SB21: Bill Text

SB21,1474,7 235.12 Repayment of grants, loans, and tax benefits. (1) In this section, "tax benefits" means the credits under ss. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3t), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t), and 76.636.

SB21,1474,15 (2) The corporation authority may not award a grant or loan under this chapter to a person or certify a person to receive tax benefits unless the corporation authority enters into an agreement with the person that requires the person to repay the grant, loan, or tax benefits if, within 5 years after receiving the grant or loan or being certified to receive tax benefits, the person ceases to conduct in this state the economic activity for which the person received the grant or loan or for which the person was certified to receive tax benefits and commences substantially the same economic activity outside this state.

SB21,3972 Section 3972. 238.125 of the statutes is repealed.

SB21,3973 Section 3973. 238.127 of the statutes is renumbered 235.127, and 235.127 (2) (intro.), (c) (intro.), (e), (h) and (j), as renumbered, are amended to read:

SB21,1474,24 235.127 (2) (intro.) The corporation authority shall establish and administer a state main street program to coordinate state and local participation in programs offered by the national main street center, created by the national trust for historic preservation, to assist municipalities in planning, managing and implementing programs for the revitalization of business areas. The corporation authority shall do all of the following:

SB21,1475,3 (c) (intro.) With help from interested individuals and organizations, develop a plan describing the objectives of the state main street program and the methods by which the corporation authority shall:

SB21,1475,12 (e) Annually select, upon application, up to 5 municipalities to participate in the state main street program. The program for each municipality shall conclude after 3 years, except that the program for each municipality selected after July 29, 1995, shall conclude after 5 years. The corporation authority shall select program participants representing various geographical regions and populations. A municipality may apply to participate, and the corporation authority may select a municipality for participation, more than one time. In selecting a municipality, however, the corporation authority may give priority to those municipalities that have not previously participated.

SB21,1475,16 (h) Provide training, technical assistance and information on the revitalization of business areas to municipalities which do not participate in the state main street program. The corporation authority may charge reasonable fees for the services and information provided under this paragraph.

SB21,1475,18 (j) The corporation authority shall expend at least $250,000 annually on the state main street program.

SB21,3974 Section 3974 . 238.13 of the statutes, as affected by 2015 Wisconsin Act .... (this act), is renumbered 235.13, and 235.13 (2) (a) (intro.), (3) (intro.) and (f) and (5), as renumbered, are amended to read:

SB21,1475,23 235.13 (2) (a) (intro.) The corporation authority may make a grant to a person if all of the following apply:

SB21,1475,25 (3) (intro.) The corporation authority may consider the following criteria in making awards under this section:

SB21,1476,2 (f) Any other factors considered by the corporation to be authority considers relevant to assessing the viability and feasibility of the project.

SB21,1476,5 (5) Before the corporation authority awards a grant under this section, the corporation authority shall consider the recommendations of the department of natural resources.

SB21,3975 Section 3975. 238.13 (2) (b) 2. of the statutes is repealed.

SB21,3976 Section 3976. 238.13 (2) (b) 3. of the statutes is created to read:

SB21,1476,9 238.13 (2) (b) 3. The recipient of a grant under this section shall contribute to the project an amount that is equal to at least 50 percent of the amount of the grant.

SB21,3977 Section 3977. 238.13 (5) of the statutes is amended to read:

SB21,1476,13 238.13 (5) Before the corporation awards a grant under this section, the corporation shall consider the recommendations of the department of administration and the department of natural resources.

SB21,3978 Section 3978. 238.133 of the statutes is renumbered 235.133, and 235.133 (2) (title), (a), (b), (c) and (d), (3) (intro.), (4), (5) (intro.) and (c), (6) and (7), as renumbered, are amended to read:

SB21,1476,17 235.133 (2) (title) Duties of the corporation authority.

SB21,1476,21 (a) The corporation authority shall administer a program to award brownfield site assessment grants from the appropriation under s. 20.192 (1) 20.885 (3) (s) to local governmental units for the purposes of conducting any of the eligible activities under sub. (3).

SB21,1476,24 (b) The corporation authority may not award a grant to a local governmental unit under this section if that local governmental unit caused the environmental contamination that is the basis for the grant request.

SB21,1477,4 (c) The corporation authority may only award grants under this section if the person that caused the environmental contamination that is the basis for the grant request is unknown, cannot be located or is financially unable to pay the cost of the eligible activities.

SB21,1477,8 (d) The corporation authority shall establish criteria as necessary to administer the program. The corporation authority may limit the total amount of funds that may be used to cover the costs of each category of eligible activity described in sub. (3).

SB21,1477,10 (3) Eligible activities. (intro.) The corporation authority may award grants to local governmental units to cover the costs of the following activities:

SB21,1477,13 (4) Application for grant. The applicant shall submit an application on a form prescribed by the corporation authority and shall include any information that the corporation authority finds necessary to calculate the amount of a grant.

SB21,1477,15 (5) Grant criteria. (intro.) The corporation authority shall consider the following criteria when determining whether to award a grant:

SB21,1477,17 (c) Other criteria that the corporation authority finds necessary to calculate the amount of a grant.

SB21,1477,21 (6) Limitation of grant. The total amount of all grants awarded to a local governmental unit in a fiscal year under this section shall be limited to an amount equal to 15% of the available funds appropriated under s. 20.192 (1) 20.885 (3) (s) for the fiscal year.

SB21,1477,24 (7) Matching funds. The corporation authority may not distribute a grant unless the applicant contributes matching funds equal to 20% of the grant. Matching funds may be in the form of cash or in-kind contribution or both.

SB21,3979 Section 3979. 238.135 of the statutes is renumbered 235.135 and amended to read:

SB21,1478,7 235.135 Grants to regional economic development organizations. The corporation authority shall award annual grants to regional economic development organizations to fund marketing activities. The amount of each grant may not exceed $100,000 or the amount of matching funds the organization obtains from sources other than the corporation authority or the state, whichever is less.

SB21,3980 Section 3980 . 238.15 of the statutes, as affected by 2015 Wisconsin Act .... (this act), is renumbered 235.15, and 235.15 (1) (intro.) and (m) 1. (intro.) and c., (2) and (3) (a), (b), (d) (intro.), 1. and 2. a. and b., (dm) and (e), as renumbered, are amended to read:

SB21,1478,20 235.15 (1) Angel investment tax credits. (intro.) The corporation authority shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the corporation authority in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation authority may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). Except as provided in policies and procedures under sub. (3) (dm), the corporation authority may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB21,1479,3 (m) 1. (intro.) It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07 (5d) and agrees to pay the corporation authority a penalty, in an amount determined under subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, except as provided in policies and procedures under sub. (3) (dm), a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

SB21,1479,5 c. The activities of the business's headquarters, as determined by the corporation authority.

SB21,1479,19 (2) Early stage seed investment tax credits. The corporation authority 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 authority. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the corporation authority 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 authority 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 authority may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

SB21,1479,23 (3) (a) List of certified businesses and investment fund managers. The corporation authority 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 authority's Internet Web site.

SB21,1480,3 (b) Notification of department of revenue. The corporation authority 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.

SB21,1481,10 (d) Rules Administration. (intro.) The corporation authority, in consultation with the department of revenue, shall adopt rules establish policies and procedures to administer this section. The rules and 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 and 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 is $30,000,000 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 policies and procedures shall also provide that, for calendar years beginning after December 31, 2007, a person who receives a credit under ss. s. 71.07 (5b) and or (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 authority, 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 authority, occurs during the 3-year period. The rules policies and procedures shall permit the corporation authority to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under s. 238.16 235.16 (1) (d), if all of the following apply:

SB21,1481,12 1. The corporation authority notifies the joint committee on finance in writing of its proposed reallocation.

SB21,1481,16 2. a. The cochairpersons of the joint committee on finance fail to notify the corporation authority, within 14 working days after the date of the corporation's authority's notification under subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.

SB21,1481,18 b. The cochairpersons of the joint committee on finance notify the corporation authority that the committee has approved the proposed reallocation.

SB21,1481,25 (dm) The corporation's authority's policies and procedures under this subsection shall permit the corporation authority to waive one or more of the requirements under sub. (1) (a), (b), (h), and (m) 1. based on standards the corporation authority establishes in the policies and procedures. The corporation authority may not waive a requirement under sub. (1) (a), (b), (h), or (m) 1. unless the board approves the standards in the policies and procedures and the waiver complies with those standards.

SB21,1482,13 (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b) or (5d), 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 was certified to claim the credit after December 31, 2014 and if the person receives prior authorization from the investment fund manager, for a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638, and the investment fund manager, or the claimant under s. 71.07 (5d) for the sale or other transfer of a credit under s. 71.07 (5d), notifies the corporation authority 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 authority may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 5 percent of the credit amount sold or transferred.

SB21,3981 Section 3981. 238.15 (1) (intro.) of the statutes is amended to read:

SB21,1482,23 238.15 (1) Angel investment tax credits. (intro.) The corporation shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the corporation in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). The Except as provided in policies and procedures under sub. (3) (dm), the corporation may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB21,3982 Section 3982. 238.15 (1) (f) 1. b. of the statutes is amended to read:

SB21,1483,5 238.15 (1) (f) 1. b. Processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, any other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary differentiating technology.

SB21,3983 Section 3983. 238.15 (1) (f) 1. c. of the statutes is amended to read:

SB21,1483,8 238.15 (1) (f) 1. c. Services that are enabled by applying proprietary differentiating technology.

SB21,3984 Section 3984. 238.15 (1) (f) 2. of the statutes is amended to read:

SB21,1483,13 238.15 (1) (f) 2. It is undertaking pre-commercialization activity related to proprietary differentiating technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary differentiating technology.

SB21,3985 Section 3985. 238.15 (1) (f) 3. of the statutes is created to read:

SB21,1483,16 238.15 (1) (f) 3. It is a technology-based physician and health care consulting business.

SB21,3986 Section 3986. 238.15 (1) (f) 4. of the statutes is created to read:

SB21,1483,19 238.15 (1) (f) 4. It is a retailer for whom at least 51 percent of its annual sales originate on the Internet.

SB21,3987 Section 3987. 238.15 (1) (g) of the statutes is amended to read:

SB21,1484,3 238.15 (1) (g) It is not primarily engaged in real estate development,; insurance,; banking,; lending,; lobbying, ; political consulting,; professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, except technology-based physician or health care consultants; wholesale or retail trade, except retailers for whom at least 51 percent of annual income originates on the Internet; leisure, ; hospitality,; transportation,; or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).

SB21,3988 Section 3988. 238.15 (1) (L) of the statutes is amended to read:

SB21,1484,8 238.15 (1) (L) For taxable years beginning after December 31, 2010 and before January 1, 2015, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB21,3989 Section 3989. 238.15 (1) (Lg) of the statutes is created to read:

SB21,1484,12 238.15 (1) (Lg) For taxable years beginning after December 31, 2014, it has not received more than $12,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB21,3990 Section 3990. 238.15 (1) (m) 1. (intro.) of the statutes is amended to read:

SB21,1484,20 238.15 (1) (m) 1. (intro.) It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount determined under subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, except as provided in policies and procedures under sub. (3) (dm), a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

SB21,3991 Section 3991. 238.15 (1) (m) 3. of the statutes is created to read:

SB21,1484,25 238.15 (1) (m) 3. Subdivision 1. does not apply to a business that the corporation certified for purposes of s. 71.07 (5d) before April 20, 2012, and that, in reliance on that certification, executed a note or bond that is convertible to an equity interest.

SB21,3992 Section 3992. 238.15 (3) (dm) of the statutes is created to read:

SB21,1485,7 238.15 (3) (dm) The corporation's policies and procedures under this subsection shall permit the corporation to waive one or more of the requirements under sub. (1) (a), (b), (h), and (m) 1. based on standards the corporation establishes in the policies and procedures. The corporation may not waive a requirement under sub. (1) (a), (b), (h), or (m) 1. unless the board approves the standards in the policies and procedures and the waiver complies with those standards.

SB21,3993 Section 3993. 238.15 (3) (e) of the statutes is amended to read:

SB21,1485,21 238.15 (3) (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b) or (5d), 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 was certified to claim the credit after December 31, 2014 and if the person receives prior authorization from the investment fund manager, for a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638, and the investment fund manager then, or the claimant under s. 71.07 (5d) for the sale or other transfer of a credit under s. 71.07 (5d), 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 5 percent of the credit amount sold or transferred.

SB21,3994 Section 3994. 238.16 of the statutes, as affected by 2015 Wisconsin Act .... (this act), is renumbered 235.16, and 235.16 (1) (c) 2. (intro.), (2) (intro.) and (b), (3) (intro.), (4) (b) 1. (intro.) and 2. and (c) and (5) (title), (a), (b), (c), (d), (e) and (f) (intro.) and 1. (intro.), as renumbered, are amended to read:

SB21,1486,4 235.16 (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:

SB21,1486,6 (2) (intro.) The corporation authority may certify a person to receive tax benefits under this section if all of the following apply:

SB21,1486,8 (b) The person applies under this section and enters into a contract with the corporation authority.

SB21,1486,15 (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:

SB21,1486,20 (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:

SB21,1486,23 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).

SB21,1487,3 (c) Subject to a reallocation by the corporation authority pursuant to policies and procedures adopted under s. 238.15 235.15 (3) (d), the corporation authority may allocate up to $10,000,000 in tax benefits under this section in any calendar year.