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3Section
36. 234.63 of the statutes is created to read:
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4234.63 Airport development zone loan program. (1) There is established
5a loan program to be known as the "Wisconsin Airport Development Zone Loan
6Program."
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7(2) (a) For the purpose of awarding loans under sub. (3), the authority may
8issue bonds in an aggregate principal amount not to exceed $200,000,000, excluding
9bonds issued to refund outstanding bonds issued under this paragraph. Bonds
10issued under this paragraph shall be special obligations of the authority payable
11solely out of revenues received in connection with the loan program under sub. (1),
12including specifically repayments of the loans awarded under sub. (3) and the
13proceeds of bonds issued under this paragraph. All assets and liabilities created
14through the issuance of bonds under this paragraph shall be separate from all other
15assets and liabilities of the authority.
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(b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61, 234.65, and
17234.66 do not apply to bonds issued under par. (a).
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(c) The authority shall employ the building commission as its financial
19consultant to assist and coordinate the issuance of bonds under par. (a).
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20(3) (a) The authority may award a loan to a business for the purpose of
21financing the construction or expansion of an airport in an airport development zone
22established under s. 560.799, including financing activities to increase the number
23of flights to and from the airport or to encourage airlines that do not offer flights to
24and from the airport to offer such flights.
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1(b) The authority shall charge a rate of interest for each loan awarded under
2par. (a) that reasonably approximates that portion of the amount required to repay
3the principal and interest of the bonds issued under par. (a), plus the cost of issuing
4the bonds, that is allocable to the loan.
SB444, s. 37
5Section
37. 234.66 (3) (b) of the statutes is amended to read:
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234.66
(3) (b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61
,
7234.63, and 234.65 do not apply to bonds or notes issued under this section.
SB444, s. 38
8Section
38. 560.799 of the statutes is created to read:
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9560.799 Airport development zones. (1) Definitions. In this section:
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(a) "Airport development project" means the construction or expansion of an
11airport in this state.
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(b) "Full-time job" has the meaning given in s. 560.70 (2m).
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(c) "Target population" has the meaning given in s. 560.70 (6).
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(d) "Tax benefits" has the meaning given in s. 560.70 (7).
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15(2) Designation of an airport development zone. (a) Subject to par. (c), the
16department may designate an area as an airport development zone if the department
17determines all of the following:
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1. That an airport development project is desired for the area, as evidenced by
19a resolution of the governing body of each city, village, and town in which territory
20of the airport development zone will be located.
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2. That the airport development project serves a public purpose.
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3. That the airport development project will likely retain or increase
23employment in the state.
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4. That the airport development project is not likely to occur or continue
25without the department's designation of the area as an airport development zone.
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15. That the airport development project will likely positively affect the area.
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(b) In making a determination under par. (a), the department shall consider all
3of the following:
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1. The extent of poverty, unemployment, or other factors contributing to
5general economic hardship in the area.
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2. The prospects for new investment and economic development in the area.
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3. The amount of investment that is likely to result from the airport
8development project.
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4. The number of full-time jobs that are likely to be created as a result of the
10airport development project.
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5. The number of full-time jobs that are likely to be available to the target
12population as a result of the project.
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6. The competitive effect of designating the area as an airport development
14zone on other businesses in the area.
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7. The needs of other areas of the state.
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8. Any other factors that the department considers relevant.
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(c) The department may not designate as an airport development zone, or as
18any part of an airport development zone, an area that is located within the
19boundaries of an area that is designated as a development zone under s. 560.71, as
20a development opportunity zone under s. 560.795, or as an enterprise development
21zone under s. 560.797.
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22(3) Duration of designation; limits on tax benefits. (a) When the department
23designates an area as an airport development zone, the department shall specify the
24length of time, not to exceed 84 months, that the designation is effective, subject to
25par. (d). The department shall notify each person certified for tax benefits in an
1airport development zone, the Department of Revenue, the Wisconsin Housing and
2Economic Development Authority, and the governing body of each city, village, town,
3and federally recognized American Indian tribe or band in which territory of the
4airport development zone is located of the designation of and expiration date of the
5airport development zone.
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(b) When the department designates an area as an airport development zone,
7the department shall establish a limit, not to exceed $3,000,000, for tax benefits
8applicable to the airport development zone.
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(c) Annually, the department shall estimate the amount of forgone state
10revenue because of tax benefits claimed by persons in each airport development zone.
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(d) 1. Notwithstanding the length of time specified by the department under
12par. (a), the designation of an area as an airport development zone shall expire 90
13days after the day on which the department determines that the forgone tax
14revenues estimated under par. (c) will equal or exceed the limit established for the
15airport development zone.
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2. The department shall immediately notify each person certified for tax
17benefits in an airport development zone, the Department of Revenue, the Wisconsin
18Housing and Economic Development Authority, and the governing body of each city,
19village, town, and federally recognized American Indian tribe or band in which
20territory of the airport development zone is located of a change in the expiration date
21of the airport development zone under this paragraph.
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22(4) Certification for tax benefits. (a) A person that intends to operate a place
23of business in an airport development zone may submit to the department an
24application and a business plan. The business plan shall include all of the following:
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11. The name and address of the person's business for which tax benefits will be
2claimed.
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2. The appropriate Wisconsin tax identification number of the person.
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3. The names and addresses of other locations outside of the airport
5development zone where the person conducts business and a description of the
6business activities conducted at those locations.
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4. The amount that the person proposes to invest in the place of business or to
8spend on the construction, rehabilitation, repair, or remodeling of a building in the
9airport development zone.
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5. The estimated total investment of the person in the airport development
11zone.
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6. The estimated number of full-time jobs that will be created, retained, or
13substantially upgraded as a result of the person's place of business in the airport
14development zone in relation to the amount of tax benefits estimated for the person.
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7. The person's plans to make reasonable attempts to hire employees from the
16target population.
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8. The estimated number of full-time jobs that will be filled by members of the
18target population.
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10. Any other information required by the department or the Department of
20Revenue.
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(b) If the department approves a business plan under par. (a), the department
22shall certify the person as eligible for tax benefits. The department shall notify the
23Department of Revenue within 30 days of certifying a person under this paragraph.
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1(c) The department shall revoke a person's certification under par. (b) when the
2designation of the applicable airport development zone expires or if the person does
3any of the following:
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1. Supplies false or misleading information to obtain the tax benefits.
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2. Leaves the airport development zone to conduct substantially the same
6business outside of the airport development zone.
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3. Ceases operations in the airport development zone and does not renew
8operation of the business or a similar business in the airport development zone
9within 12 months.
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(d) The department shall notify the Department of Revenue within 30 days
11after revoking a certification under par. (c).
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(e) The tax benefits for which a person is certified as eligible under par. (b) are
13not transferable to another person, business, or location, except to the extent
14permitted under section
383 of the Internal Revenue Code.
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15(5) Verification of information. The department annually shall verify
16information submitted to the department under ss. 71.07 (2dm) and (2dx), 71.28
17(1dm) and (1dx), and 71.47 (1dm) and (1dx) as it relates to airport development zones.
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(1) The treatment of sections 71.07 (2dm) (a) 1. and 3., (f) 1., (j), and (k), and
20(2dx) (a) 2., (b) (intro.), (c), and (d), 71.28 (1dm) (a) 1. and 3., (f) 1., (j), and (k), and
21(1dx) (a) 2., (b) (intro.), (c), and (d), and 71.47 (1dm) (a) 1. and 3., (f) 1., (j), and (k),
22and (1dx) (a) 2., (b) (intro.), (c), and (d) of the statutes first applies to taxable years
23beginning on January 1, 2005.