(am) Notwithstanding par. (a), the department corporation may increase the established limit for tax benefits for a development zone. The department corporation may not increase the limit for tax benefits established for any development zone designated under s. 560.71 238.31 on or after March 6, 2009.
(b) Annually the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development zone.
(c) 1. Ninety days after the day on which the department corporation determines that the forgone tax revenues under par. (b) will equal or exceed the limit for the development zone established under par. (a) or (am).
2. The day that the department corporation withdraws its designation of an area as a development zone under sub. (3).
(d) The department corporation shall immediately notify the local governing body of a change in the expiration date of the development zone under par. (c).
(3) The department corporation may withdraw the designation of an area as a development zone if any of the following apply applies:
(a) No person is certified as eligible to receive tax benefits under s. 560.765 238.365 (3) during the 12-month period beginning on the day the area is designated as a development zone and the department corporation determines that the local governing body that nominated the zone is not in compliance with s. 560.763 238.363.
(b) No person is certified as eligible to receive tax benefits under s. 560.765 238.365 (3) during the 24-month period beginning on the day the area is designated a development zone.
32,3427
Section
3427. 560.75 of the statutes is renumbered 238.35, and 238.35 (intro.), (6), (7), (8) and (10), as renumbered, are amended to read:
238.35 Additional duties of the department corporation. (intro.) The department corporation shall do all of the following:
(6) Notify University of Wisconsin small business development centers, the Wisconsin housing and development centers, the central administration of all University of Wisconsin campuses and regional planning commissions about the development zone program and encourage those entities to provide advice to the department corporation or local governing bodies on ways to improve the development zone program.
(7) Prepare forms for the certification described under s. 560.765 238.365 (5).
(8) Annually verify information submitted to the department corporation under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.
(10) Enter into an agreement with the local governing body of a 1st class city where a development zone is designated under s. 560.71 238.31 (3) (c) 1. to provide efficient administration of the development zone program within the development zone.
32,3428
Section
3428. 560.763 of the statutes is renumbered 238.363, and 238.363 (1) (intro.) and (c) and (4), as renumbered, are amended to read:
238.363 (1) (intro.) If an area nominated by a local governing body is designated as a development zone under s. 560.71 238.31, the local governing body shall do all of the following:
(c) Assist the department corporation in the administration of the development zone program.
(4) The local governing body of a 1st class city where a development zone is designated under s. 560.71
238.31 (3) (c) 1. shall enter into an agreement with the department corporation to provide efficient administration of the development zone program within the development zone.
32,3429
Section
3429. 560.765 of the statutes is renumbered 238.365, and 238.365 (intro.), (2), (3) (intro.), (b), (c), (e) and (j) and (5) (e), (g) and (h), as renumbered, are amended to read:
238.365 Certification for tax benefits. (intro.) The department corporation shall do all of the following:
(2) Determine whether a person applying for tax benefits engages or will engage in economic activity which that violates s. 560.78 238.38 (1).
(3) (intro.) Subject to s. 560.78
238.38, certify persons who are eligible to claim tax benefits while an area is designated as a development zone, according to the following criteria:
(b) The person's commitment not to engage in economic activity that violates s. 560.78 238.38 (1).
(c) The number of full-time jobs that will be created, retained, or substantially upgraded as a result of the person's economic activity in relation to the amount of tax benefits estimated for the person under sub. (4).
(e) The amount the person proposes to invest in a business, or spend on the construction, rehabilitation, repair, or remodeling of a building, located within the development zone.
(j) Any other criteria established under rules promulgated adopted by the department
corporation.
(5) (e) The estimated number of full-time jobs that will be created, retained, or significantly upgraded in the development zone because of the person's business.
(g) The limit under s. 560.768 238.368 on tax benefits the person may claim while an area is designated as a development zone.
(h) Other information required by the department corporation or the department of revenue.
32,3430
Section
3430. 560.768 of the statutes is renumbered 238.368, and 238.368 (1) (a) and (b), (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are amended to read:
238.368 (1) (a) The department corporation shall establish a limit on the maximum amount of tax benefits a person certified under s. 560.765 238.365 (3) may claim while an area is designated as a development zone.
(b) When establishing a limit on tax benefits under par. (a), the department corporation shall do all of the following:
1. Consider all of the criteria described in s. 560.765 238.365 (3) (a) to (e).
2. Establish a limit which does not greatly exceed a recommended limit, established under rules promulgated adopted by the department corporation based on the cost, number and types of full-time jobs that will be created, retained, or upgraded, including full-time jobs available to members of the targeted population, as a result of the economic activity of the person certified under s. 560.765 238.365 (3).
