2015 Wisconsin Act 55

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:

238.30 (7) (b) 1. Except as provided in subd. 2., in s. 238.395, "tax benefits" means the development zones investment credit under ss. 71.07 (2di), 71.28 (1di), and 71.47 (1di) and the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636. With respect to the development opportunity zones under s. 238.395 (1) (e) and (f), "tax benefits" also means the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).

55,4001c Section 4001c. 238.30 (7) (e) of the statutes is created to read:

238.30 (7) (e) In s. 238.308, "tax benefits" means the business development tax credit under ss. 71.07 (3y), 71.28 (3y), and 71.47 (3y).

55,4004b Section 4004b. 238.301 (2) (b) of the statutes is amended to read:

238.301 (2) (b) The corporation shall provide a person certified under this section and the department of revenue with a copy of the certification.

55,4005 Section 4005. 238.303 (1) (a) of the statutes is amended to read:

238.303 (1) (a) Except as provided in pars. (am) and (b), and subject to a reallocation by the corporation pursuant to rules adopted under s. 238.15 (3) (d), the total tax benefits available to be allocated by the corporation under ss. 238.301 to 238.306 may not exceed the sum of the tax benefits remaining to be allocated under s. 560.71 to 560.785, 2009 stats., s. 560.797, 2009 stats., s. 560.798, 2009 stats., s. 560.7995, 2009 stats., and s. 560.96, 2009 stats., on March 6, 2009, plus $100,000,000.

55,4005e Section 4005e. 238.303 (3) of the statutes is amended to read:

238.303 (3) Notice of eligibility. The corporation 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.

55,4006 Section 4006. 238.303 (4) of the statutes is created to read:

238.303 (4) Sunset. No tax benefits may be awarded under ss. 238.301 to 238.306 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.

55,4006h Section 4006h. 238.3045 (2) (b) of the statutes is repealed.

55,4010b Section 4010b. 238.308 of the statutes is created to read:

238.308 Business development tax credit. (1) Definition. In this section, "eligible employee" means a person employed in a full-time job by a person certified under sub. (2).

(2) Certification. (a) The corporation may certify a person to receive tax benefits under this section if all of the following apply:

1. The person is operating or intends to operate a business in this state.

2. The person applies under this section and enters into a contract with the corporation.

(b) The certification of a person under par. (a) may remain in effect for no more than 10 cumulative years.

(3) Eligibility for tax benefits. A person is eligible to receive tax benefits if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under sub. (2), as determined by the corporation under its policies and procedures.

(4) Awards, limits, expiration. (a) The corporation may award all of the following tax benefits to a person certified under sub. (2):

1. An amount equal to up to 10 percent of the amount of wages that the person paid to an eligible employee in the taxable year.

2. In addition to any tax benefits awarded for an eligible employee under subd. 1., an amount equal to up to 5 percent of the amount of wages that the person paid to the eligible employee in the taxable year, if the eligible employee is employed in an economically distressed area, as determined by the corporation.

3. An amount equal to up to 50 percent of the person's training costs incurred to undertake activities to enhance an eligible employee's general knowledge, employability, and flexibility in the workplace; to develop skills unique to the person's workplace or equipment; or to develop skills that will increase the quality of the person's product.

4. An amount equal to up to 3 percent of the person's personal property investment and up to 5 percent of the person's real property investment in a capital investment project, if the project involves a total capital investment of at least $1,000,000 or, if less than $1,000,000, the project involves a capital investment that is equal to at least $10,000 per eligible employee employed on the project.

5. An amount, as determined by the corporation, equal to a percentage of the amount of wages that the person paid to an eligible employee in the taxable year, if the position in which the eligible employee was employed was created or retained in connection with the person's location or retention of the person's corporate headquarters in Wisconsin and the job duties associated with the eligible employee's position involve the performance of corporate headquarters functions.

(b) Subject to a reallocation by the corporation under s. 238.15 (3) (d), the corporation may allocate up to $17,000,000 in tax benefits under this section in 2016 and up to $22,000,000 per year thereafter. Any unused allocation may be carried forward.

(5) Duties. (a) The corporation may require a person to repay any tax benefits the person claims for a year in which the person failed to employ an eligible employee required by an agreement under sub. (2) (b).

(b) The corporation shall annually verify the information submitted to it by the person claiming tax benefits under ss. 71.07 (3y), 71.28 (3y), and 71.47 (3y).

(c) The corporation shall adopt policies and procedures for the implementation and operation of this section.

55,4024q Section 4024q. 238.395 (3) (c) of the statutes is repealed.

55,4025b Section 4025b. 238.395 (3) (d) of the statutes is amended to read:

238.395 (3) (d) The corporation annually shall verify information submitted to the corporation under s. 71.07 (2di), (2dm), or (2dx), 71.28 (1di), (1dm), or (1dx), 71.47 (1di), (1dm), or (1dx), or 76.636.

55,4025e Section 4025e. 238.395 (4) (a) of the statutes is renumbered 238.395 (4).

55,4025f Section 4025f. 238.395 (4) (b) of the statutes is repealed.

55,4029 Section 4029. 238.399 (3) (a) of the statutes is amended to read: