5. A description of anticipated economic and other activity in the proposed zone, including industrial uses, commercial or retail uses, and residential uses.
6. A proposal as to the time period in which the designation would remain in effect.
(3) Designation of
rural enterprise development zones; criteria. (a) The department may
, upon application, designate not more than 10
rural enterprise development zones. The department may designate an area as a rural enterprise development zone if all of the following apply:
1. The area does not exceed 5,000 acres.
2. The area does not include any part of a city of the first class or a city with a population greater than 200,000.
(b) In determining whether to
grant an application to designate an area under par. (a), the department shall consider all of the following:
1. Indicators of the area's economic need, which may include data regarding household income, average wages, the condition of property, housing values, population decline, job losses, infrastructure and energy support,
and the rate of business development .
2. Indicators of the likelihood of success in achieving the goals under sub. (2) (b) 3. , which may include the strength and viability of the development plan; the level of creativity and innovation reflected in the development plan; the strength of support for the proposal in the proposed zone; the existing resources available to the area; the effect of designation on other initiatives and programs to promote economic and community development in the area, including
regional initiatives and programs; the extent to which an applicant proposes to ease regulatory burdens; the extent to which the development plan links job creation and job training ; and
the extent to which the development plan focuses on creating high-paying jobs.
(c) The department shall, to the extent possible, give preference to
applications in which the areas proposed for designation have the lowest population densities and have, according to the indicators under par. (b) 1., the greatest economic need.
(4) Time limits; reporting.
(a) A designation under sub. (3) may remain in effect for no more than 12 years.
(b) If the department designates an area as a rural enterprise development zone under sub. (3), the governing body of the local governmental unit that applied for designation shall, during the time that the designation is in effect, annually submit a report to the department, in a form and at a time prescribed by the department, describing the local governmental unit's progress in meeting the goals contained in the development plan under sub. (2) (b) 3., and any additional information required by the department.
(5) Certification. The department may certify for tax benefits any of the following:
(a) A business that begins operations in a
rural enterprise development zone.
(b) A business that relocates to a
rural enterprise development zone from outside this state, if the business offers compensation and benefits to its employees working in the zone for the same type of work that are at least as favorable as those offered to its employees working outside the zone, as determined by the department.
(c) A business that expands operations in a
rural enterprise development zone
or that relocates to a rural enterprise development zone from another location in this state , but only if any of the following apply:
1. The business will increase its personnel by at least 10 percent and all of the following apply:
a. The business enters into an agreement with the department to claim tax benefits only for years during which the business maintains the increased level of personnel.
b. The business offers compensation and benefits for the same type of work to its employees working in the
rural enterprise development zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department.
2. The business makes a capital investment in property located in the
rural enterprise development zone and all of the following apply:
a. The value of the capital investment is equal to at least 10 percent of the business' gross revenues in the preceding tax year attributable to business activities in this state.
b. The business enters into an agreement with the department to claim tax benefits only for years during which the business maintains the capital investment.
c. The business offers compensation and benefits for the same type of work to its employees working in the zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department.
(6) Other duties. (a) The department of commerce shall notify the department of revenue when the department of commerce certifies a business to receive tax benefits.
(b) The department shall revoke a certification under sub. (5) if the business does any of the following:
1. Supplies false or misleading information to obtain tax benefits.
2. Leaves the
rural enterprise development zone to conduct substantially the same business outside of the rural enterprise development zone.
3. Ceases operations in the
rural enterprise development zone and does not renew operation of the business or a similar business in the
rural enterprise development zone within 12 months.
(c) The department of commerce shall notify the department of revenue within 30 days of a revocation under par. (b).
(d) The department may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment or capital investment levels required by an agreement under sub. (5) (c).
361,20
Section
20.
Initial applicability.
(1) Individual income tax, capital gains tax credits. The treatment of section 71.07 (3c) and (3e) of the statutes first applies to taxable years beginning on July 1, 2007 .
(2) Corporate income and franchise tax credits. The treatment of sections 71.07 (3w), 71.28 (3w), and 71.47 (3w) of the statutes first applies to taxable years beginning on July 1, 2007 .