(2) (intro.) The department corporation may, upon request, increase a limit on tax benefits established under sub. (1) if the department corporation does all of the following:
(b) Revises the certification required under s. 560.765 238.365 (5) and provides a copy of the revised form to the department of revenue and the person whose limit is increased under this subsection.
(3) (a) (intro.) The department corporation may reduce a limit established under sub. (1) or (2) if the department corporation determines that any of the following applies:
1. The limit is not consistent with the criteria listed under s. 560.765 238.365 (3) (a) to (e).
(b) The department corporation shall notify the department of revenue and the person whose limit on tax benefits is reduced under par. (a) and provide a written explanation to the person of the reasons for reducing the limit.
32,3431
Section
3431. 560.77 of the statutes is renumbered 238.37, and 238.37 (1) (intro.) and (b) and (2), as renumbered, are amended to read:
238.37 (1) (intro.) The department
corporation shall revoke the certification of a person certified under s. 560.765 238.365 (3) if the person does any of the following:
(b) Becomes subject to revocation under s. 560.78 238.38 (1).
(2) The department corporation shall notify the department of revenue within 30 days of revoking a certification under sub. (1).
32,3432
Section
3432. 560.78 of the statutes is renumbered 238.38, and 238.38 (1) (intro.), (1m), (2) (intro.) and (a) and (3) (a) and (b), as renumbered, are amended to read:
238.38 (1) (intro.) Except as provided in subs. (2) and (3), no person may be certified under s. 560.765
238.365 (3), or a person's certification may be revoked under s. 560.77 238.37, if the proposed new business, expansion of an existing business, or other proposed economic activity in a development zone would do or does any of the following:
(1m) No person may be certified under s. 560.765 238.365 (3) on or after March 6, 2009.
(2) (intro.) Subsection (1) does not apply if, after a hearing, the department corporation, or the local governing body under sub. (3) (a), determines that any of the following applies:
(a) The total number of full-time jobs provided by the person in this state would be reduced if the person were not certified under s. 560.765 238.365 (3) or if the person's certification were revoked.
(3) (a) Except as provided in pars. (b) and (c), if the economic activity for which a person is seeking certification under s. 560.765 238.365 (3) is the relocation of a business into a development zone from a location that is outside the development zone but within the limits of a city, village, town, or federally recognized American Indian reservation in which that development zone is located, the local governing body that nominated that area as a development zone under s. 560.72 238.32 shall determine whether sub. (2) (a) or (b) applies.
(b) Only the department corporation may determine whether sub. (2) (a) or (b) applies to a business relocation described in par. (a) if the business relocation would likely result in the loss of full-time jobs at or transfer of employees from a business location that is in this state but outside the limits of any city, village, town, or federally recognized American Indian reservation in which the development zone is located.
32,3433
Section
3433. 560.785 of the statutes is renumbered 238.385, and 238.385 (1) (intro.), (b), (bm) and (c) (intro.) and (2) (intro.), (b) and (c), as renumbered, are amended to read:
238.385 (1) (intro.) For the development zone program under ss. 560.70 and 560.71 to 560.78 238.30 and 238.31 to 238.38, the development opportunity zone program under s. 560.795 238.395, and the enterprise development zone program under s. 560.797 238.397, the department corporation shall promulgate adopt rules that further define a person's eligibility for tax benefits. The rules shall do at least all of the following:
(b) Allow a person to claim up to $8,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone, or as an enterprise development zone for creating a full-time job that is filled by a member of the target population.
(bm) Allow a person to claim up to $8,000 in tax benefits during the time that an area is designated as an enterprise development zone for retaining a full-time job if the department corporation determines that the person made a significant capital investment to retain the full-time job.
(c) (intro.) Allow a person to claim up to $6,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone, or as an enterprise development zone for any of the following:
(2) (intro.) The department corporation may by rule specify circumstances under which the department
corporation may grant exceptions to any of the following:
(b) The requirement under ss. 560.70 238.30 (2m) and 560.797 238.397 (1) (am) that an individual's pay must equal at least 150% of the federal minimum wage.
(c) The requirement under ss. 560.70 238.30 (2m) and 560.797 238.397 (1) (am) that an individual's position must be regular, nonseasonal, and full-time and that the individual must be required to work at least 2,080 hours per year, including paid leave and holidays.
32,3434
Section
3434. 560.795 of the statutes is renumbered 238.395, and 238.395 (1) (a), (b), (c), (d), (e), (f), (g) and (h), (2) (c), (d) and (e), (3) (a), (b) 1., 2., 3., 4., 5., 6., 7., 8. and 9., (c) and (d), (4) (a) (intro.) and (b) and (5) (a) (intro.), 2. and 3., (b), (c), (d), (e) (intro.) and 3. and (f), as renumbered, are amended to read:
238.395 (1) (a) An area in the city of Beloit, the legal description of which is provided to the department
corporation by the local governing body of the city of Beloit.
(b) An area in the city of West Allis, the legal description of which is provided to the department corporation by the local governing body of the city of West Allis.
(c) An area in the city of Eau Claire, the legal description of which is provided to the department corporation by the local governing body of the city of Eau Claire.
(d) An area in the city of Kenosha, the legal description of which is provided to the department corporation by the local governing body of the city of Kenosha.
(e) An area in the city of Milwaukee, the legal description of which is provided to the department
corporation by the local governing body of the city of Milwaukee.
(f) For the Gateway Project, an area in the city of Beloit, the legal description of which is provided to the department corporation by the local governing body of the city of Beloit.
(g) An area in the city of Janesville, the legal description of which is provided to the department corporation by the local governing body of the city of Janesville.
(h) An area in the city of Kenosha, the legal description of which is provided to the department corporation by the local governing body of the city of Kenosha.
(2) (c) Annually, the department
corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by corporations or persons in each development opportunity zone.
(d) 1. Notwithstanding pars. (a) and (e), the designation of an area as a development opportunity zone shall expire 90 days after the day on which the department
corporation determines that the forgone tax revenues under par. (c) will equal or exceed the limit for the development opportunity zone.
2. The department corporation shall immediately notify the local governing body of the city in which the development opportunity zone is located of a change in the expiration date of the development opportunity zone under this paragraph.
(e) 1. The department corporation may extend the designation of an area under sub. (1) (g) as a development opportunity zone for an additional 60 months if the department corporation determines that an extension under this subdivision would support economic development within the city. If the department corporation extends the designation of the area as a development opportunity zone, the limit for tax benefits for the development opportunity zone under sub. (1) (g) is increased by $5,000,000.
2. The department corporation may extend the designation of an area under sub. (1) (h) as a development opportunity zone for an additional 60 months if the department corporation determines that an extension under this subdivision would support economic development within the city. If the department corporation extends the designation of the area as a development opportunity zone, the limit for tax benefits for the development opportunity zone under sub. (1) (h) is increased by $5,000,000.
(3) (a) 1. Any corporation person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (a) or (b) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department corporation no later than 6 months after April 23, 1994, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.
2. Any corporation person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (c) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department
corporation no later than 6 months after April 28, 1995, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.
3. Any corporation person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (d) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department
corporation no later than July 1, 2000, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.
4. Any person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (e), (f), (g), or (h) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department
corporation shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.
(b) 1. The name and address of the corporation's or person's business for which tax benefits will be claimed.
2. The appropriate federal tax identification number of the corporation or person.
3. The names and addresses of other locations outside of the development opportunity zone where the corporation or person conducts business and a description of the business activities conducted at those locations.
4. The amount that the corporation or person proposes to invest in a business, or spend on the construction, rehabilitation, repair, or remodeling of a building, located within the development opportunity zone.
5. The estimated total investment of the corporation or person in the development opportunity zone.
6. The number of full-time jobs that will be created, retained, or substantially upgraded as a result of the corporation's or person's economic activity in relation to the amount of tax benefits estimated for the corporation or person.
7. The corporation's or person's plans to make reasonable attempts to hire employees from the targeted population.
8. A description of the commitment of the local governing body of the city in which the development opportunity zone is located to the corporation's or person's project.
9. Other information required by the department
corporation or the department of revenue.
(c) The department corporation shall notify the department of revenue of all corporations or persons entitled to claim tax benefits under this subsection.
(d) The department corporation annually shall verify information submitted to the department corporation under s. 71.07 (2di), (2dm), or (2dx), 71.28 (1di), (1dm), or (1dx), 71.47 (1di), (1dm), or (1dx), or 76.636.
(4) (a) (intro.) The department corporation shall revoke the entitlement of a corporation or person to claim tax benefits under sub. (3) if the corporation or person does any of the following:
(b) The department corporation shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).
