AB208,12,76 4. "Rural enterprise development zone" means a zone designated under s.
7560.799.
AB208,12,98 5. "State payroll" means the amount of payroll apportioned to this state, as
9determined under s. 71.25 (8).
AB208,12,1510 6. "Zone payroll" means the amount of state payroll that is attributable to
11compensation paid to individuals for services that are performed in a rural
12enterprise development zone or who are working from an office located in a rural
13enterprise development zone if the work is incidental to any work that the individual
14performs within the rural enterprise development zone. "Zone payroll" does not
15include the amount of compensation paid to any individual that exceeds $100,000.
AB208,12,1816 (b) Filing claims; payroll. Subject to the limitations provided in this subsection
17and s. 560.799, a claimant may claim as a credit against the tax imposed under s.
1871.23 an amount calculated as follows:
AB208,12,1919 1. Determine the amount that is the lesser of:
AB208,12,2120 a. The claimant's zone payroll in the taxable year, minus the claimant's zone
21payroll in the base year.
AB208,12,2322 b. The claimant's state payroll in the taxable year, minus the claimant's state
23payroll in the base year.
AB208,13,224 2. Subtract the number of full-time employees that the claimant employed in
25the area that comprises the rural enterprise development zone in the base year from

1the number of full-time employees that the claimant employed in the rural
2enterprise development zone in the taxable year.
AB208,13,43 3. Multiply the amount determined under subd. 2., but not an amount less than
4zero, by $30,000.
AB208,13,65 4. Subtract the amount determined under subd. 3. from the amount
6determined under subd. 1.
AB208,13,77 5. Multiply the amount determined under subd. 4. by 7 percent.
AB208,13,118 (bm) Filing supplemental claims. In addition to the credit under par. (b) and
9subject to the limitations provided in this subsection and s. 560.799, a claimant may
10claim as a credit against the tax imposed under s. 71.23 an amount equal to all of the
11following:
AB208,13,1412 1. The amount of the property taxes that the claimant paid in the taxable year
13for the claimant's personal property that is located in a rural enterprise development
14zone.
AB208,13,1715 2. The amount of taxes imposed under subch. III of ch. 77 that the claimant paid
16in the taxable year on the purchase of tangible personal property and taxable
17services that are used or consumed primarily in a rural enterprise development zone.
AB208,13,2318 3. If all of the claimant's payroll is zone payroll and all of the claimant's
19business-related property is located in a rural enterprise development zone, the
20amount obtained by multiplying 20 percent of the sum of the claimant's zone payroll
21in the taxable year and the adjusted basis of the claimant's property at the time that
22the property is first placed in service in the rural enterprise development zone by 7.9
23percent.
AB208,14,324 4. The amount the claimant paid in the taxable year to upgrade or improve the
25skills of any of the claimant's full-time employees, to train any of the claimant's

1full-time employees on the use of new technologies, or to train any full-time
2employee whose employment with the claimant represents the employee's first
3full-time job.
AB208,14,84 (c) Limitations. 1. If the allowable amount of the claim under this subsection
5exceeds the taxes otherwise due on the claimant's income under s. 71.23, the amount
6of the claim that is not used to offset those taxes shall be certified by the department
7of revenue to the department of administration for payment by check, share draft,
8or other draft drawn from the appropriation under s. 20.835 (2) (cm).
AB208,14,169 2. Partnerships, limited liability companies, and tax-option corporations may
10not claim the credit under this subsection, but the eligibility for, and the amount of,
11the credit are based on their payment of amounts described under pars. (b) and (bm).
12A partnership, limited liability company, or tax-option corporation shall compute
13the amount of credit that each of its partners, members, or shareholders may claim
14and shall provide that information to each of them. Partners, members of limited
15liability companies, and shareholders of tax-option corporations may claim the
16credit in proportion to their ownership interests.
AB208,14,1917 3. No credit may be allowed under this subsection unless the claimant includes
18with the claimant's return a copy of the claimant's certification for tax benefits under
19s. 560.799 (5).
AB208,14,2120 (d) Administration. Subsection (4) (g) and (h), as it applies to the credit under
21sub. (4), applies to the credit under this subsection.
AB208, s. 13 22Section 13. 71.30 (3) (f) of the statutes is amended to read:
AB208,15,223 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28
24(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under

1s. 71.28 (2m), rural enterprise development zone jobs credit under s. 71.28 (3w), and
2estimated tax payments under s. 71.29.
AB208, s. 14 3Section 14. 71.34 (1) (g) of the statutes is amended to read:
AB208,15,64 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
5corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
6(3n), (3t), (3w), and (5b) and passed through to shareholders.
AB208, s. 15 7Section 15. 71.45 (2) (a) 10. of the statutes is amended to read:
AB208,15,138 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
9computed under s. 71.47 (1dd) to (1dx), (3n), (3w), and (5b) and not passed through
10by a partnership, limited liability company, or tax-option corporation that has added
11that amount to the partnership's, limited liability company's, or tax-option
12corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit
13computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB208, s. 16 14Section 16. 71.47 (3w) of the statutes is created to read:
AB208,15,1615 71.47 (3w) Rural enterprise development zone jobs credit. (a) Definitions.
16In this subsection:
AB208,15,1917 1. "Base year" means the taxable year beginning during the calendar year prior
18to the calendar year in which the rural enterprise development zone in which the
19claimant is located takes effect.
AB208,15,2120 2. "Claimant" means a person who is certified to claim tax benefits under s.
21560.799 (5) and who files a claim under this subsection.
AB208,15,2422 3. "Full-time employee" means an individual who is employed in a regular,
23nonseasonal job and who, as a condition of employment, is required to work at least
242,080 hours per year, including paid leave and holidays.
AB208,16,2
14. "Rural enterprise development zone" means a zone designated under s.
2560.799.
AB208,16,43 5. "State payroll" means the amount of payroll apportioned to this state, as
4determined under s. 71.45 (3) (b).
AB208,16,105 6. "Zone payroll" means the amount of state payroll that is attributable to
6compensation paid to individuals for services that are performed in a rural
7enterprise development zone or who are working from an office located in a rural
8enterprise development zone if the work is incidental to any work that the individual
9performs within the rural enterprise development zone. "Zone payroll" does not
10include the amount of compensation paid to any individual that exceeds $100,000.
AB208,16,1311 (b) Filing claims; payroll. Subject to the limitations provided in this subsection
12and s. 560.799, a claimant may claim as a credit against the tax imposed under s.
1371.43 an amount calculated as follows:
AB208,16,1414 1. Determine the amount that is the lesser of:
AB208,16,1615 a. The claimant's zone payroll in the taxable year, minus the claimant's zone
16payroll in the base year.
AB208,16,1817 b. The claimant's state payroll in the taxable year, minus the claimant's state
18payroll in the base year.
AB208,16,2219 2. Subtract the number of full-time employees that the claimant employed in
20the area that comprises the rural enterprise development zone in the base year from
21the number of full-time employees that the claimant employed in the rural
22enterprise development zone in the taxable year.
AB208,16,2423 3. Multiply the amount determined under subd. 2., but not an amount less than
24zero, by $30,000.
AB208,17,2
14. Subtract the amount determined under subd. 3. from the amount
2determined under subd. 1.
AB208,17,33 5. Multiply the amount determined under subd. 4. by 7 percent.
AB208,17,74 (bm) Filing supplemental claims. In addition to the credit under par. (b) and
5subject to the limitations provided in this subsection and s. 560.799, a claimant may
6claim as a credit against the tax imposed under s. 71.43 an amount equal to all of the
7following:
AB208,17,108 1. The amount of the property taxes that the claimant paid in the taxable year
9for the claimant's personal property that is located in a rural enterprise development
10zone.
AB208,17,1311 2. The amount of taxes imposed under subch. III of ch. 77 that the claimant paid
12in the taxable year on the purchase of tangible personal property and taxable
13services that are used or consumed primarily in a rural enterprise development zone.
AB208,17,1914 3. If all of the claimant's payroll is zone payroll and all of the claimant's
15business-related property is located in a rural enterprise development zone, the
16amount obtained by multiplying 20 percent of the sum of the claimant's zone payroll
17in the taxable year and the adjusted basis of the claimant's property at the time that
18the property is first placed in service in the rural enterprise development zone by 7.9
19percent.
AB208,17,2420 4. The amount the claimant paid in the taxable year to upgrade or improve the
21skills of any of the claimant's full-time employees, to train any of the claimant's
22full-time employees on the use of new technologies, or to train any full-time
23employee whose employment with the claimant represents the employee's first
24full-time job.
AB208,18,5
1(c) Limitations. 1. If the allowable amount of the claim under this subsection
2exceeds the taxes otherwise due on the claimant's income under s. 71.43, the amount
3of the claim that is not used to offset those taxes shall be certified by the department
4of revenue to the department of administration for payment by check, share draft,
5or other draft drawn from the appropriation under s. 20.835 (2) (cm).
AB208,18,136 2. Partnerships, limited liability companies, and tax-option corporations may
7not claim the credit under this subsection, but the eligibility for, and the amount of,
8the credit are based on their payment of amounts described under pars. (b) and (bm).
9A partnership, limited liability company, or tax-option corporation shall compute
10the amount of credit that each of its partners, members, or shareholders may claim
11and shall provide that information to each of them. Partners, members of limited
12liability companies, and shareholders of tax-option corporations may claim the
13credit in proportion to their ownership interests.
AB208,18,1614 3. No credit may be allowed under this subsection unless the claimant includes
15with the claimant's return a copy of the claimant's certification for tax benefits under
16s. 560.799 (5).
AB208,18,1817 (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under
18s. 71.28 (4), applies to the credit under this subsection.
AB208, s. 17 19Section 17. 71.49 (1) (f) of the statutes is amended to read:
AB208,18,2320 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47
21(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
22s. 71.47 (2m), rural enterprise development zone jobs credit under s. 71.47 (3w), and
23estimated tax payments under s. 71.48.
AB208, s. 18 24Section 18. 77.92 (4) of the statutes is amended to read:
AB208,19,15
177.92 (4) "Net business income," with respect to a partnership, means taxable
2income as calculated under section 703 of the Internal Revenue Code; plus the items
3of income and gain under section 702 of the Internal Revenue Code, including taxable
4state and municipal bond interest and excluding nontaxable interest income or
5dividend income from federal government obligations; minus the items of loss and
6deduction under section 702 of the Internal Revenue Code, except items that are not
7deductible under s. 71.21; plus guaranteed payments to partners under section 707
8(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), and (5b); and
10plus or minus, as appropriate, transitional adjustments, depreciation differences,
11and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding
12income, gain, loss, and deductions from farming. "Net business income," with respect
13to a natural person, estate, or trust, means profit from a trade or business for federal
14income tax purposes and includes net income derived as an employee as defined in
15section 3121 (d) (3) of the Internal Revenue Code.
AB208, s. 19 16Section 19. 560.799 of the statutes is created to read:
AB208,19,18 17560.799 Rural enterprise development zone. (1) Definitions. In this
18section:
AB208,19,1919 (a) "Local governing body" has the meaning given in s. 560.70 (4).
AB208,19,2020 (b) "Political subdivision" means a city, village, town, or county.
AB208,19,2221 (c) "Tax benefits" means the income and franchise tax credits under ss. 71.07
22(3c), (3e), and (3w), 71.28 (3w), and 71.47 (3w).
AB208,20,2 23(2) Application; development plan. (a) The local governing bodies of one or
24more political subdivisions may apply to the department for designation of an area
25as a rural enterprise development zone, if the proposed zone includes land within the

1boundaries of the political subdivision or political subdivisions applying for
2designation. An application shall include a development plan under par. (b).
AB208,20,33 (b) A development plan shall include all of the following:
AB208,20,64 1. A map of the proposed zone that shows the physical boundaries of the
5proposed zone, the size of the zone in acres, and the present uses and condition of land
6and structures in the proposed zone.
AB208,20,87 2. Evidence of support in the proposed zone for the proposed designation,
8including support from local government, the public, and business groups.
AB208,20,129 3. A description of the applicant's or applicants' goals for, and proposed methods
10for achieving, increased economic opportunity and expansion, infrastructure
11improvements, reduced regulatory burdens, and increased job training
12opportunities in the proposed zone.
