SB468,387
21Section
387. 238.304 of the statutes is renumbered 555.304, and 555.304
22(intro.) and (1), as renumbered, are amended to read:
SB468,134,2
23555.304 Eligible activities in economically distressed areas and
24benefiting members of targeted groups. (intro.) The
corporation department 25may authorize a person certified under s.
238.301
555.301 (2) to claim additional tax
1benefits under s.
238.303 555.303 if, after conducting an investigation, the
2corporation department determines any of the following:
SB468,134,6
3(1) The person conducts at least one eligible activity in an area designated by
4the
corporation department as economically distressed. In designating an area as
5economically distressed under this subsection, the
corporation department shall
6follow the methodology established by rule under s.
238.306 555.306 (2) (e).
SB468,388
7Section
388. 238.3045 of the statutes, as affected by
2015 Wisconsin Act 55,
8is renumbered 555.3045, and 555.3045 (1) (title), (a), (b) (intro.) and 4. and (c) 1., (2)
9(a), (3) and (4) (a) and (b), as renumbered, are amended to read:
SB468,134,2010
555.3045
(1) (title)
Application and
corporation department approval. (a) An
11applicant for certification for tax benefits under s.
238.301 555.301 may submit with
12its application under s.
238.301 555.301 (1) an application to the
corporation 13department on a form prescribed by the
corporation department to transfer those tax
14benefits to another person under this section. The application shall include the
15name, address, and tax identification number of the person to whom the applicant
16intends to transfer the tax benefits and any other information the
corporation 17department requires. The
corporation
department shall notify the applicant of the
18corporation's department's determination concerning the transfer of tax benefits
19when the
corporation department notifies the applicant of the
corporation's 20department's certification determination under s.
238.301 555.301.
SB468,134,2421
(b) (intro.) The
corporation department may approve the transfer of tax
22benefits under this section if the
corporation department certifies the applicant
23under par. (a) for tax benefits under s.
238.301
555.301 and finds that the applicant
24meets at least one of the following conditions:
SB468,135,3
14. Intends to expand its operations in this state, and that expansion will result
2in the applicant making a significant capital investment in property located in this
3state, as determined by the
corporation department.
SB468,135,124
(c) 1. Subject to subd. 2., a person that receives an approval under par. (b) shall
5transfer tax benefits in accordance with the terms of the application under par. (a)
6after the
corporation department authorizes the person to claim tax benefits under
7s.
238.303 555.303 (2) and provides the notice of eligibility under s.
238.303 555.303 8(3). The notice of eligibility shall contain all relevant information concerning a
9transfer of tax benefits under this section. The person to whom tax benefits are
10transferred may carry forward, beginning on the date of the notice of eligibility, any
11unused amount of the value of those tax benefits as provided under the appropriate
12provision in ch. 71 or in s. 76.636.
SB468,135,17
13(2) (a) If the
corporation department revokes a person's certification for tax
14benefits under s.
238.305 555.305, and, at the time of revocation, that person has
15transferred those tax benefits under this section, that person shall be liable for the
16full value of the tax benefits, and the person to whom the tax benefits were
17transferred may not claim any tax benefits that were not claimed prior to revocation.
SB468,135,20
18(3) Annual report. Annually, the
corporation department shall submit a report
19to the joint committee on finance that provides a detailed assessment of the progress
20to date of the program under this section.
SB468,135,24
21(4) (a) Except as provided in par. (b), the
corporation department may not
22authorize the transfer of tax benefits under this section that total more than
23$15,000,000, and the
corporation department may not authorize the transfer of tax
24benefits after 36 months after April 4, 2014.
SB468,136,21
1(b) Upon expiration of the 36-month period under par. (a), the
corporation 2department may continue to authorize the transfer of tax benefits under this section
3for up to an additional 36 months, and the
corporation
department may authorize
4the transfer of up to an additional $15,000,000 in tax benefits, if the
corporation 5department determines that a continuation of the program under this section will
6promote significant economic development in this state. Before the
corporation 7department authorizes the transfer of tax benefits under this paragraph, the
chief
8executive officer of the corporation secretary shall notify the joint committee on
9finance in writing that the
corporation department intends to continue authorizing
10the transfer of tax benefits under this section. That notice shall state the reasons
11supporting the
corporation's department's determination that the transfer of
12additional tax benefits will promote significant economic development in this state.
13If, within 14 working days after the date of that notice, the cochairpersons of the
14committee do not notify the
corporation department that the committee has
15scheduled a meeting to review the
corporation's department's proposed continuation
16of the program, the
corporation department may proceed to authorize the transfer
17of additional tax benefits under this section. If, within 14 working days after the date
18of that notice, the cochairpersons of the committee notify the
corporation department 19that the committee has scheduled a meeting to review the proposed continuation of
20the program, the
corporation department may proceed to authorize the transfer of
21additional tax benefits only upon approval of the committee.
SB468,389
22Section
389. 238.305 of the statutes is renumbered 555.305, and 555.305
23(intro.), (1) and (2), as renumbered, are amended to read:
SB468,136,25
24555.305 Revocation of certification. (intro.) The
corporation department 25shall revoke the certification of a person who does any of the following:
SB468,137,2
1(1) Supplies false or misleading information to obtain certification under s.
2238.301 555.301 (2).
SB468,137,4
3(2) Supplies false or misleading information to obtain tax benefits under s.
4238.303 555.303.
SB468,390
5Section
390. 238.306 of the statutes is renumbered 555.306, and 555.306
6(intro.), (1) (a) and (b), (2) (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3),
7as renumbered, are amended to read:
SB468,137,9
8555.306 Responsibilities of the corporation department. (intro.) The
9corporation department shall do all of the following:
SB468,137,12
10(1) (a) Annually verify information submitted to the department of revenue
11under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under
12s.
238.301 555.301 (2) and eligible to receive tax benefits under s.
238.303 555.303.
SB468,137,1413
(b) Notify and obtain written approval from the
chief executive officer of the
14corporation secretary for any certification under sub. (2) (j).
SB468,137,18
15(2) (a) A schedule of hourly wage ranges to be paid, and health insurance
16benefits to be provided, to an employee by a person certified under s.
238.301 555.301 17(2) and the corresponding per employee tax benefit for which a person certified under
18s.
238.301 555.301 (2) may be eligible.
SB468,137,2419
(b) A definition of "significant investment of capital" for purposes of s.
238.302 20555.302 (2), together with a corresponding schedule of tax benefits for which a person
21who is certified under s.
238.301 555.301 (2) and who conducts a project described
22in s.
238.302 555.302 (2) may be eligible. The
corporation department shall include
23in the definition required under this paragraph a schedule of investments that takes
24into consideration the size or nature of the business.
SB468,138,4
1(c) A definition of "significant investments in the training or reeducation of
2employees" for purposes of s.
238.302 555.302 (3), together with a corresponding
3schedule of tax benefits for which a person who is certified under s.
238.301 555.301 4(2) and who conducts a project under s.
238.302 555.302 (3) may be eligible.
SB468,138,75
(d) A schedule of tax benefits for which a person who is certified under s.
6238.301 555.301 (2) and who conducts a project that will result in the location or
7retention of a person's corporate headquarters in Wisconsin may be eligible.
SB468,138,118
(e) (intro.) The methodology for designating an area as economically distressed
9under s.
238.304 555.304 (1). The methodology under this paragraph shall require
10the
corporation department to consider the most current data available for the area
11and for the state on the following indicators:
SB468,138,1412
(f) A schedule of additional tax benefits for which a person who is certified
13under s.
238.301 555.301 (2) and who conducts an eligible activity described under
14s.
238.304 555.304 may be eligible.
SB468,138,1715
(g) Reporting requirements, minimum benchmarks, and outcomes expected of
16a person certified under s.
238.301 555.301 (2) before that person may receive tax
17benefits under s.
238.303 555.303.
SB468,138,1918
(h) Policies, criteria, and methodology for allocating a portion of the tax benefits
19available under s.
238.303 555.303 to rural areas.
SB468,138,2120
(i) Policies, criteria, and methodology for allocating a portion of the tax benefits
21available under s.
238.303 555.303 to small businesses.
SB468,138,2222
(k) Procedures for implementing ss.
238.301 555.301 to
238.306 555.306.
SB468,139,3
23(3) Reporting. Annually, 6 months after the report has been submitted under
24s.
238.07 555.07 (2), submit to the joint legislative audit committee and to the
25appropriate standing committees of the legislature under s. 13.172 (3) a
1comprehensive report assessing the program under ss.
238.301 555.301 to
238.306 2555.306. The report under this subsection shall update the applicable information
3provided in the report under s.
238.07 555.07 (2).
SB468,391
4Section
391. 238.308 of the statutes, as created by
2015 Wisconsin Act 55, is
5renumbered 555.308, and 555.308 (2) (a) (intro.) and 2., (3), (4) (a) (intro.), 2. and 5.
6and (b) and (5) (a), (b) and (c), as renumbered, are amended to read:
SB468,139,87
555.308
(2) (a) (intro.) The
corporation department may certify a person to
8receive tax benefits under this section if all of the following apply:
SB468,139,109
2. The person applies under this section and enters into a contract with the
10corporation department.
SB468,139,16
11(3) Eligibility for tax benefits. A person is eligible to receive tax benefits if,
12in each year for which the person claims tax benefits under this section, the person
13increases net employment in this state in the person's business above the net
14employment in this state in the person's business during the year before the person
15was certified under sub. (2), as determined by the
corporation department under its
16policies and procedures rules.
SB468,139,18
17(4) (a) (intro.) The
corporation
department may award all of the following tax
18benefits to a person certified under sub. (2):
SB468,139,2219
2. In addition to any tax benefits awarded for an eligible employee under subd.
201., an amount equal to up to 5 percent of the amount of wages that the person paid
21to the eligible employee in the taxable year, if the eligible employee is employed in
22an economically distressed area, as determined by the
corporation department.
SB468,140,323
5. An amount, as determined by the
corporation department, equal to a
24percentage of the amount of wages that the person paid to an eligible employee in the
25taxable year, if the position in which the eligible employee was employed was created
1or retained in connection with the person's location or retention of the person's
2corporate headquarters in Wisconsin and the job duties associated with the eligible
3employee's position involve the performance of corporate headquarters functions.
SB468,140,74
(b) Subject to a reallocation by the
corporation
department under s.
238.15 5555.15 (3) (d), the
corporation
department may allocate up to $17,000,000 in tax
6benefits under this section in 2016 and up to $22,000,000 per year thereafter. Any
7unused allocation may be carried forward.
SB468,140,10
8(5) (a) The
corporation department may require a person to repay any tax
9benefits the person claims for a year in which the person failed to employ an eligible
10employee required by an agreement under sub. (2) (b).
SB468,140,1311
(b) The
corporation department shall annually verify the information
12submitted to it by the person claiming tax benefits under ss. 71.07 (3y), 71.28 (3y),
13and 71.47 (3y).
SB468,140,1514
(c) The
corporation department shall
adopt policies and procedures promulgate
15rules for the implementation and operation of this section.
SB468,392
16Section
392. 238.31 of the statutes is renumbered 555.31, and 555.31 (1)
17(intro.), (ac), (am), (b), (d) and (e) (intro.), 3. and 4. a. and d., (1m) (intro.) and (h), (2)
18and (3) (intro.), as renumbered, are amended to read:
SB468,140,2019
555.31
(1) (intro.) The
corporation
department may designate an area as a
20development zone if all of the following apply:
SB468,140,2221
(ac) The
corporation department has invited a local governing body to nominate
22the area under s.
238.315 555.315.
SB468,140,2423
(am) A local governing body nominates the area as described in s.
238.32 24555.32.
SB468,141,2
1(b) The
corporation department has evaluated the local governing body's
2application as described in s.
