2015 Wisconsin Act 55

55,3949 Section 3949. 237.07 (3) (a) of the statutes is amended to read:

237.07 (3) (a) For each fiscal year, the authority shall submit to the department of administration an audited financial statement of the funding received by the authority from the department of natural resources under s. 237.08 (2) and by the authority from contributions and other funding accepted by the authority under s. 237.08 (3).

55,3950 Section 3950. 237.08 (2) of the statutes is repealed.

55,3956c Section 3956c. 238.02 (1) of the statutes is amended to read:

238.02 (1) There is created an authority, which is a public body corporate and politic, to be known as the "Wisconsin Economic Development Corporation." The members of the board shall consist of the governor, who shall serve as chairperson of the board, and 6 members nominated by the governor, and with the advice and consent of the senate appointed, to serve at the pleasure of the governor; 3 members appointed by the speaker of the assembly, consisting of one majority and one minority party representative to the assembly, appointed as are the members of standing committees in the assembly, and one person employed in the private sector, to serve at the speaker's pleasure; and 3 members appointed by the senate majority leader, consisting of one majority and one minority party senator, appointed as are members of standing committees in the senate, and one person employed in the private sector, to serve at the majority leader's pleasure. The secretary of administration and the secretary of revenue shall also serve on the board as nonvoting members. The board shall elect a chairperson from among its nonlegislative voting members.

55,3956g Section 3956g. 238.02 (4) of the statutes is amended to read:

238.02 (4) All powers and duties assigned to the corporation under this chapter shall be exercised or carried out by the board, unless the board delegates the power or duty to an employee of the corporation or a committee established by the board.

55,3960g Section 3960g. 238.03 (4) of the statutes is created to read:

238.03 (4) (a) In this subsection, "unassigned balance" means all moneys held by the corporation that the corporation is not obligated by law or by contract to expend for a particular purpose or that the corporation has not otherwise assigned to be expended for a particular purpose.

(b) The board shall establish policies and procedures for maintaining and expending any unassigned balance that satisfy all of the following requirements:

1. The policies and procedures shall be consistent with best practices recommended by the Government Finance Officers Association.

2. The policies and procedures shall establish as a target that the corporation's unassigned balance on June 30 of each fiscal year be an amount equal to or less than one-sixth of the corporation's total administrative expenditures for that fiscal year.

55,3961b Section 3961b. 238.115 of the statutes is created to read:

238.115 Tax credit reporting. (1) Corporation obligations. No later than the end of the first month following each quarter, the corporation shall provide to the department of revenue all of the following information for the previous quarter:

(a) The identity of each person the corporation certified for tax credits under this chapter and, for each person, the amount certified.

(b) The identity of each person the corporation verified to claim tax credits under this chapter based on the person's satisfaction of all applicable requirements to be eligible to claim the tax credits and, for each person, the amount verified.

(c) The identity of each person, whether an entity or individual, who may claim tax credits as the result of each verification of each person identified under par. (b). The information provided under this paragraph shall specify the taxable year that applies for each of those persons.

(d) The identity of each person, whether an entity or individual, who may claim tax credits as the result of a transfer of tax credits under this chapter and, for each person, the amount transferred. The information provided under this paragraph shall specify the taxable year that applies for each of those persons.

(e) The identity of each person for whom the corporation revoked a certification for tax credits and, for each person, the amount revoked.

(f) The amount of tax credits already claimed that must be repaid as the result of a revocation for each person identified under par. (e).

(g) Any other information the department of revenue and the corporation agree is necessary to accurately track certification, verification, transfer, and usage of tax credits under this chapter.

(2) Taxpayer obligations. Each person the corporation certifies for tax credits under this chapter shall provide all information necessary for the corporation to comply with the reporting requirements under sub. (1).

(3) Department of revenue's obligation. The department of revenue shall track the amount of all tax credits administered by the corporation that have been claimed or used to offset tax liability and the amount of all available unused tax credits under this chapter.

55,3971b Section 3971b. 238.12 (1) of the statutes is amended to read:

238.12 (1) In this section, "tax benefits" means the credits under ss. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3t), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t), and 76.636.

55,3971r Section 3971r. 238.123 of the statutes is created to read:

238.123 Loan reduction. (1) Except for loans made under sub. (2), the corporation may not originate more than $10,000,000 in new loans in fiscal year 2015-16, may not originate more than $5,000,000 in loans in fiscal year 2016-17, and may not originate any new loan after June 30, 2017.

(2) The corporation may continue to administer its technology development loan program as that program was constituted on January 1, 2015. The corporation may not originate more than $3,000,000 annually in loans under that program, except that all loan amounts funded from federal revenue do not count toward that limit.