AB208,20,1613 4. A description of current social, economic, and demographic characteristics
14of the proposed zone and of the anticipated improvements in health, human services,
15and employment that would result from designation as a rural enterprise
16development zone.
AB208,20,1817 5. A description of anticipated economic and other activity in the proposed zone,
18including industrial uses, commercial or retail uses, and residential uses.
AB208,20,2019 6. A proposal as to the time period in which the designation would remain in
20effect.
AB208,20,25 21(3) Designation of rural enterprise development zones; criteria. (a) The
22department may, upon applications by a political subdivision or political
23subdivisions, designate not more than 10 rural enterprise development zones. The
24department may designate an area as a rural enterprise development zone if all of
25the following apply:
AB208,21,1
11. The area does not exceed 5,000 acres.
AB208,21,32 2. The area does not include any part of a city of the first class or a city with
3a population greater than 200,000.
AB208,21,54 (b) In determining whether to grant an application to designate an area under
5par. (a), the department shall consider all of the following:
AB208,21,96 1. Indicators of the area's economic need, which may include data regarding
7household income, average wages, the condition of property, housing values,
8population decline, job losses, infrastructure and energy support, and the rate of
9business development.
AB208,21,1810 2. Indicators of the likelihood of success in achieving the goals under sub. (2)
11(b) 3., which may include the strength and viability of the development plan; the level
12of creativity and innovation reflected in the development plan; the strength of
13support for the proposal in the proposed zone; the existing resources available to the
14area; the effect of designation on other initiatives and programs to promote economic
15and community development in the area, including regional initiatives and
16programs; the extent to which designation will ease regulatory burdens; the extent
17to which the development plan links job creation and job training; and the extent to
18which the development plan focuses on creating high-paying jobs.
AB208,21,2119 (c) The department shall, to the extent possible, give preference to applications
20in which the areas proposed for designation have the lowest population densities and
21have, according to the indicators under par. (b) 1., the greatest economic need.
AB208,21,23 22(4) Time limits; reporting. (a) A designation under sub. (3) may remain in
23effect for no more than 12 years.
AB208,22,624 (b) If the department designates an area as a rural enterprise development
25zone under sub. (3), the governing body or bodies of the political subdivision or

1political subdivisions that applied for designation shall, during the time that the
2designation is in effect, annually submit a report to the department, in a form and
3at a time prescribed by the department, describing the political subdivision's or
4political subdivisions' progress in meeting the goals contained in the development
5plan under sub. (2) (b) 3., and any additional information required by the
6department.
AB208,22,8 7(5) Certification. The department may certify for tax benefits any of the
8following:
AB208,22,99 (a) A business that begins operations in a rural enterprise development zone.
AB208,22,1110 (b) A business that relocates to a rural enterprise development zone from
11outside this state.
AB208,22,1312 (c) A business that relocates to a rural enterprise development zone from
13another location in this state, but only if any of the following apply:
AB208,22,1714 1. The business will increase the number of full-time employees employed in
15the rural enterprise development zone by at least 10 percent, and the business enters
16into an agreement with the department to claim tax benefits only for years during
17which the business maintains the increased level of employment.
AB208,22,2218 2. The business makes a capital investment in property located in the rural
19enterprise development zone and the value of the capital investment is equal to at
20least 10 percent of the business's gross revenues in the preceding tax year, and the
21business enters into an agreement with the department to claim tax benefits only for
22years during which the business maintains the capital investment.
AB208,22,25 23(6) Other duties. (a) The department of commerce shall notify the department
24of revenue when the department of commerce certifies a business to receive tax
25benefits.
AB208,23,2
1(b) The department shall revoke a certification under sub. (5) if the business
2does any of the following:
AB208,23,33 1. Supplies false or misleading information to obtain tax benefits.
AB208,23,54 2. Leaves the rural enterprise development zone to conduct substantially the
5same business outside of the rural enterprise development zone.
AB208,23,86 3. Ceases operations in the rural enterprise development zone and does not
7renew operation of the business or a similar business in the rural enterprise
8development zone within 12 months.
AB208,23,109 (c) The department of commerce shall notify the department of revenue within
1030 days of a revocation under par. (b).
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