annually, 6 months after the report has been submitted under
13s.
238.07 235.016 (2), submit to the joint legislative audit committee and to the
14appropriate standing committees of the legislature under s. 13.172 (3) a
15comprehensive report assessing the program under ss.
238.301 to 238.306 235.301
16to 235.306. The report under this subsection shall update the applicable information
17provided in the report under s.
238.07 235.016 (2).
AB227,532
18Section
532. 238.31 of the statutes is renumbered 235.31, and 235.31 (1)
19(intro.), (ac), (am), (b), (d) and (e) (intro.), 4. a. and d., (1m) (intro.) and (h), (2) and
20(3) (intro.), as renumbered, are amended to read:
AB227,195,2221
235.31
(1) (intro.) The
corporation
authority may designate an area as a
22development zone if all of the following apply:
AB227,195,2423
(ac) The
corporation authority has invited a local governing body to nominate
24the area under s.
238.315 235.315.
AB227,196,2
1(am) A local governing body nominates the area as described in s.
238.32 2235.32.
AB227,196,43
(b) The
corporation authority has evaluated the local governing body's
4application as described in s.
238.325 235.325.
AB227,196,55
(d) The area meets the applicable requirements under s.
238.335 235.335.
AB227,196,66
(e) (intro.) The
corporation authority determines all of the following:
AB227,196,97
4. a. The unemployment rate in the area is higher than the state average for
8the 18 months immediately preceding the date on which the application under s.
9238.32 235.32 (2) or (3) was submitted to the
corporation authority.
AB227,196,1310
d. In the 36 months immediately preceding the date on which the application
11under s.
238.32 235.32 (2) or (3) was submitted to the
corporation authority, a number
12of workers in the area were permanently laid off by their employer or became
13unemployed as a result of a business action subject to s. 109.07 (1m).
AB227,196,15
14(1m) (intro.) In making a determination under sub. (1) (e), the
corporation 15authority shall consider all of the following:
AB227,196,1616
(h) Any other factors that the
corporation authority considers relevant.
AB227,196,19
17(2) In determining whether an area meets the requirements under sub. (1) (e)
18or s.
238.335 235.335, the
corporation authority may rely on any data provided by the
19local governing body that the
corporation authority determines is relevant.
AB227,196,20
20(3) (intro.) The
corporation authority shall do all of the following:
AB227,533
21Section
533. 238.315 of the statutes is renumbered 235.315 and amended to
22read:
AB227,197,2
23235.315 Invitation to nominate area. If the
corporation authority 24determines that an area has experienced or is about to experience economic distress,
1the
corporation authority may invite local governing bodies in the area to nominate
2the area as a development zone.
AB227,534
3Section
534. 238.32 of the statutes is renumbered 235.32, and 235.32 (1)
4(intro.), (2) (intro.), (c), (d) and (i), (3) and (5), as renumbered, are amended to read:
AB227,197,85
235.32
(1) (intro.) A local governing body may nominate an area as a
6development zone, if the
corporation authority has invited the governing body to
7nominate the area under s.
238.315 235.315 and if the governing body does all of the
8following: