a. Manufacturing, biotechnology, nanotechnology, communications, agriculture, or clean energy creation or storage technology.
b. Processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, any other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary technology.
c. Services that are enabled by applying proprietary technology.
2. It is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary technology.
2,791
Section
791. 560.205 (1) (g) of the statutes is amended to read:
560.205 (1) (g) It is not primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).
2,792
Section
792. 560.205 (1) (k) of the statutes is amended to read:
560.205 (1) (k) It For taxable years beginning before January 1, 2008, it has not received more than $1,000,000 in investments that have qualified for tax credits under s. 71.07 (5d).
2,793
Section
793. 560.205 (1) (kn) of the statutes is created to read:
560.205 (1) (kn) For taxable years beginning after December 31, 2007 and before January 1, 2011, it has not received more than $4,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.
2,794
Section
794. 560.205 (1) (L) of the statutes is created to read:
560.205 (1) (L) For taxable years beginning after December 31, 2010, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.
2,795
Section
795. 560.205 (2) of the statutes is amended to read:
560.205 (2) Early stage seed investment tax credits. The department shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), and, 71.47 (5b)
, and 76.638. An investment fund manager desiring certification shall submit an application to the department. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the department may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether to certify an investment fund manager, the department shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The department may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).
2,796
Section
796. 560.205 (3) (d) of the statutes is amended to read:
560.205 (3) (d) Rules. The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011, and $18,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011, and $18,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), or 71.47 (5b), or 76.638 unless the person's investment is kept in a certified business, or with a certified fund manager, for no less than 3 years.
2,797
Section
797. 560.205 (3) (e) of the statutes is created to read:
560.205 (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 department of commerce 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 department may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred. The department shall deposit all fees collected under this paragraph in the appropriation account under s. 20.143 (1) (gm).
2,798
Section
798. 560.207 (1) of the statutes is amended to read:
560.207 (1) The department of commerce shall implement a program to certify taxpayers, including taxpayers who are members of dairy cooperatives, as eligible for the dairy manufacturing facility investment credit under ss. 71.07 (3p), 71.28 (3p), and 71.47 (3p).
2,799
Section
799. 560.207 (2) of the statutes is amended to read:
560.207 (2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of dairy manufacturing facility investment credits allocated to taxpayers in fiscal year 2007-08 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are not members of dairy cooperatives in fiscal year 2008-09, and in each fiscal year thereafter, may not exceed $700,000. The total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2009-10 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.
2,800
Section
800. 560.208 of the statutes is created to read:
560.208 Meat processing facility investment credit. (1) The department of commerce shall implement a program to certify taxpayers as eligible for the meat processing facility investment credit under ss. 71.07 (3r), 71.28 (3r), and 71.47 (3r).
(2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of meat processing facility investment credits allocated to taxpayers in fiscal year 2009-10 may not exceed $300,000 and the total amount of meat processing facility investment credits allocated to taxpayers in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.
(3) The department of commerce shall inform the department of revenue of every taxpayer certified under sub. (1) and the amount of credits allocated to the taxpayer.
(4) The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section.
2,801
Section
801. 560.605 (2m) (g) of the statutes is repealed.
2,802
Section
802. 560.605 (7) (e) of the statutes is repealed.
2,803
Section
803. Subchapter VI (title) of chapter 560 [precedes 560.70] of the statutes is repealed and recreated to read:
CHAPTER 560
SUBCHAPTER VI
Tax incentives for business
development in Wisconsin
2,804
Section
804. 560.70 (2g) of the statutes is created to read:
560.70 (2g) "Eligible activity" means an activity described under s. 560.702.
2,805
Section
805. 560.70 (2m) of the statutes is renumbered 560.70 (2m) (a) and amended to read:
560.70 (2m) (a) "Full Except as provided in par. (b), "full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
2,806
Section
806. 560.70 (2m) (b) of the statutes is created to read:
560.70 (2m) (b) The department may by rule specify circumstances under which the department may grant exceptions to the requirement under par. (a) that a full-time job means a job in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, but under no circumstances may a full-time job mean a job in which an individual, as a condition of employment, is required to work less than 37.5 hours per week.
2,807
Section
807. 560.70 (4m) of the statutes is created to read:
560.70
(4m) "Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), or in a real work, real pay project position under s. 49.147 (3m), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a dislocated worker, as defined in
29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under
26 USC 51 (d) (13) (A) by a designated local agency, as defined in
26 USC 51 (d) (12).
2,808
Section
808. 560.70 (7) (a) of the statutes is amended to read:
560.70 (7) (a) Except as provided in pars. (b) and, (c), and (d), "tax benefits" means the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.
2,809
Section
809. 560.70 (7) (d) of the statutes is created to read:
560.70 (7) (d) In ss. 560.701 to 560.706, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.
2,810
Section
810. 560.701 of the statutes is created to read:
560.701 Certification for tax benefits.
(1) Application. Any person may apply to the department on a form prepared by the department for certification under this section. The application shall include all of the following:
(a) The name and address of the person.
(b) The federal tax identification number of the person.
(c) The names and addresses of the locations where the person conducts business and a description of the business activities conducted at those locations.
(d) A description of each eligible activity conducted or proposed to be conducted by the person.
(e) Other information required by the department or the department of revenue.
(2) Certification. (a) The department may certify a person who submits an application under sub. (1) if, after conducting an investigation, the department determines that the person is conducting or intends to conduct at least one eligible activity.
(b) The department shall provide a person certified under this section and the department of revenue with a copy of the certification.
(3) Contract. A person certified under this section shall enter into a written contract with the department. The contract shall include provisions that detail all of the following:
(a) A description of each eligible activity being conducted or proposed to be conducted by the person.
(b) Whether any of the eligible activities will occur in an economically distressed area, as designated by the department under s. 560.704 (1).
(c) Whether any of the eligible activities will benefit members of a targeted group, as determined by the department under s. 560.704 (2).
(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. 560.703.
(e) The reporting requirements with which the person must comply.
(f) If feasible, a determination of the tax benefits the person will be authorized to claim under s. 560.703 (2) if the person fulfills the terms of the contract.
2,811
Section
811. 560.702 of the statutes is created to read:
560.702 Eligible activities. A person who conducts or proposes to conduct any of the following may be certified under s. 560.701 (2):
(1) Job creation project. A project that creates and maintains for a period of time established by the department by rule full-time jobs in addition to any existing full-time jobs provided by the person.
(2) Capital investment project. A project that involves a significant investment of capital, as defined by the department by rule under s. 560.706 (2) (b), by the person in new equipment, machinery, real property, or depreciable personal property.
(3) Employee training project. A project that involves significant investments in the training or reeducation of employees, as defined by the department by rule under s. 560.706 (2) (c), by the person for the purpose of improving the productivity or competitiveness of the business of the person.
(4) Project related to persons with corporate headquarters in Wisconsin. A project that will result in the location or retention of a person's corporate headquarters in Wisconsin or that will result in the retention of employees holding full-time jobs in Wisconsin if the person's corporate headquarters are located in Wisconsin.
2,812
Section
812. 560.703 of the statutes is created to read:
560.703 Limits on tax benefits and claiming tax benefits. (1) Limits. (a) Except as provided in par. (b), the total tax benefits available to be allocated by the department under ss. 560.701 to 560.706 may not exceed the sum of the tax benefits remaining to be allocated under ss. 560.71 to 560.785, 560.797, 560.798, 560.7995, and 560.96 on the effective date of this paragraph .... [LRB inserts date].
(b) The department may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a). The 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. 560.701 to 560.706.
(2) Authority to claim tax benefits. The department may authorize a person certified under s. 560.701 (2) to claim tax benefits only after the person has submitted a report to the department that documents to the satisfaction of the department that the person has complied with the terms of the contract under s. 560.701 (3) and the requirements of any applicable rules promulgated under s. 560.706 (2).
(3) Notice of eligibility. The department shall provide to the person and to the department of revenue a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.
2,813
Section
813. 560.704 of the statutes is created to read:
560.704 Eligible activities in economically distressed areas and benefiting members of targeted groups. The department may authorize a person certified under s. 560.701 (2) to claim additional tax benefits under s. 560.703 if, after conducting an investigation, the department determines any of the following:
(1) The person conducts at least one eligible activity in an area designated by the department as economically distressed. In designating an area as economically distressed under this subsection, the department shall follow the methodology established by rule under s. 560.706 (2) (e).
(2) The person conducts at least one eligible activity that benefits, creates, retains, or significantly upgrades full-time jobs for, that trains, or that reeducates, members of a targeted group.
2,814
Section
814. 560.705 of the statutes is created to read:
560.705 Revocation of certification. The department shall revoke the certification of a person who does any of the following:
(1) Supplies false or misleading information to obtain certification under s. 560.701 (2).
(2) Supplies false or misleading information to obtain tax benefits under s. 560.703.
(3) Leaves the state to conduct substantially the same business outside of the state.
(4) Ceases operations in the state and does not renew operation of the business or a similar business within 12 months.
2,815
Section
815. 560.706 of the statutes is created to read:
560.706 Responsibilities of the department. The department shall do all of the following:
(1) Accountability. (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. 560.701 (2) and eligible to receive tax benefits under s. 560.703.
(b) Notify and obtain written approval from the secretary for any certification under sub. (2) (j).
(2) Rules. Establish by rule all of the following:
(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. 560.701 (2) and the corresponding per employee tax benefit for which a person certified under s. 560.701 (2) may be eligible.
(b) A definition of "significant investment of capital" for purposes of s. 560.702 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 560.701 (2) and who conducts a project described in s. 560.702 (2) may be eligible. The 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.
(c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 560.702 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 560.701 (2) and who conducts a project under s. 560.702 (3) may be eligible.
