SB148: Bill Text

SB148,181,10 235.16 (1) (c) 2. (intro.) The corporation authority 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:

SB148,181,12 (2) (intro.) The corporation authority may certify a person to receive tax benefits under this section if all of the following apply:

SB148,181,14 (b) The person applies under this section and enters into a contract with the corporation authority.

SB148,181,21 (3) Eligibility for tax benefits. (intro.) 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 authority under its policies and procedures, and one of the following applies:

SB148,182,2 (4) (b) 1. (intro.) The corporation authority 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:

SB148,182,5 2. The corporation authority may award to a person certified under sub. (2) tax benefits in an amount to be determined by the corporation authority for costs incurred by the person to undertake the training activities described in sub. (3) (c).

SB148,182,10 (c) Subject to a reallocation by the corporation authority pursuant to rules policies and procedures adopted under s. 238.15 235.15 (3) (d), the corporation authority 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.

SB148,182,11 (5) (title) Duties of the corporation authority.

SB148,182,13 (a) The corporation authority shall notify the department of revenue when the corporation authority certifies a person to receive tax benefits.

SB148,182,15 (b) The corporation authority shall notify the department of revenue within 30 days of revoking a certification made under sub. (2).

SB148,182,18 (c) The corporation authority 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).

SB148,182,21 (d) The corporation authority 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.

SB148,182,24 (e) The corporation authority shall annually verify the information submitted to the corporation authority by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

SB148,183,3 (f) (intro.) The corporation authority shall adopt policies and procedures for the implementation and operation of this section, including policies and procedures relating to the following:

SB148,183,6 1. (intro.) The definitions of a tier I county or municipality and a tier II county or municipality. The corporation authority may consider all of the following information when establishing the definitions required under this subdivision:

SB148,519 Section 519. 238.17 of the statutes is renumbered 235.17 and amended to read:

SB148,183,19 235.17 Historic rehabilitation tax credit. For taxable years beginning after December 31, 2013, the corporation authority may certify a person to claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6), if the corporation authority 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 authority 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 authority shall notify the department of revenue of any revoked certification no later than 2 months after the revocation date.

SB148,520 Section 520. 238.23 of the statutes is renumbered 235.23, and 235.23 (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:

SB148,184,2 235.23 (2) (a) Except as provided in par. (c), the corporation authority 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 authority under sub. (3) is eligible for a tax credit as provided in sub. (3).

SB148,184,12 (b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the corporation authority first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the corporation authority may allocate the amount of unallocated airport development zone tax credits, as provided under s. 238.3995 235.3995 (3) (b), to technology zones for which the $5,000,000 maximum allocation is insufficient. The corporation authority 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.

SB148,184,15 (3) (a) (intro.) Except as provided in par. (e), the corporation authority may certify for tax credits in a technology zone a business that satisfies all of the following requirements:

SB148,184,17 (b) (intro.) In determining whether to certify a business under this subsection, the corporation authority shall consider all of the following:

SB148,184,25 (c) When the corporation authority certifies a business under this subsection, the corporation authority 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 authority 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 authority under par. (d) and sub. (5) (e), may claim a tax credit for up to 5 years.

SB148,185,8 (d) The corporation authority 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.

SB148,185,10 (4) (a) (intro.) The corporation authority shall notify the department of revenue of all the following:

SB148,185,13 (b) The corporation authority shall annually verify information submitted to the corporation it under ss. 71.07 (2di), (2dm), (2dx), and (3g), 71.28 (1di), (1dm), (1dx), and (3g), and 71.47 (1di), (1dm), (1dx), and (3g).

SB148,185,16 (5) (intro.) The corporation authority shall adopt rules policies and procedures for the operation of this section, including rules policies and procedures related to all of the following:

SB148,185,20 (e) Standards for extending a business's certification, including what measures, in addition to job creation, the corporation authority will use to determine the growth of a specific business and how the corporation authority will establish baselines against which to measure growth.

SB148,185,22 (g) The exchange of information between the corporation authority and the department of revenue.

SB148,521 Section 521. 238.25 of the statutes is repealed.

SB148,522 Section 522. 238.26 of the statutes is repealed.

SB148,523 Section 523. Subchapter II (title) of chapter 238 [precedes 238.30] of the statutes is renumbered subchapter III (title) of chapter 235 [precedes 235.30].

