AB223: Bill Text

8. The estimated number of full-time jobs that will be filled by members of the target population.

9. Any other information required by the department or the Department of Revenue.

The bill requires the department to revoke a person's certification if the designation of the applicable airport development zone expires. In addition, a person's certification must be revoked if the person supplied false or misleading information to obtain the tax credits; leaves the airport development zone to conduct substantially the same business outside of the airport development zone; or ceases operations in the airport development zone and does not renew operation of the business or a similar business in the airport development zone within 12 months.

Tax credits

A person who is certified to claim tax credits based on the person's business activities in an airport development zone may claim the development zone's capital investment credit under current law. The amount of that credit is equal to 3 percent of the purchase price of depreciable, tangible personal property or 3 percent of the amount expended to acquire, construct, rehabilitate, remodel, or repair real property that is located in the development zone. In addition, the person may claim a development zone's credit under current law based on the number of full-time jobs created in the airport development zone.

Airport development zone loan program

The bill establishes a loan program to be known as the "Airport Development Zone Loan Program." Under the program, the Wisconsin Housing and Economic Development Authority (WHEDA) is authorized to award loans to a business for the purpose of financing the construction or expansion of an airport in an airport development zone, including financing activities to encourage airlines to serve the airport or to increase the number of flights to and from the airport. Under the bill, a loan's interest rate must be determined with reference to the amount required to repay the principal and interest of the bonds described below, plus the cost of issuing the bonds.

The bill provides that the program is to be funded from the proceeds of bonds issued by WHEDA in an aggregate principal amount of up to $200,000,000. The debt service on the bonds, as well as all costs associated with the issuance of the bonds, is to be paid by the businesses granted the loans under the program.

For further information see the state 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:

AB223, s. 1 Section 1. 71.07 (2dm) (a) 1. of the statutes is amended to read:

AB223,4,3 71.07 (2dm) (a) 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4).

AB223, s. 2 Section 2. 71.07 (2dm) (a) 3. of the statutes is amended to read:

AB223,4,7 71.07 (2dm) (a) 3. "Development zone" means a development opportunity zone under s. 560.795 (1) (e) and (f) or 560.798, or an airport development zone under s. 560.799.

AB223, s. 3 Section 3. 71.07 (2dm) (f) 1. of the statutes is amended to read:

AB223,4,11 71.07 (2dm) (f) 1. A copy of a verification from the department of commerce that the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4).

AB223, s. 4 Section 4. 71.07 (2dm) (j) of the statutes is amended to read:

AB223,5,6 71.07 (2dm) (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 560.795 (5) or, 560.798 (3) , or 560.799 (4) is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.

AB223, s. 5 Section 5. 71.07 (2dm) (k) of the statutes is amended to read:

AB223,5,13 71.07 (2dm) (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4) ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB223, s. 6 Section 6. 71.07 (2dx) (a) 2. of the statutes is amended to read:

AB223,5,18 71.07 (2dx) (a) 2. "Development zone" means a development zone under s. 560.70, a development opportunity zone under s. 560.795, an enterprise development zone under s. 560.797, or an agricultural development zone under s. 560.798, or an airport development zone under s. 560.799.

AB223, s. 7 Section 7. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:

AB223,5,25 71.07 (2dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone the following amounts:

AB223, s. 8 Section 8. 71.07 (2dx) (c) of the statutes is amended to read:

AB223,6,11 71.07 (2dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4) is revoked, or if the person becomes ineligible for tax benefits under s. 560.795 (3), that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

AB223, s. 9 Section 9. 71.07 (2dx) (d) of the statutes is amended to read:

AB223,6,19 71.07 (2dx) (d) Carry-over precluded. If a person who is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB223, s. 10 Section 10. 71.28 (1dm) (a) 1. of the statutes is amended to read:

AB223,6,22 71.28 (1dm) (a) 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4).

AB223, s. 11 Section 11. 71.28 (1dm) (a) 3. of the statutes is amended to read:

AB223,7,3 71.28 (1dm) (a) 3. "Development zone" means a development opportunity zone under s. 560.795 (1) (e) and (f) or 560.798, or an airport development zone under s. 560.799.

AB223, s. 12 Section 12. 71.28 (1dm) (f) 1. of the statutes is amended to read:

AB223,7,7 71.28 (1dm) (f) 1. A copy of a verification from the department of commerce that the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4).

AB223, s. 13 Section 13. 71.28 (1dm) (j) of the statutes is amended to read:

AB223,7,18 71.28 (1dm) (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 560.795 (5) or, 560.798 (3) , or 560.799 (4) is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.

AB223, s. 14 Section 14. 71.28 (1dm) (k) of the statutes is amended to read:

AB223,7,25 71.28 (1dm) (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4) ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB223, s. 15 Section 15. 71.28 (1dx) (a) 2. of the statutes is amended to read:

AB223,8,5 71.28 (1dx) (a) 2. "Development zone" means a development zone under s. 560.70, a development opportunity zone under s. 560.795, an enterprise development zone under s. 560.797, or an agricultural development zone under s. 560.798, or an airport development zone under s. 560.799.