238.325 555.325.
SB468,141,33
(d) The area meets the applicable requirements under s.
238.335 555.335.
SB468,141,44
(e) (intro.) The
corporation department determines all of the following:
SB468,141,75
3. That economic development in the area is not likely to occur or continue
6without the
corporation's department's designation of the area as a development
7zone.
SB468,141,108
4. a. The unemployment rate in the area is higher than the state average for
9the 18 months immediately preceding the date on which the application under s.
10238.32 555.32 (2) or (3) was submitted to the
corporation department.
SB468,141,1411
d. In the 36 months immediately preceding the date on which the application
12under s.
238.32 555.32 (2) or (3) was submitted to the
corporation department, a
13number of workers in the area were permanently laid off by their employer or became
14unemployed as a result of a business action subject to s. 109.07 (1m).
SB468,141,16
15(1m) (intro.) In making a determination under sub. (1) (e), the
corporation 16department shall consider all of the following:
SB468,141,1717
(h) Any other factors that the
corporation department considers relevant.
SB468,141,20
18(2) In determining whether an area meets the requirements under sub. (1) (e)
19or s.
238.335 555.335, the
corporation department may rely on any data provided by
20the local governing body that the
corporation department determines is relevant.
SB468,141,21
21(3) (intro.) The
corporation department shall do all of the following:
SB468,393
22Section
393. 238.315 of the statutes is renumbered 555.315 and amended to
23read:
SB468,142,2
24555.315 Invitation to nominate area. If the
corporation department 25determines that an area has experienced or is about to experience economic distress,
1the
corporation department may invite local governing bodies in the area to
2nominate the area as a development zone.
SB468,394
3Section
394. 238.32 of the statutes is renumbered 555.32, and 555.32 (1)
4(intro.), (2) (intro.), (c), (d) and (i), (3) and (5), as renumbered, are amended to read:
SB468,142,85
555.32
(1) (intro.) A local governing body may nominate an area as a
6development zone, if the
corporation department has invited the governing body to
7nominate the area under s.
238.315 555.315 and if the governing body does all of the
8following:
SB468,142,11
9(2) (intro.) A local governing body may nominate the area as a development
10zone by submitting an application to the
corporation
department in a form prescribed
11by the
corporation department. The application shall include all of the following:
SB468,142,1312
(c) Evidence that the area meets at least 3 of the criteria under s.
238.31 555.31 13(1) (e) 4.
SB468,142,1514
(d) Evidence that the area meets the applicable requirements of s.
238.335 15555.335.
SB468,142,1616
(i) Any other information required by the
corporation
department.
SB468,142,19
17(3) Two or more local governing bodies may submit a joint application
18nominating an area as a development zone, subject to s.
238.335 555.335 (2), if each
19local governing body complies with subs. (1) and (2).
SB468,142,22
20(5) The
corporation department may permit a local governing body to revise an
21application that the
corporation department determines is inadequate or
22incomplete.
SB468,395
23Section
395. 238.325 of the statutes is renumbered 555.325 and amended to
24read:
SB468,143,3
1555.325 (title)
Evaluation by
corporation department. (1) The
2corporation department shall evaluate applications received under s.
238.32 555.32 3(2) and (3).
SB468,143,9
4(2) Subject to s.
238.335 555.335 (5), the
corporation department may reduce
5the size of an area nominated as a development zone, if the
corporation department 6determines the boundaries as proposed by the local governing body in an application
7under s.
238.32 555.32 (2) or (3) are inconsistent with the purpose of the development
8zone program. Any nominated area which is reduced under this subsection need not
9comply with s.
238.335 555.335 (1) and (4).
SB468,143,14
10(3) After evaluating an application submitted under s.
238.32 555.32 (2) or (3),
11the
corporation department may approve the application, subject to any reduction
12in the size of the nominated area under sub. (2). If the
corporation department 13approves the application, the
corporation department shall designate the area as a
14development zone, subject to s.
238.31 555.31, and notify the local governing body.
SB468,396
15Section
396. 238.335 of the statutes is renumbered 555.335, and 555.335 (6)
16(a) 2. and (c) and (7), as renumbered, are amended to read:
SB468,143,1817
555.335
(6) (a) 2. Each area meets at least 3 of the criteria listed in s.
238.31 18555.31 (1) (e) 4.
SB468,143,2119
(c) If an application is submitted by the governing body of a county under s.
20238.32 555.32 (2) or (3), up to 4 separate areas may be nominated or designated as
21one development zone, if par. (a) 1. to 3. applies.
SB468,143,24
22(7) The
corporation department may waive the requirements of this section in
23a particular case, if the
corporation department determines that application of the
24requirement is impractical with respect to a particular development zone.
SB468,397
1Section
397. 238.34 of the statutes is renumbered 555.34, and 555.34 (1), (2),
2(3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:
SB468,144,83
555.34
(1) Except as provided under sub. (6), at any time after a development
4zone is designated by the
corporation department, a local governing body may submit
5an application to change the boundaries of the development zone. If the boundary
6change reduces the size of a development zone, the local governing body shall explain
7why the area excluded should no longer be in a development zone. The
corporation 8department may require the local governing body to submit additional information.
SB468,144,12
9(2) The
corporation department may approve an application for a boundary
10change if the development zone, as affected by the boundary changes, meets the
11applicable requirements of s.
238.335 555.335 and 3 of the criteria under s.
238.31 12555.31 (1) (e) 4.
SB468,144,14
13(3) (intro.) If the
corporation department approves an application for a
14boundary change under sub. (2), it shall do all of the following:
SB468,144,1615
(a) Redetermine the limit on the tax benefits for the development zone
16established under s.
238.345 555.345 (2) (a).
SB468,144,19
17(4) The change in the boundaries or tax benefits limit of a development zone
18shall be effective on the day the
corporation department notifies the local governing
19body under sub. (3) (b).
SB468,144,24
20(5) No change in the boundaries of a development zone may affect the duration
21of an area as a development zone under s.
238.345
555.345 (1) (a). The
corporation 22department may consider a change in the boundary of a development zone when
23evaluating an application for an extension of the designation of an area as a
24development zone under s.
238.345 555.345 (1) (b).
SB468,145,3
1(6) The
corporation department may not accept any applications under sub. (1)
2to change the boundaries of a development zone designated under s.
238.31 555.31 3on or after March 6, 2009.
SB468,398
4Section
398. 238.345 of the statutes is renumbered 555.345, and 555.345 (1)
5(a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3) (intro.), (a) and (b), as
6renumbered, are amended to read:
SB468,145,97
555.345
(1) (a) The designation of an area as a development zone shall be
8effective for 240 months, beginning on the day the
corporation department notifies
9the local governing body under s.
238.325 555.325 (3) of the designation.
SB468,145,1410
(b) The local governing body may apply to the
corporation department for one
1160-month extension of the designation. The
corporation department shall adopt
12rules establishing criteria for approving an extension of a designation of an area as
13a development zone under this subsection. No applications may be accepted by the
14corporation department under this paragraph on or after March 6, 2009.
SB468,145,17
15(2) (a) When the
corporation department designates a development zone under
16s.
238.31 555.31, it shall establish a limit for tax benefits for the development zone
17determined by allocating to the development zone a portion of $38,155,000.
SB468,145,2118
(am) Notwithstanding par. (a), the
corporation department may increase the
19established limit for tax benefits for a development zone. The
corporation 20department may not increase the limit for tax benefits established for any
21development zone designated under s.
238.31 555.31 on or after March 6, 2009.
SB468,145,2322
(b) Annually the
corporation department shall estimate the amount of forgone
23state revenue because of tax benefits claimed by persons in each development zone.
SB468,146,3
1(c) 1. Ninety days after the day on which the
corporation department 2determines that the forgone tax revenues under par. (b) will equal or exceed the limit
3for the development zone established under par. (a) or (am).