SB148,524 Section 524. 238.30 of the statutes is renumbered 235.30, and 235.30 (intro.), (2g), (2m) (b) (intro.) and (7) (b) 1. and 2., (c) and (d), as renumbered, are amended to read:

SB148,186,7 235.30 Definitions. (intro.) In this section and ss. 238.301 to 238.395 235.301 to 235.395 and 238.398 235.398:

SB148,186,8 (2g) "Eligible activity" means an activity described under s. 238.302 235.302.

SB148,186,12 (2m) (b) (intro.) The corporation authority may grant exceptions to the requirement under par. (a) 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:

SB148,186,18 (7) (b) 1. Except as provided in subd. 2., in s. 238.395 235.395, "tax benefits" means the development zones investment credit under ss. 71.07 (2di), 71.28 (1di), and 71.47 (1di) and the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636. With respect to the development opportunity zones under s. 238.395 235.395 (1) (e) and (f), "tax benefits" also means the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).

SB148,186,22 2. With respect to the development opportunity zones under s. 238.395 235.395 (1) (g), (h), and (i), "tax benefits" means the development zone credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636 and the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).

SB148,186,25 (c) In s. 238.398 235.398, "tax benefits" means the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm) and the development zones credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.

SB148,187,3 (d) In ss. 238.301 to 238.306 235.301 to 235.306, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

SB148,525 Section 525. 238.301 of the statutes is renumbered 235.301, and 235.301 (1) (intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are amended to read:

SB148,187,9 235.301 (1) Application. (intro.) Any person may apply to the corporation authority on a form prepared by the corporation authority for certification under this section. The application shall include all of the following:

SB148,187,11 (e) Other information required by the corporation authority or the department of revenue.

SB148,187,15 (2) (a) The corporation authority may certify a person who submits an application under sub. (1) if, after conducting an investigation, the corporation authority determines that the person is conducting or intends to conduct at least one eligible activity.

SB148,187,17 (b) The corporation authority shall provide a person certified under this section and the department of revenue with a copy of the certification.

SB148,187,20 (3) Contract. (intro.) A person certified under this section shall enter into a written contract with the corporation authority. The contract shall include provisions that detail all of the following:

SB148,187,23 (b) Whether any of the eligible activities will occur in an economically distressed area, as designated by the corporation authority under s. 238.304 235.304 (1).

SB148,187,25 (c) Whether any of the eligible activities will benefit members of a targeted group, as determined by the corporation authority under s. 238.304 235.304 (2).

SB148,188,3 (d) A compliance schedule that includes a sequence of anticipated actions to be taken or goals to be achieved by the person before the person may receive tax benefits under s. 238.303 235.303.

SB148,188,5 (f) If feasible, a determination of the tax benefits the person will be authorized to claim under s. 238.303 235.303 (2) if the person fulfills the terms of the contract.

SB148,526 Section 526. 238.302 of the statutes is renumbered 235.302, and 235.302 (intro.), (1), (2) and (3), as renumbered, are amended to read:

SB148,188,9 235.302 Eligible activities. (intro.) A person who conducts or proposes to conduct any of the following may be certified under s. 238.301 235.301 (2):

SB148,188,12 (1) A project that creates and maintains for a period of time established by the corporation by rule authority full-time jobs in addition to any existing full-time jobs provided by the person.

SB148,188,15 (2) A project that involves a significant investment of capital, as defined by the corporation by rule authority under s. 238.306 235.306 (2) (b), by the person in new equipment, machinery, real property, or depreciable personal property.

SB148,188,19 (3) A project that involves significant investments in the training or reeducation of employees, as defined by the corporation by rule authority under s. 238.306 235.306 (2) (c), by the person for the purpose of improving the productivity or competitiveness of the business of the person.

SB148,527 Section 527. 238.303 of the statutes is renumbered 235.303, and 235.303 (1) (a), (am) and (b), (2) and (3), as renumbered, are amended to read:

SB148,189,3 235.303 (1) (a) Except as provided in pars. (am) and (b), and subject to a reallocation by the corporation pursuant to rules adopted authority under s. 238.15 235.15 (3) (d), the total tax benefits available to be allocated by the corporation authority under ss. 238.301 to 238.306 235.301 to 235.306 may not exceed the sum of the tax benefits remaining to be allocated under s. 560.71 to 560.785, 2009 stats., s. 560.797, 2009 stats., s. 560.798, 2009 stats., s. 560.7995, 2009 stats., and s. 560.96, 2009 stats., on March 6, 2009, plus $100,000,000.

SB148,189,17 (am) The corporation authority may initially allocate only $61,000,000 of the additional $100,000,000 in tax benefits specified in par. (a). Before the corporation authority allocates the remaining $39,000,000 in tax benefits specified in par. (a), the corporation authority shall submit its plan for such allocation, including a report that describes the intended use of the tax benefits, to the joint committee on finance. If the cochairpersons of the committee do not notify the corporation authority within 14 working days after the date of the corporation's authority's submittal that the committee has scheduled a meeting for the purpose of reviewing the plan, the plan may be implemented and the remaining amount may be allocated as proposed by the corporation authority. If, within 14 working days after the date of the corporation's authority's submittal, the cochairpersons of the committee notify the corporation authority that the committee has scheduled a meeting for the purpose of reviewing the proposed plan, the plan may be implemented and the remaining amount allocated only upon approval of the committee.

SB148,189,23 (b) The corporation authority may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a). The corporation authority shall submit with its request a justification for seeking an increase under this paragraph. The joint committee on finance, following its review, may approve or disapprove an increase in the total tax benefits available to be allocated under ss. 238.301 to 238.306 235.301 to 235.306.

SB148,190,4 (2) Authority to claim tax benefits. The corporation authority may authorize a person certified under s. 238.301 235.301 (2) to claim tax benefits only after the person has submitted a report to the corporation authority that documents to the satisfaction of the corporation authority that the person has complied with the terms of the contract under s. 238.301 235.301 (3) and the requirements of any applicable rules policies and procedures adopted under s. 238.306 235.306 (2).

SB148,190,7 (3) Notice of eligibility. The corporation authority shall provide to the person and to the department of revenue a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.

SB148,528 Section 528. 238.304 of the statutes is renumbered 235.304, and 235.304 (intro.) and (1), as renumbered, are amended to read:

SB148,190,14 235.304 Eligible activities in economically distressed areas and benefiting members of targeted groups. (intro.) The corporation authority may authorize a person certified under s. 238.301 235.301 (2) to claim additional tax benefits under s. 238.303 235.303 if, after conducting an investigation, the corporation authority determines any of the following:

SB148,190,18 (1) The person conducts at least one eligible activity in an area designated by the corporation authority as economically distressed. In designating an area as economically distressed under this subsection, the corporation authority shall follow the methodology established by rule under s. 238.306 235.306 (2) (e).

SB148,529 Section 529. 238.3045 of the statutes is renumbered 235.3045, and 235.3045 (1) (title), (a), (b) (intro.) and 4. and (c) 1., (2) (a) and (b), (3) and (4) (a) and (b), as renumbered, are amended to read:

SB148,191,7 235.3045 (1) (title) Application and corporation approval. (a) An applicant for certification for tax benefits under s. 238.301 235.301 may submit with its application under s. 238.301 235.301 (1) an application to the corporation authority on a form prescribed by the corporation authority to transfer those tax benefits to another person under this section. The application shall include the name, address, and tax identification number of the person to whom the applicant intends to transfer the tax benefits and any other information the corporation authority requires. The corporation authority shall notify the applicant of the corporation's authority's determination concerning the transfer of tax benefits when the corporation authority notifies the applicant of the corporation's authority's certification determination under s. 238.301 235.301.

SB148,191,11 (b) (intro.) The corporation authority may approve the transfer of tax benefits under this section if the corporation authority certifies the applicant under par. (a) for tax benefits under s. 238.301 235.301 and finds that the applicant meets at least one of the following conditions:

SB148,191,14 4. Intends to expand its operations in this state, and that expansion will result in the applicant making a significant capital investment in property located in this state, as determined by the corporation authority.

SB148,191,23 (c) 1. Subject to subd. 2., a person that receives an approval under par. (b) shall transfer tax benefits in accordance with the terms of the application under par. (a) after the corporation authority authorizes the person to claim tax benefits under s. 238.303 235.303 (2) and provides the notice of eligibility under s. 238.303 235.303 (3). The notice of eligibility shall contain all relevant information concerning a transfer of tax benefits under this section. The person to whom tax benefits are transferred may carry forward, beginning on the date of the notice of eligibility, any unused amount of the value of those tax benefits as provided under the appropriate provision in ch. 71 or in s. 76.636.

SB148,192,3 (2) (a) If the corporation authority revokes a person's certification for tax benefits under s. 238.305 235.305, and, at the time of revocation, that person has transferred those tax benefits under this section, that person shall be liable for the full value of the tax benefits, and the person to whom the tax benefits were transferred may not claim any tax benefits that were not claimed prior to revocation.

SB148,192,6 (b) The corporation authority shall notify the department of revenue of a revocation of tax benefits subject to par. (a), including the value of the tax benefits for which the person is liable.

SB148,192,9 (3) Annual report. Annually, the corporation authority shall submit a report to the joint committee on finance that provides a detailed assessment of the progress to date of the program under this section.

SB148,192,13 (4) (a) Except as provided in par. (b), the corporation authority may not authorize the transfer of tax benefits under this section that total more than $15,000,000, and the corporation authority may not authorize the transfer of tax benefits after 36 months after April 4, 2014.

SB148,193,9 (b) Upon expiration of the 36-month period under par. (a), the corporation authority may continue to authorize the transfer of tax benefits under this section for up to an additional 36 months, and the corporation authority may authorize the transfer of up to an additional $15,000,000 in tax benefits, if the corporation authority determines that a continuation of the program under this section will promote significant economic development in this state. Before the corporation authority authorizes the transfer of tax benefits under this paragraph, the chief executive officer of the corporation authority shall notify the joint committee on finance in writing that the corporation authority intends to continue authorizing the transfer of tax benefits under this section. That notice shall state the reasons supporting the corporation's authority's determination that the transfer of additional tax benefits will promote significant economic development in this state. If, within 14 working days after the date of that notice, the cochairpersons of the committee do not notify the corporation authority that the committee has scheduled a meeting to review the corporation's authority's proposed continuation of the program, the corporation authority may proceed to authorize the transfer of additional tax benefits under this section. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the corporation authority that the committee has scheduled a meeting to review the proposed continuation of the program, the corporation authority may proceed to authorize the transfer of additional tax benefits only upon approval of the committee.

SB148,530 Section 530. 238.305 of the statutes is renumbered 235.305, and 235.305 (intro.), (1) and (2), as renumbered, are amended to read:

SB148,193,13 235.305 Revocation of certification. (intro.) The corporation authority shall revoke the certification of a person who does any of the following:

SB148,193,15 (1) Supplies false or misleading information to obtain certification under s. 238.301 235.301 (2).

SB148,193,17 (2) Supplies false or misleading information to obtain tax benefits under s. 238.303 235.303.

SB148,531 Section 531. 238.306 of the statutes is renumbered 235.306, and 235.306 (intro.), (1) (a) and (b), (2) (intro.), (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3), as renumbered, are amended to read:

SB148,193,22 235.306 Responsibilities of the corporation authority. (intro.) The corporation authority shall do all of the following:

SB148,193,25 (1) (a) Annually verify information submitted to the department of revenue under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under s. 238.301 235.301 (2) and eligible to receive tax benefits under s. 238.303 235.303.

SB148,194,2 (b) Notify and obtain written approval from the chief executive officer of the corporation authority for any certification under sub. (2) (j).

SB148,194,4 (2) Rules Policies and procedures. (intro.) Establish by rule policies and procedures all of the following:

SB148,194,8 (a) A schedule of hourly wage ranges to be paid, and health insurance benefits to be provided, to an employee by a person certified under s. 238.301 235.301 (2) and the corresponding per employee tax benefit for which a person certified under s. 238.301 235.301 (2) may be eligible.

SB148,194,14 (b) A definition of "significant investment of capital" for purposes of s. 238.302 235.302 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts a project described in s. 238.302 235.302 (2) may be eligible. The corporation authority shall include in the definition required under this paragraph a schedule of investments that takes into consideration the size or nature of the business.

SB148,194,18 (c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 238.302 235.302 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts a project under s. 238.302 235.302 (3) may be eligible.

SB148,194,21 (d) A schedule of tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts a project that will result in the location or retention of a person's corporate headquarters in Wisconsin may be eligible.

SB148,194,25 (e) (intro.) The methodology for designating an area as economically distressed under s. 238.304 235.304 (1). The methodology under this paragraph shall require the corporation authority to consider the most current data available for the area and for the state on the following indicators:

SB148,195,3 (f) A schedule of additional tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts an eligible activity described under s. 238.304 235.304 may be eligible.