LRB-3344/1
PJK:skg:jlb
1995 - 1996 LEGISLATURE
March 24, 1995 - Introduced by Senators Zien, Rude, Moen, Petak, Schultz,
Drzewiecki, Farrow
and Clausing, cosponsored by Representatives Kreibich,
Zukowski, Musser, Plombon, Wilder, Baldus
and Gronemus. Referred to
Joint committee on Finance.
SB122,1,5 1An Act to renumber and amend 560.795 (3) (a); to amend 71.28 (1di) (i), 71.28
2(1dj) (i), 71.28 (1dL) (i), 71.28 (1ds) (i), 71.28 (4) (am) 2., 560.795 (2) (a) and
3560.795 (2) (b) 1.; and to create 560.795 (1) (c), 560.795 (2) (b) 3. and 560.795
4(3) (a) 2. of the statutes; relating to: establishing a development opportunity
5zone.
Analysis by the Legislative Reference Bureau
Under this bill, an area in the city of Eau Claire is designated as a development
opportunity zone. For corporate income and franchise tax purposes, the
development zones investment credit, the development zones jobs credit, the
development zones location credit, the development zones sales tax credit and the
development zones additional research credit may be claimed by a person conducting
economic activity in a development opportunity zone for the period of time that an
area is designated as a development opportunity zone. Under the bill, the area in the
city of Eau Claire is designated as a development opportunity zone for 3 years, but
the designation may expire earlier if the tax benefit limit is reached earlier. The bill
limits tax benefits for the area to $3,000,000. A person desiring to claim tax benefits
must first submit a project plan to the department of development. Additionally, a
person's entitlement to tax benefits may be revoked under certain circumstances.
Under current law, an area in the city of Beloit and an area in the city of West
Allis are also designated as development opportunity zones for 3 years. Tax benefits
for the area in West Allis are limited to $3,000,000 and the bill reduces the limit on
tax benefits for the area in Beloit from $10,000,000 to $7,000,000.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB122, s. 1 1Section 1. 71.28 (1di) (i) of the statutes is amended to read:
SB122,2,92 71.28 (1di) (i) The development zones credit under this subsection, as it applies
3to a person certified under s. 560.765 (3), applies to a corporation that conducts
4economic activity in a development opportunity zone under s. 560.795 (1) and that
5is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795
6(2). A development opportunity zone credit under this paragraph may be calculated
7using expenses incurred by a claimant beginning on April 23, 1994 the effective date
8under s. 560.795 (2) (a) of the development opportunity zone designation of the area
9in which the claimant conducts economic activity
.
SB122, s. 2 10Section 2. 71.28 (1dj) (i) of the statutes is amended to read:
SB122,2,1811 71.28 (1dj) (i) The development zones credit under this subsection, as it applies
12to a person certified under s. 560.765 (3), applies to a corporation that conducts
13economic activity in a development opportunity zone under s. 560.795 (1) and that
14is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795
15(2). A development opportunity zone credit under this paragraph may be calculated
16using expenses incurred by a claimant beginning on April 23, 1994 the effective date
17under s. 560.795 (2) (a) of the development opportunity zone designation of the area
18in which the claimant conducts economic activity
.
SB122, s. 3 19Section 3. 71.28 (1dL) (i) of the statutes is amended to read:
SB122,3,620 71.28 (1dL) (i) The development zones credit under this subsection, as it
21applies to a person certified under s. 560.765 (3), applies to a corporation that

1conducts economic activity in a development opportunity zone under s. 560.795 (1)
2and that is entitled to tax benefits under s. 560.795 (3), subject to the limits under
3s. 560.795 (2). A development opportunity zone credit under this paragraph may be
4calculated using expenses incurred by a claimant beginning on April 23, 1994 the
5effective date under s. 560.795 (2) (a) of the development opportunity zone
6designation of the area in which the claimant conducts economic activity
.
SB122, s. 4 7Section 4. 71.28 (1ds) (i) of the statutes is amended to read:
SB122,3,158 71.28 (1ds) (i) The development zones credit under this subsection, as it applies
9to a person certified under s. 560.765 (3), applies to a corporation that conducts
10economic activity in a development opportunity zone under s. 560.795 (1) and that
11is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795
12(2). A development opportunity zone credit under this paragraph may be calculated
13using expenses incurred by a claimant beginning on April 23, 1994 the effective date
14under s. 560.795 (2) (a) of the development opportunity zone designation of the area
15in which the claimant conducts economic activity
.
SB122, s. 5 16Section 5. 71.28 (4) (am) 2. of the statutes is amended to read:
SB122,3,2417 71.28 (4) (am) 2. The development zones credit under subd. 1., as it applies to
18a person certified under s. 560.765 (3), applies to a corporation that conducts
19economic activity in a development opportunity zone under s. 560.795 (1) and that
20is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795
21(2). A development opportunity zone credit under this subdivision may be calculated
22using expenses incurred by a claimant beginning on April 23, 1994 the effective date
23under s. 560.795 (2) (a) of the development opportunity zone designation of the area
24in which the claimant conducts economic activity
.
SB122, s. 6 25Section 6. 560.795 (1) (c) of the statutes is created to read:
SB122,4,2
1560.795 (1) (c) An area in the city of Eau Claire, the legal description of which
2is provided to the department by the local governing body of the city of Eau Claire.
SB122, s. 7 3Section 7. 560.795 (2) (a) of the statutes is amended to read:
SB122,4,84 560.795 (2) (a) Except as provided in par. (d), the designation of each area under
5sub. (1) as a development opportunity zone shall be effective for 36 months, with the
6designation of the areas under sub. (1) (a) and (b)
beginning on April 23, 1994, and
7the designation of the area under sub. (1) (c) beginning on the effective date of this
8paragraph .... [revisor inserts date]
.
SB122, s. 8 9Section 8. 560.795 (2) (b) 1. of the statutes is amended to read:
SB122,4,1110 560.795 (2) (b) 1. The limit for tax benefits for the development opportunity
11zone under sub. (1) (a) is $10,000,000 $7,000,000.
SB122, s. 9 12Section 9. 560.795 (2) (b) 3. of the statutes is created to read:
SB122,4,1413 560.795 (2) (b) 3. The limit for tax benefits for the development opportunity
14zone under sub. (1) (c) is $3,000,000.
SB122, s. 10 15Section 10. 560.795 (3) (a) of the statutes is renumbered 560.795 (3) (a) 1. and
16amended to read:
SB122,4,2217 560.795 (3) (a) 1. Any corporation that is conducting or that intends to conduct
18economic activity in a development opportunity zone under sub. (1) (a) or (b) and
19that, in conjunction with the local governing body of the city in which the
20development opportunity zone is located, submits a project plan as described in par.
21(b) to the department no later than 6 months after April 23, 1994, shall be entitled
22to claim tax benefits while the area is designated as a development opportunity zone.
SB122, s. 11 23Section 11. 560.795 (3) (a) 2. of the statutes is created to read:
SB122,5,524 560.795 (3) (a) 2. Any corporation that is conducting or that intends to conduct
25economic activity in a development opportunity zone under sub. (1) (c) and that, in

1conjunction with the local governing body of the city in which the development
2opportunity zone is located, submits a project plan as described in par. (b) to the
3department no later than 6 months after the effective date of this subdivision ....
4[revisor inserts date], shall be entitled to claim tax benefits while the area is
5designated as a development opportunity zone.
SB122,5,66 (End)
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