55,3975 Section 3975. 238.13 (2) (b) 2. of the statutes is repealed.

55,3976 Section 3976. 238.13 (2) (b) 3. of the statutes is created to read:

238.13 (2) (b) 3. The recipient of a grant under this section shall contribute to the project an amount that is equal to at least 50 percent of the amount of the grant.

55,3977 Section 3977. 238.13 (5) of the statutes is amended to read:

238.13 (5) Before the corporation awards a grant under this section, the corporation shall consider the recommendations of the department of administration and the department of natural resources.

55,3977m Section 3977m. 238.14 of the statutes is created to read:

238.14 St. Croix Valley Business Incubator. From the appropriation under s. 20.192 (1) (a), the corporation shall make a grant of $250,000 to the River Falls Economic Development Corporation to construct the St. Croix Valley Business Incubator. The corporation may award the grant under this section only if federal moneys are secured for the same purpose.

55,3979n Section 3979n. 238.145 of the statutes is created to read:

238.145 Grants for fabrication laboratories. (1) In this section:

(a) "Eligible recipient" means a person the corporation certifies under sub. (2) (b) as eligible to receive grants under this section.

(b) "Fabrication laboratory" means a medium-scale, high-technology workshop equipped with computer-controlled additive and subtractive manufacturing components, including 3-dimensional printers, laser engravers, computer numerical control routers, or plasma cutters.

(2) (a) The corporation shall implement an economic development program to award grants under this section.

(b) The corporation may certify a person as eligible to receive grants under this section as provided in policies and procedures adopted by the corporation under sub. (6).

(c) The corporation may not certify a person under par. (b) after June 30, 2017.

(3) (a) From the appropriation under s. 20.192 (1) (a), the corporation may award up to a total of $500,000 in grants to eligible recipients.

(b) The corporation may not award grants totaling more than $75,000 to each eligible recipient, and the corporation may not award a grant of more than $25,000 to an eligible recipient in any year.

(4) An eligible recipient of a grant under this section shall use all grant moneys for the purchase of equipment used for instructional and educational purposes in one or more fabrication laboratories by elementary, middle, junior, or senior high school students.

(5) (a) The corporation shall award grants under this section annually, on a competitive basis, based on an eligible recipient's financial need; and, subject to the limitations under par. (b), the corporation may not take into account whether an eligible recipient was previously awarded a grant under this section in determining whether to award a grant to the eligible recipient.

(b) The corporation may award no more than 3 annual grants to each eligible recipient, as follows:

1. In the first grant year, the corporation may contribute up to 75 percent of the eligible recipient's equipment expenditures under sub. (4).

2. In the 2nd grant year, the corporation may contribute up to 50 percent of the eligible recipient's equipment expenditures under sub. (4).

3. In the 3rd grant year, the corporation may contribute up to 25 percent of the eligible recipient's equipment expenditures under sub. (4).

(6) The corporation shall adopt policies and procedures to implement the grant program under this section.

55,3982 Section 3982. 238.15 (1) (f) 1. b. of the statutes is amended to read:

238.15 (1) (f) 1. 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 differentiating technology.

55,3983 Section 3983. 238.15 (1) (f) 1. c. of the statutes is amended to read:

238.15 (1) (f) 1. c. Services that are enabled by applying proprietary differentiating technology.

55,3984 Section 3984. 238.15 (1) (f) 2. of the statutes is amended to read:

238.15 (1) (f) 2. It is undertaking pre-commercialization activity related to proprietary differentiating technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary differentiating technology.

55,3990 Section 3990. 238.15 (1) (m) 1. (intro.) of the statutes is amended to read:

238.15 (1) (m) 1. (intro.) It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount determined under subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, except as provided in policies and procedures under sub. (3) (dm), a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

55,3991 Section 3991. 238.15 (1) (m) 3. of the statutes is created to read:

238.15 (1) (m) 3. Subdivision 1. does not apply to a business that the corporation certified for purposes of s. 71.07 (5d) before April 20, 2012, and that, in reliance on that certification, executed a note or bond that is convertible to an equity interest.

55,3991b Section 3991b. 238.15 (3) (b) of the statutes is repealed.

