Michigan offers a High-Tech and High Wage MEGA Tax Credit program that provides tax credits to promote the development of high-tech businesses in traditional and emerging industries. A business is eligible for tax credits to offset their Michigan business tax liability. Tax credit amounts are based on job creation. There are no rules for the program, however guidelines can be found through the Michigan Economic Development Corporation's Web site at
www.themedc.org.
Summary of factual data and analytical methodologies
The data and methodology for developing these rules were derived from and consisted of incorporating the criteria in
2009 Wisconsin Act 265.
Analysis and supporting documents used to determine effect on small business
The primary document that was used to determine the effect of the rules on small business was
2009 Wisconsin Act 265. This Act applies its private-sector requirements only to businesses and individuals for which a corresponding tax credit is desired.
Small Business Impact
The rules are not expected to impose significant costs or other adverse impacts on small businesses because the rules only address raising the yearly limits on tax credits for angel investments and for early stage seed investments.
Initial regulatory flexibility analysis
Types of small businesses that will be affected by the rules.
Reporting, bookkeeping and other procedures required for compliance with the rules.
The rules would not impose any new reporting, bookkeeping or other procedures on small businesses.
Types of professional skills necessary for compliance with the rules.
No new professional skills are necessary for compliance with the rules.
Rules have a significant economic impact on small businesses.
No.
Small business regulatory coordinator
Any inquiries for the small business regulatory coordinator for the Department of Commerce can be directed to Sam Rockweiler, as listed above.
Environmental Impact
The Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Fiscal Estimate
Summary
Raising the yearly limits on tax credits for angel investments and for early stage seed investments is not expected to significantly change either Department revenues or staff workload.
The proposed rules are not expected to impose any significant costs on local governments or the private sector, because the rules would only raise the yearly limits on tax credits for angel investments and for early stage seed investments.
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal implications
None known.
Agency Contact Person
Chris Schiffner, WI Dept. of Commerce
Division of Business Development
201 West Washington Avenue
Madison, WI 53703
Phone: (608) 267-2425
Notice of Hearing
Commerce
Financial Resources for Businesses and Communities, Chs.
Comm 100—
NOTICE IS HEREBY GIVEN That pursuant to SECTION
45 (1) (b) of
2009 Wisconsin Act 265, the Department of Commerce will hold a public hearing on emergency rules and proposed permanent rules to create Chapter
Comm 139, relating to rural outsourcing grants, and affecting small businesses.
Hearing Information
The public hearing will be held as follows:
Date and Time:
|
Location:
|
October 13, 2010
Wednesday
at 2:30 p.m.
|
Thompson Commerce Center Third Floor, Room 3B
201 West Washington Avenue
Madison, Wisconsin
|
This hearing will be held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call Sam Rockweiler at (608) 266-0797 or at Contact Through Relay at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Appearance at Hearing and Submittal of Written Comments
Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing, via e-mail. Persons submitting comments will not receive individual responses. The hearing record on this rulemaking will remain open until
October 15, 2010, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. E-mail comments should be sent to
sam.rockweiler@wi.gov. If e-mail submittal is not possible, written comments may be submitted to Sam Rockweiler, Department of Commerce, Division of Environmental and Regulatory Services, P.O. Box 14427, Madison, WI 53708-0427.
Copies of Proposed Rules
Paper copies may be obtained without cost from Sam Rockweiler at the Department of Commerce, Division of Environmental and Regulatory Services, P.O. Box 14427, Madison, WI 53707, or at
sam.rockweiler@wi.gov, or at telephone (608) 266-0797, or at Contact Through Relay. Copies will also be available at the public hearing.
Analysis Prepared by Department of Commerce
Statutes interpreted
Statutory authority
Explanation of agency authority
SECTION
45 (1) (b) of
2009 Wisconsin Act 265 requires the Department to promulgate rules for awarding the rural outsourcing grants established in SECTION 45 (1). Section
227.11 (2) (a), Stats., authorizes the Department to promulgate rules interpreting the provisions of any Statute administered by the Department.
Related statute or rule
The Department has rules for several other programs associated with economic and business development grants, but those programs are not targeted specifically to grants to businesses for outsourcing work to rural municipalities.
Summary of rule
The rules in this order address (1) the eligibility requirements for applicants and projects; (2) the documentation that must be submitted by applicants; (3) the Department's response to the submitted documentation; and (4) the Department's use of any funds that are not applied for by the end of the 2009-11 fiscal biennium.
Comparison with federal regulations
No similar existing or proposed federal regulations or programs were found through review of the Code of Federal Regulations and pertinent federal agency Web sites — including at the US Department of Agriculture, the US Department of Commerce, the US Economic Development Administration, and the US Small Business Administration.
Comparison with rules in adjacent states
Review of existing rules and programs in adjacent States and review of proposed state legislation through the National Conference of State Legislatures did not reveal any similar rules or programs in the adjacent States.
Summary of factual data and analytical methodologies
The data and methodology for developing these rules were derived from and consisted of (1) incorporating the applicable criteria in SECTION
45 of
2009 Wisconsin Act 265; (2) incorporating applicable best practices the Department has developed in administering similar programs for economic and business development, and (3) reviewing Internet-based sources of related federal, state, and private-sector information.
Analysis and supporting documents used to determine effect on small business
The primary documentation that was used to determine the effect of the rules on small business was SECTION
45 (1) of
2009 Wisconsin Act 265. This SECTION authorizes the Department to award grants to businesses for outsourcing work to rural municipalities and requires the Department to promulgate rules for administering the program. This SECTION applies its private-sector requirements only to businesses that chose to apply for the grants.
Small Business Impact
The rules are not expected to impose significant costs or other impacts on small businesses because the rules address submittal of documentation only by applicants that choose to pursue grants for outsourcing work to rural municipalities.
Small business regulatory coordinator
Any inquiries for the small business regulatory coordinator for the Department of Commerce can be directed to Sam Rockweiler, as listed above.
Initial regulatory flexibility analysis
Types of small businesses that will be affected by the rules.
Reporting, bookkeeping and other procedures required for compliance with the rules.
An application must be submitted to the Department, that includes information enabling the Department to determine the corresponding potential economic impacts of a proposed project.
Types of professional skills necessary for compliance with the rules.
No new professional skills are necessary for compliance with the rules.
Rules have a significant economic impact on small businesses.
No.
Environmental Impact
The Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Fiscal Estimate
Although the rules will newly result in review of documentation relating to issuing grants to businesses for outsourcing work to rural municipalities, the number of these reviews and grants is expected to be too small to result in significant changes in the Department's costs for administering its business development programs. Therefore, the proposed rules are not expected to have any significant fiscal effect on the Department.
The proposed rules are not expected to impose any significant costs on the private sector, because the rules address only voluntary submittal of documentation relating to grants for outsourcing work to rural municipalities
State fiscal effect
None.
