71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), development zones sales tax credit under s. 71.07 (2ds) unless the credit is based on activity in a zone under s. 560.797, development zones jobs credit under s. 71.07 (2dj) unless the credit is based on activity in a zone under s. 560.797, earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.
209,22
Section
22. 71.28 (1dd) (a) 1. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.28 (1dd) (a) 1. “Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children or benefits provided at a facility for persons who are physically or mentally incapable of caring for themselves.
209,23
Section 23
. 71.28 (1dd) (a) 2. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.28 (1dd) (a) 2. “Employment-related day care expenses" means amounts paid or incurred by a claimant, during the 2-year period beginning with the day that the member of the targeted group begins work for the claimant, for providing or making day care center benefits available to a qualifying individual in order to enable a member of a targeted group to be employed by the claimant.
209,24
Section 24
. 71.28 (1dj) (am) 1. of the statutes is amended to read:
71.28 (1dj) (am) 1. Modify “member of a targeted group", as defined in section 51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to s. 109.07 (1m) and persons specified under 29 USC 1651 (a) and to require a member of a targeted group to be a resident of this state.
209,25
Section 25
. 71.28 (1dj) (am) 3. of the statutes is amended to read:
71.28 (1dj) (am) 3. Modify the rule for certification under section 51 (d) (16) (A) of the internal revenue code to allow certification within the 30-day 90-day period beginning with the first day of employment of the employe by the claimant.
209,26
Section 26
. 71.28 (1dj) (am) 4h. of the statutes is created to read:
71.28 (1dj) (am) 4h. Modify section 51 (a) of the internal revenue code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works employment position for service either in an unsubsidized position or in a trial job under s. 49.147 (3) and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant.
209,27
Section 27
. 71.28 (1dj) (am) 4i. of the statutes is created to read:
71.28 (1dj) (am) 4i. Modify section 51 (b) (3) of the internal revenue code so that the amount of the qualified first-year wages that may be taken into account is $13,000.
209,28
Section 28
. 71.28 (1dj) (am) 8m. of the statutes is amended to read:
71.28 (1dj) (am) 8m. For each person, whether or not he or she is a member of a targeted group, who is determined by the department of development to be a resident of the development zone in which he or she is employed, calculate a credit equal to 10% of the wages earned by such person during the first year 1st and 2nd years of the person's employment in the development zone, up to a maximum credit of $600 per year.
209,29
Section 29
. 71.28 (1dj) (d) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.
209,30
Section 30
. 71.28 (1dj) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.28 (1dj) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.
209,31
Section 31
. 71.28 (1dL) (ar) of the statutes is amended to read:
71.28 (1dL) (ar) If the credit under par. (a) is claimed for an amount expended to acquire property, the property must have been acquired by the claimant after the place where the property is located was designated a development zone under s. 560.71 and the completed project must be placed in service after the claimant is certified for tax benefits under s. 560.765 (3) and the property must not have been previously owned by the claimant or a related person during the period the development zone is in existence or during the 2 years prior to the designation of the development zone under s. 560.71. No credit is allowed for an amount expended to acquire property until the property, either in its original state as acquired by the claimant or as subsequently constructed, rehabilitated, remodeled or repaired, is placed in service.
209,32
Section 32
. 71.28 (1ds) (c) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.
209,33
Section 33
. 71.28 (1ds) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.28 (1ds) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.
209,34
Section 34
. 71.30 (3) (eb) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.30 (3) (eb) Development zones jobs credit under s. 71.28 (1dj) if the credit is based on activity in a zone under s. 560.797.
209,35
Section 35
. 71.30 (3) (ec) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.30 (3) (ec) Development zones sales tax credit under s. 71.28 (1ds) if the credit is based on activity in a zone under s. 560.797.
209,36
Section 36
. 71.30 (3) (f) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), the development zones sales tax credit under s. 71.28 (1ds) unless the credit is based on activity in a zone under s. 560.797, the development zones job credit under s. 71.28 (1dj) unless the credit is based on activity in a zone under s. 560.797 and estimated tax payments under s. 71.29.
209,37
Section 37
. 71.47 (1dd) (a) 1. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.47 (1dd) (a) 1. “Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children or benefits provided at a facility for persons who are physically incapable of caring for themselves.
209,38
Section 38
. 71.47 (1dd) (a) 2. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.47 (1dd) (a) 2. “Employment-related day care expenses" means amounts paid or incurred by a claimant, during the 2-year period beginning with the day that the member of the targeted group begins work for the claimants for providing or making day care center benefits available to a qualifying individual in order to enable a member of a targeted group to be employed by the claimant.
209,39
Section 39
. 71.47 (1dj) (am) 1. of the statutes is amended to read:
71.47 (1dj) (am) 1. Modify “member of a targeted group", as defined in section 51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to s. 109.07 (1m) and persons specified under 29 USC 1651 (a) and to require a member of a targeted group to be a resident of this state.
209,40
Section 40
. 71.47 (1dj) (am) 3. of the statutes is amended to read:
71.47 (1dj) (am) 3. Modify the rule for certification under section 51 (d) (16) (A) of the internal revenue code to allow certification within the 30-day 90-day period beginning with the first day of employment of the employe by the claimant.
209,41
Section 41
. 71.47 (1dj) (am) 4h. of the statutes is created to read:
71.47 (1dj) (am) 4h. Modify section 51 (a) of the internal revenue code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works employment position for service either in an unsubsidized position or in a trial job under s. 49.147 (3) and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant.
209,42
Section 42
. 71.47 (1dj) (am) 4i. of the statutes is created to read:
71.47 (1dj) (am) 4i. Modify section 51 (b) (3) of the internal revenue code so that the amount of the qualified first-year wages that may be taken into account is $13,000.
209,43
Section 43
. 71.47 (1dj) (am) 8m. of the statutes is amended to read:
71.47 (1dj) (am) 8m. For each person, whether or not he or she is a member of a targeted group, who is determined by the department of development to be a resident of the development zone in which he or she is employed, calculate a credit equal to 10% of the wages earned by such person during the first year 1st and 2nd years of the person's employment in the development zone, up to a maximum credit of $600 per year.
209,44
Section 44
. 71.47 (1dj) (d) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.
209,45
Section 45
. 71.47 (1dj) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.47 (1dj) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.
209,46
Section 46
. 71.47 (1dL) (ar) of the statutes is amended to read:
71.47 (1dL) (ar) If the credit under par. (a) is claimed for an amount expended to acquire property, the property must have been acquired by the claimant after the place where the property is located was designated a development zone under s. 560.71 and the completed project must be placed in service after the claimant is certified for tax benefits under s. 560.765 (3) and the property must not have been previously owned by the claimant or a related person during the period the development zone is in existence or during the 2 years prior to the designation of the development zone under s. 560.71. No credit is allowed for an amount expended to acquire property until the property, either in its original state as acquired by the claimant or as subsequently constructed, rehabilitated, remodeled or repaired, is placed in service.
209,47
Section 47
. 71.47 (1ds) (c) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.
209,48
Section 48
. 71.47 (1ds) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.47 (1ds) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.
209,49
Section 49
. 71.49 (1) (eb) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.49 (1) (eb) Development zones jobs credit under s. 71.47 (1dj) if the credit is based on activity in a zone under s. 560.797.
209,50
Section 50
. 71.49 (1) (ec) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:
71.49 (1) (ec) Development zones sales tax credit under s. 72.47 71.47 (1ds) if the credit is based on activity in a zone under s. 560.797.
209,51
Section 51
. 71.49 (1) (f) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), development zones sales tax credit under s. 71.47 (1ds) unless the credit is based on activity in a zone under s. 560.797, development zones jobs credit under s. 71.47 (1dj) unless the credit is based on activity in a zone under s. 560.797 and estimated tax payments under s. 71.48.
209,52
Section 52
. 73.03 (35) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
73.03 (35) To deny a portion of a credit claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr) or (2ds), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) or (4) (am) or 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds) or (4) (am) if granting the full amount claimed would violate the requirement under s. 560.75 (9) or 560.797 (4) (e) or would bring the total of the credits granted to that claimant under s. 560.75 (9) or 560.797 (4) (e), or the total of the credits granted to that claimant under all of those subsections, over the limit for that claimant under s. 560.768, 560.795 (2) (b) or 560.797 (5) (b).
209,53
Section 53
. 77.92 (4) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
77.92 (4) “Net business income", with respect to a partnership or limited liability company, means taxable income as calculated under section 703 of the internal revenue code; plus the items of income and gain under section 702 of the internal revenue code; minus the items of loss and deduction under section 702 of the internal revenue code; plus payments treated as not made to partners under section 707 (a) of the internal revenue code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr) and (2ds); but excluding income, gain, loss and deductions from farming. “Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employe as defined in section 3121 (d) (3) of the internal revenue code.
209,54
Section 54
. 560.70 (4) of the statutes is amended to read:
560.70 (4) “Local governing body" means the governing body of one or more cities, villages or, towns or counties or the elected governing body of a federally recognized American Indian tribe or band in this state.
209,55
Section 55
. 560.70 (6) of the statutes is amended to read:
560.70 (6) “Target population" means the residents of a development zone and persons who are members of targeted groups for the purposes of the credit under ss. 71.07 (2dj), 71.28 (1dj) and 71.47 (1dj).
209,56
Section 56
. 560.70 (7) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
560.70 (7) “Tax benefits" means the development zones day care credit under ss. 71.07 (2dd), 71.28 (1dd) and 71.47 (1dd), the development zones environmental remediation credit under ss. 71.07 (2de), 71.28 (1de) and 71.47 (1de), the development zones investment credit under ss. 71.07 (2di), 71.28 (1di) and 71.47 (1di), the development zones jobs credit under ss. 71.07 (2dj), 71.28 (1dj) and 71.47 (1dj), the development zones location credit under ss. 71.07 (2dL), 71.28 (1dL) and 71.47 (1dL), the development zones sales tax credit under ss. 71.07 (2ds), 71.28 (1ds) and 71.47 (1ds), the development zones research credit under s. 71.07 (2dr) and the additional 5% credit under ss. 71.28 (4) and 71.47 (4).
209,57
Section 57
. 560.71 (1) (cm) of the statutes is repealed.
209,58
Section 58
. 560.71 (1) (e) of the statutes is repealed and recreated to read:
560.71 (1) (e) The department determines all of the following:
1. That designation of the area as a development zone will serve a public purpose.
2. That designation of the area as a development zone will likely retain or increase employment in the area.
3. That economic development in the area is not likely to occur or continue without the department's designation of the area as a development zone.
4. That the area meets at least 3 of the following criteria:
a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under s. 560.72 (2) or (3) was submitted to the department.
b. The percentage of persons residing in the area who are members of households with household income levels at or below 80% of the statewide median household income is higher than the state average.
c. The percentage of households in the area receiving unemployment compensation under ch. 108, relief funded by a relief block grant under ch. 49 or aid to families with dependent children under s. 49.19 is higher than the state average.
d. In the 36 months immediately preceding the date on which the application under s. 560.72 (2) or (3) was submitted to the department, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to s. 109.07 (1m).
e. An employer in the vicinity of the area has given public notice under s. 109.07 (1m) of either a business closing or a mass layoff of at least 25 employes, or 25% of the employes, of a business, whichever is greater, that will result in a number of workers in the area being laid off permanently.
f. Property values in the area have been declining.
g. There has been a decline in the population in the area.
209,59
Section 59
. 560.71 (1m) of the statutes is created to read:
560.71 (1m) In making a determination under sub. (1) (e), the department shall consider all of the following:
(a) The extent of poverty, unemployment or other factors contributing to general economic hardship in the area.
(b) The prospects for new investment and economic development in the area.
(c) The amount of investment that is likely to result from the designation of the area as a development zone.
(d) The number of jobs that are likely to be created or retained in the area as a result of its designation as a development zone.
(e) The number of jobs that are likely to be available to the target population as a result of the designation of the area as a development zone.
(f) The competitive effect of designating the area as a development zone on other businesses in the vicinity of the area.