55,3991n Section 3991n. 238.15 (3) (d) (intro.) of the statutes is amended to read:

238.15 (3) (d) Rules Administration. (intro.) The corporation, in consultation with the department of revenue, shall adopt rules establish policies and procedures to administer this section. The rules and 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, 2010, $6,500,000 for calendar year 2010, and $20,000,000 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 and of the tax credits under ss. 71.07 (5b), 71.28 (5b), 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, 2010, $8,000,000 for calendar year 2010, and $20,500,000 is $30,000,000 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 policies and procedures shall also provide that, for calendar years beginning after December 31, 2007, a person who receives a credit under ss. s. 71.07 (5b) and or (5d), 71.28 (5b), 71.47 (5b), or 76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation, occurs during the 3-year period. The rules policies and procedures shall permit the corporation to reallocate credits under this section in any calendar year that are unused in any that calendar year to a person eligible for tax benefits, as defined under s. 238.16 (1) (d), if all of the following apply:

55,3991o Section 3991o. 238.15 (3) (d) (intro.) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

238.15 (3) (d) Administration. (intro.) The corporation, in consultation with the department of revenue, shall establish policies and procedures to administer this section and shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) and of tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) is $30,000,000 per calendar year. The policies and procedures shall provide that a person who receives a credit under s. 71.07 (5b) or (5d), 71.28 (5b), 71.47 (5b), or 76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation, occurs during the 3-year period. The policies and procedures shall permit the corporation to reallocate credits under this section in any calendar year that are unused in that calendar year to a person eligible for tax benefits, as defined under s. 238.16 (1) (d) 238.30 (7) (e), if all of the following apply:

55,3992 Section 3992. 238.15 (3) (dm) of the statutes is created to read:

238.15 (3) (dm) The corporation's policies and procedures under this subsection shall provide that a business is considered to have not relocated outside of this state under sub. (1) (m) 1., regardless of whether the business satisfies sub. (1) (m) 1. a. and b., if the corporation determines that the business's investment and employment levels in this state have not diminished.

55,3993 Section 3993. 238.15 (3) (e) of the statutes is amended to read:

238.15 (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 corporation 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 corporation may charge any person selling or otherwise transferring a credit under this paragraph a fee equal of up to 1 5 percent of the credit amount sold or transferred.

55,3993b Section 3993b. 238.15 (3) (f) of the statutes is created to read:

238.15 (3) (f) Limit on future allocations. 1. Beginning with December 31, 2014, tax credits that the corporation has not allocated under this section on or before December 31 of each year may not be allocated after that date.

2. Subdivision 1. does not apply to an allocation of tax credits occurring after December 31, 2014, and before the effective date of this subdivision .... [LRB inserts date].

55,3995 Section 3995. 238.16 (4) (c) of the statutes is amended to read:

238.16 (4) (c) Subject to a reallocation by the corporation pursuant to rules policies and procedures adopted under s. 238.15 (3) (d), the corporation may allocate up to $5,000,000 in tax benefits under this section in any calendar year, except that beginning on July 1, 2011, the corporation may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

55,3995e Section 3995e. 238.16 (5) (a) of the statutes is repealed.

55,3995f Section 3995f. 238.16 (5) (b) of the statutes is repealed.

55,3995g Section 3995g. 238.16 (5) (d) of the statutes is repealed.

55,3995h Section 3995h. 238.16 (5) (f) 3. of the statutes is amended to read:

238.16 (5) (f) 3. Conditions for the revocation of a certification under par. (b).

55,3996 Section 3996. 238.16 (6) of the statutes is created to read:

238.16 (6) Sunset. No tax benefits may be awarded under this section after December 31, 2015, unless the tax benefits were allocated to a taxpayer by the corporation in a contract that the corporation executed before that date or in a letter of intent to enter into such a contract that the corporation issued before that date.

55,3997r Section 3997r. 238.17 of the statutes is amended to read:

238.17 Historic rehabilitation tax credit. For taxable years beginning after December 31, 2013, the corporation may certify a person to claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6), if the corporation determines that the person is conducting an eligible activity under s. 71.07 (9m), 71.28 (6), or 71.47 (6). No person may claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6) without first being certified under this section. The corporation shall notify the department of revenue no later than January 15 of each year of the amount of the credits certified under this section and the name, address, and tax identification number of each person certified to claim the credit. The corporation shall notify the department of revenue of any revoked certification no later than 2 months after the revocation date.

55,3998b Section 3998b. 238.23 (1) of the statutes is amended to read:

238.23 (1) In this section, "tax credit" means a credit under s. 71.07 (2di), (2dm), (2dx), or (3g), 71.28 (1di), (1dm), (1dx), or (3g), or 71.47 (1di), (1dm), (1dx), or (3g).

55,3998c Section 3998c. 238.23 (4) (b) of the statutes is amended to read:

238.23 (4) (b) The corporation shall annually verify information submitted to the corporation under ss. 71.07 (2di), (2dm), (2dx), and (3g), 71.28 (1di), (1dm), (1dx), and (3g), and 71.47 (1di), (1dm), (1dx), and (3g).

55,4001b Section 4001b. 238.30 (7) (b) 1. of the statutes is amended to read: