Wisconsin Legislature: A1079

1070202 April 9, 1996

1071203 April 9, 1996

1072204 April 9, 1996

1073205 April 9, 1996

1074206 April 9, 1996

1075207 April 9, 1996

707208 April 10, 1996

1033 (partial veto) 209 April 10, 1996

652210 April 10, 1996

590211 April 10, 1996

736212 April 10, 1996

808213 April 10, 1996

Respectfully submitted,

Tommy G. Thompson

Governor

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Governor's Veto Message

April 10, 1996

To the Honorable Members of the Assembly:

I have approved 1995 Assembly Bill 1033 as 1995 Wisconsin Act 209 and have deposited it in the office of the Secretary of State. I have exercised the partial veto in sections 14 and 83.

AB 1033 expands the Development Zone program by authorizing the Department of Development to designate an additional four zones and $7 million in tax credits to qualifying businesses. Furthermore, the bill makes the program more flexible by expanding tax credits and eliminating review requirements. I support this program and my objections to this bill are predominately technical in nature. I believe that these vetoes do not change the substance of the bill.

Section 14 expands a five percent research credit for enterprises in development zones from C corporations to individuals operating as sole proprietors. The intent was to make the research credit available to any business, independent of its organizational form. However, as drafted, this section prohibits the expansion of the research credit to partnerships, limited liability companies, and tax option corporations. I am partially vetoing this section.

Section 83 allows the creation of development zones comprised of up to two counties if the area*s total population does not exceed 75,000. I am partially vetoing this provision to eliminate the limitation to two counties. Allowing counties to form development zones was intended to create more flexibility for local governing bodies and to benefit small rural counties. However, the limitation to two counties counteracts this intent. By maintaining the population limits in any multi-county development zone, it is guaranteed that small rural counties can benefit from this new development zone option.

I believe these vetoes clarify provisions of the bill and do not change the intent of the legislation.

I am concerned about the workability of some of the language in the bill regarding the research credit and the jobs credit. I am directing the Department of Development and the Department of Revenue to work together to develop a proposal for the 1997-99 biennial budget to clarify and improve the workability of the provisions.

Respectfully submitted,

Tommy G. Thompson

Governor

__________________

A1079 Communications

State of Wisconsin
Office of the Secretary of State
Madison

April 10, 1996

To Whom It May Concern:

Acts, Joint Resolutions and Resolutions deposited in this office have been numbered and published as follows:

Bill Number Act Number Publication Date

Assembly Bill 1070202April 12, 1996

Assembly Bill 1071203April 12, 1996