SB468: Bill Text

SB468,124,3 (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 department 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 department may charge any person selling or otherwise transferring a credit under this paragraph a fee of up to 5 percent of the credit amount sold or transferred.

SB468,124,6 (f) 1. Beginning with December 31, 2014, tax credits that the corporation department has not allocated under this section on or before December 31 of each year may not be allocated after that date.

SB468,377 Section 377. 238.16 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.16, and 555.16 (1) (c) 2. (intro.), (2) (intro.) and (b), (3), (4) (b) 1. (intro.) and 2. and (c), (5) (title), (c), (e) and (f) (intro.) and 1. (intro.) and (6), as renumbered, are amended to read:

SB468,124,14 555.16 (1) (c) 2. (intro.) The corporation department 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:

SB468,124,16 (2) (intro.) The corporation department may certify a person to receive tax benefits under this section if all of the following apply:

SB468,124,18 (b) The person applies under this section and enters into a contract with the corporation department.

SB468,124,25 (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 department under its policies and procedures rules, and one of the following applies:

SB468,125,5 (4) (b) 1. (intro.) The corporation department 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:

SB468,125,8 2. The corporation department may award to a person certified under sub. (2) tax benefits in an amount to be determined by the corporation department for costs incurred by the person to undertake the training activities described in sub. (3) (c).

SB468,125,12 (c) Subject to a reallocation by the corporation department pursuant to policies and procedures rules adopted under s. 238.15 555.15 (3) (d), the corporation department may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

SB468,125,13 (5) (title) Duties of the corporation department.

SB468,125,16 (c) The corporation department 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).

SB468,125,19 (e) The corporation department shall annually verify the information submitted to the corporation department by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

SB468,125,22 (f) (intro.) The corporation department shall adopt policies and procedures promulgate rules for the implementation and operation of this section, including policies and procedures rules relating to the following:

SB468,125,25 1. (intro.) The definitions of a tier I county or municipality and a tier II county or municipality. The corporation department may consider all of the following information when establishing the definitions required under this subdivision:

SB468,126,6 (6) Sunset. No tax benefits may be awarded under this section after December 31, 2015, unless the tax benefits were allocated to a taxpayer by the corporation Wisconsin Economic Development Corporation under s. 238.16, 2013 stats., in a contract that the corporation Wisconsin Economic Development Corporation executed before that date or in a letter of intent to enter into such a contract that the corporation issued before that date.

SB468,378 Section 378. 238.17 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.17 and amended to read:

SB468,126,14 555.17 Historic rehabilitation tax credit. For taxable years beginning after December 31, 2013, the corporation department may certify a person to claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6), if the corporation department 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.

SB468,379 Section 379. 238.23 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.23, and 555.23 (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:

SB468,126,21 555.23 (2) (a) Except as provided in par. (c), the corporation department 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 department under sub. (3) is eligible for a tax credit as provided in sub. (3).

SB468,127,6 (b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the corporation department first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the corporation department may allocate the amount of unallocated airport development zone tax credits, as provided under s. 238.3995 555.3995 (3) (b), to technology zones for which the $5,000,000 maximum allocation is insufficient. The corporation department 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.

SB468,127,9 (3) (a) (intro.) Except as provided in par. (e), the corporation department may certify for tax credits in a technology zone a business that satisfies all of the following requirements:

SB468,127,11 (b) (intro.) In determining whether to certify a business under this subsection, the corporation department shall consider all of the following:

SB468,127,19 (c) When the corporation department certifies a business under this subsection, the corporation department 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 department 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 department under par. (d) and sub. (5) (e), may claim a tax credit for up to 5 years.

SB468,128,2 (d) The corporation department 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.

SB468,128,4 (4) (a) (intro.) The corporation department shall notify the department of revenue of all the following:

SB468,128,7 (b) The corporation department shall annually verify information submitted to the corporation department under ss. 71.07 (2dm), (2dx), and (3g), 71.28 (1dm), (1dx), and (3g), and 71.47 (1dm), (1dx), and (3g).

SB468,128,9 (5) (intro.) The corporation department shall adopt rules for the operation of this section, including rules related to all the following:

SB468,128,13 (e) Standards for extending a business's certification, including what measures, in addition to job creation, the corporation department will use to determine the growth of a specific business and how the corporation department will establish baselines against which to measure growth.

SB468,128,15 (g) The exchange of information between the corporation department and the department of revenue.

SB468,380 Section 380. 238.25 of the statutes is renumbered 555.25 and amended to read:

SB468,128,22 555.25 Assistance to loan recipients. The corporation department shall assist new businesses and small businesses receiving the assistance of the Wisconsin Housing and Economic Development Authority in locating sources of venture capital and in obtaining the state and federal licenses and permits necessary for business operations.

SB468,381 Section 381. 238.26 of the statutes is renumbered 555.26 and amended to read:

SB468,129,4 555.26 Report to investment board. No later than September 30 of each even-numbered year, the corporation department shall submit to the investment board a report describing the types of investments in businesses in this state that will have the greatest likelihood of enhancing economic development in this state.

SB468,382 Section 382. Subchapter II (title) of chapter 238 [precedes 238.30] of the statutes is renumbered Subchapter II (title) of chapter 555 [precedes 555.30].

SB468,383 Section 383. 238.30 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.30, and 555.30 (intro.), (2g), (2m) (b) (intro.) and (7) (b) 1. and 2., (c), (d) and (e), as renumbered, are amended to read:

SB468,129,11 555.30 Definitions. (intro.) In this section and ss. 238.301 555.301 to 238.395 555.395 and 238.398 555.398:

SB468,129,12 (2g) "Eligible activity" means an activity described under s. 238.302 555.302.

SB468,129,16 (2m) (b) (intro.) The corporation department 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:

SB468,129,21 (7) (b) 1. Except as provided in subd. 2., in s. 238.395 555.395, "tax benefits" means 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. 238.395 555.395 (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).

SB468,129,25 2. With respect to the development opportunity zones under s. 238.395 555.395 (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).

SB468,130,3 (c) In s. 238.398 555.398, "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.

SB468,130,6 (d) In ss. 238.301 555.301 to 238.306 555.306, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

SB468,130,8 (e) In s. 238.308 555.308, "tax benefits" means the business development tax credit under ss. 71.07 (3y), 71.28 (3y), and 71.47 (3y).

SB468,384 Section 384. 238.301 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.301, and 555.301 (1) (intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are amended to read:

SB468,130,14 555.301 (1) Application. (intro.) Any person may apply to the corporation department on a form prepared by the corporation department for certification under this section. The application shall include all of the following:

SB468,130,16 (e) Other information required by the corporation department or the department of revenue.

SB468,130,20 (2) (a) The corporation department may certify a person who submits an application under sub. (1) if, after conducting an investigation, the corporation department determines that the person is conducting or intends to conduct at least one eligible activity.

SB468,130,22 (b) The corporation department shall provide a person certified under this section with a copy of the certification.

SB468,130,25 (3) Contract. (intro.) A person certified under this section shall enter into a written contract with the corporation department. The contract shall include provisions that detail all of the following:

SB468,131,3 (b) Whether any of the eligible activities will occur in an economically distressed area, as designated by the corporation department under s. 238.304 555.304 (1).

SB468,131,5 (c) Whether any of the eligible activities will benefit members of a targeted group, as determined by the corporation department under s. 238.304 555.304 (2).

SB468,131,8 (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. 238.303 555.303.

SB468,131,10 (f) If feasible, a determination of the tax benefits the person will be authorized to claim under s. 238.303 555.303 (2) if the person fulfills the terms of the contract.

SB468,385 Section 385. 238.302 of the statutes is renumbered 555.302, and 555.302 (intro.), (1), (2) and (3), as renumbered, are amended to read:

SB468,131,14 555.302 Eligible activities. (intro.) A person who conducts or proposes to conduct any of the following may be certified under s. 238.301 555.301 (2):

SB468,131,17 (1) Job creation project. A project that creates and maintains for a period of time established by the corporation department by rule full-time jobs in addition to any existing full-time jobs provided by the person.

SB468,131,21 (2) Capital investment project. A project that involves a significant investment of capital, as defined by the corporation department by rule under s. 238.306 555.306 (2) (b), by the person in new equipment, machinery, real property, or depreciable personal property.

SB468,131,25 (3) Employee training project. A project that involves significant investments in the training or reeducation of employees, as defined by the corporation department by rule under s. 238.306 555.306 (2) (c), by the person for the purpose of improving the productivity or competitiveness of the business of the person.

SB468,386 Section 386. 238.303 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.303, and 555.303 (1) (a), (am) and (b), (2), (3) and (4), as renumbered, are amended to read:

SB468,132,9 555.303 (1) (a) Except as provided in pars. (am) and (b), the total tax benefits available to be allocated by the corporation department under ss. 238.301 555.301 to 238.306 555.306 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.

SB468,132,23 (am) The corporation department may initially allocate only $61,000,000 of the additional $100,000,000 in tax benefits specified in par. (a). Before the corporation department allocates the remaining $39,000,000 in tax benefits specified in par. (a), the corporation department 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 department within 14 working days after the date of the corporation's department'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 department. If, within 14 working days after the date of the corporation's department's submittal, the cochairpersons of the committee notify the corporation department 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.

SB468,133,4 (b) The corporation department may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a). The corporation department 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. 238.301 555.301 to 238.306 555.306.

SB468,133,10 (2) Authority to claim tax benefits. The corporation department may authorize a person certified under s. 238.301 555.301 (2) to claim tax benefits only after the person has submitted a report to the corporation department that documents to the satisfaction of the corporation department that the person has complied with the terms of the contract under s. 238.301 555.301 (3) and the requirements of any applicable rules adopted under s. 238.306 555.306 (2).

SB468,133,13 (3) Notice of eligibility. The corporation department shall provide to the person a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.

SB468,133,20 (4) Sunset. No tax benefits may be awarded under ss. 238.301 555.301 to 238.306 555.306 after December 31, 2015, unless the tax benefits were allocated to a taxpayer by the corporation Wisconsin Economic Development Corporation under ss. 238.301 to 238.306, 2013 stats., in a contract that the corporation Wisconsin Economic Development Corporation executed before that date or in a letter of intent to enter into such a contract that the corporation Wisconsin Economic Development Corporation issued before that date.

SB468,387 Section 387. 238.304 of the statutes is renumbered 555.304, and 555.304 (intro.) and (1), as renumbered, are amended to read:

SB468,134,2 555.304 Eligible activities in economically distressed areas and benefiting members of targeted groups. (intro.) The corporation department may authorize a person certified under s. 238.301 555.301 (2) to claim additional tax benefits under s. 238.303 555.303 if, after conducting an investigation, the corporation department determines any of the following:

SB468,134,6 (1) The person conducts at least one eligible activity in an area designated by the corporation department as economically distressed. In designating an area as economically distressed under this subsection, the corporation department shall follow the methodology established by rule under s. 238.306 555.306 (2) (e).

SB468,388 Section 388. 238.3045 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.3045, and 555.3045 (1) (title), (a), (b) (intro.) and 4. and (c) 1., (2) (a), (3) and (4) (a) and (b), as renumbered, are amended to read:

SB468,134,20 555.3045 (1) (title) Application and corporation department approval. (a) An applicant for certification for tax benefits under s. 238.301 555.301 may submit with its application under s. 238.301 555.301 (1) an application to the corporation department on a form prescribed by the corporation department 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 department requires. The corporation department shall notify the applicant of the corporation's department's determination concerning the transfer of tax benefits when the corporation department notifies the applicant of the corporation's department's certification determination under s. 238.301 555.301.

SB468,134,24 (b) (intro.) The corporation department may approve the transfer of tax benefits under this section if the corporation department certifies the applicant under par. (a) for tax benefits under s. 238.301 555.301 and finds that the applicant meets at least one of the following conditions:

SB468,135,3 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 department.

SB468,135,12 (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 department authorizes the person to claim tax benefits under s. 238.303 555.303 (2) and provides the notice of eligibility under s. 238.303 555.303 (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.

SB468,135,17 (2) (a) If the corporation department revokes a person's certification for tax benefits under s. 238.305 555.305, 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.

SB468,135,20 (3) Annual report. Annually, the corporation department 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.

SB468,135,24 (4) (a) Except as provided in par. (b), the corporation department may not authorize the transfer of tax benefits under this section that total more than $15,000,000, and the corporation department may not authorize the transfer of tax benefits after 36 months after April 4, 2014.

SB468,136,21 (b) Upon expiration of the 36-month period under par. (a), the corporation department may continue to authorize the transfer of tax benefits under this section for up to an additional 36 months, and the corporation department may authorize the transfer of up to an additional $15,000,000 in tax benefits, if the corporation department determines that a continuation of the program under this section will promote significant economic development in this state. Before the corporation department authorizes the transfer of tax benefits under this paragraph, the chief executive officer of the corporation secretary shall notify the joint committee on finance in writing that the corporation department intends to continue authorizing the transfer of tax benefits under this section. That notice shall state the reasons supporting the corporation's department'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 department that the committee has scheduled a meeting to review the corporation's department's proposed continuation of the program, the corporation department 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 department that the committee has scheduled a meeting to review the proposed continuation of the program, the corporation department may proceed to authorize the transfer of additional tax benefits only upon approval of the committee.

SB468,389 Section 389. 238.305 of the statutes is renumbered 555.305, and 555.305 (intro.), (1) and (2), as renumbered, are amended to read:

SB468,136,25 555.305 Revocation of certification. (intro.) The corporation department shall revoke the certification of a person who does any of the following:

SB468,137,2 (1) Supplies false or misleading information to obtain certification under s. 238.301 555.301 (2).

SB468,137,4 (2) Supplies false or misleading information to obtain tax benefits under s. 238.303 555.303.

SB468,390 Section 390. 238.306 of the statutes is renumbered 555.306, and 555.306 (intro.), (1) (a) and (b), (2) (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3), as renumbered, are amended to read:

SB468,137,9 555.306 Responsibilities of the corporation department. (intro.) The corporation department shall do all of the following:

SB468,137,12 (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. 238.301 555.301 (2) and eligible to receive tax benefits under s. 238.303 555.303.

SB468,137,14 (b) Notify and obtain written approval from the chief executive officer of the corporation secretary for any certification under sub. (2) (j).

SB468,137,18 (2) (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. 238.301 555.301 (2) and the corresponding per employee tax benefit for which a person certified under s. 238.301 555.301 (2) may be eligible.

SB468,137,24 (b) A definition of "significant investment of capital" for purposes of s. 238.302 555.302 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 555.301 (2) and who conducts a project described in s. 238.302 555.302 (2) may be eligible. The corporation department shall include in the definition required under this paragraph a schedule of investments that takes into consideration the size or nature of the business.

SB468,138,4 (c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 238.302 555.302 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 555.301 (2) and who conducts a project under s. 238.302 555.302 (3) may be eligible.