AB223, s. 16 Section 16. 71.28 (1dx) (b) (intro.) of the statutes is amended to read:

AB223,8,12 71.28 (1dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone under this subchapter the following amounts:

AB223, s. 17 Section 17. 71.28 (1dx) (c) of the statutes is amended to read:

AB223,8,23 71.28 (1dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4) is revoked, or if the person becomes ineligible for tax benefits under s. 560.795 (3), that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

AB223, s. 18 Section 18. 71.28 (1dx) (d) of the statutes is amended to read:

AB223,9,7 71.28 (1dx) (d) Carry-over precluded. If a person who is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB223, s. 19 Section 19. 71.47 (1dm) (a) 1. of the statutes is amended to read:

AB223,9,10 71.47 (1dm) (a) 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4).

AB223, s. 20 Section 20. 71.47 (1dm) (a) 3. of the statutes is amended to read:

AB223,9,14 71.47 (1dm) (a) 3. "Development zone" means a development opportunity zone under s. 560.795 (1) (e) and (f) or 560.798, or an airport development zone under s. 560.799.

AB223, s. 21 Section 21. 71.47 (1dm) (f) 1. of the statutes is amended to read:

AB223,9,18 71.47 (1dm) (f) 1. A copy of a verification from the department of commerce that the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4).

AB223, s. 22 Section 22. 71.47 (1dm) (j) of the statutes is amended to read:

AB223,9,25 71.47 (1dm) (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 560.795 (5) or, 560.798 (3) , or 560.799 (4) is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.

AB223, s. 23 Section 23. 71.47 (1dm) (k) of the statutes is amended to read:

AB223,10,11 71.47 (1dm) (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) or, 560.798 (3), or 560.799 (4) ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB223, s. 24 Section 24. 71.47 (1dx) (a) 2. of the statutes is amended to read:

AB223,10,16 71.47 (1dx) (a) 2. "Development zone" means a development zone under s. 560.70, a development opportunity zone under s. 560.795 or an enterprise development zone under s. 560.797, or an agricultural development zone under s. 560.798, or an airport development zone under s. 560.799.

AB223, s. 25 Section 25. 71.47 (1dx) (b) (intro.) of the statutes is amended to read:

AB223,10,23 71.47 (1dx) (b) Credit. (intro.) Except or provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone under this subchapter the following amounts:

AB223, s. 26 Section 26. 71.47 (1dx) (c) of the statutes is amended to read:

AB223,11,10 71.47 (1dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4) is revoked, or if the person becomes ineligible for tax benefits under s. 560.795 (3), that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

AB223, s. 27 Section 27. 71.47 (1dx) (d) of the statutes is amended to read:

AB223,11,18 71.47 (1dx) (d) Carry-over precluded. If a person who is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or, 560.798 (3), or 560.799 (4) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB223, s. 28 Section 28. 234.03 (2m) of the statutes is amended to read:

AB223,11,21 234.03 (2m) To issue notes and bonds in accordance with ss. 234.08, 234.40, 234.50, 234.60, 234.61, 234.626, 234.63, 234.65, and 234.66.

AB223, s. 29 Section 29. 234.03 (11) of the statutes is amended to read:

AB223,12,2 234.03 (11) To collect fees and charges on mortgage loans and economic development loans and airport development loans under s. 234.63 (3) for the purpose of paying all or a portion of authority costs as the authority determines are reasonable and as approved by the authority.

AB223, s. 30 Section 30. 234.08 (1) of the statutes is amended to read:

AB223,12,17 234.08 (1) The authority may issue its negotiable notes and bonds in such principal amount, as, in the opinion of the authority, is necessary to provide sufficient funds for achieving its corporate purposes, including the purchase of certain mortgages and securities and the making of secured loans for low- and moderate-income housing, for the rehabilitation of existing structures and for the construction of facilities appurtenant thereto as provided in this chapter; for the making of secured loans to assist eligible elderly homeowners in paying property taxes and special assessments; for the payment of interest on notes and bonds of the authority during construction; for the awarding of airport development loans under s. 234.63 (3); for the establishment of reserves to secure such notes and bonds; for the provision of moneys for the housing development fund in order to make temporary loans to sponsors of housing projects as provided in this chapter; and for all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers.

AB223, s. 31 Section 31. 234.265 (2) of the statutes is amended to read:

AB223,12,25 234.265 (2) Records or portions of records consisting of personal or financial information provided by a person seeking a grant or loan under s. 234.08, 234.49, 234.59, 234.61, 234.63, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or 234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance under s. 234.66, seeking investment of funds under s. 234.03 (18m) or in which the authority has invested funds under s. 234.03 (18m), unless the person consents to disclosure of the information.

AB223, s. 32 Section 32. 234.40 (4) of the statutes is amended to read:

AB223,13,6 234.40 (4) The limitations established in ss. 234.18 (1), 234.50, 234.60, 234.61, 234.63, 234.65, and 234.66 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for veterans housing loans in an aggregate principal amount exceeding $61,945,000, excluding bonds being issued to refund outstanding bonds.

AB223, s. 33 Section 33. 234.50 (4) of the statutes is amended to read:

AB223,13,14 234.50 (4) The limitations established in ss. 234.18 (1), 234.40, 234.60, 234.61, 234.63, 234.65, and 234.66 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.

AB223, s. 34 Section 34. 234.60 (2) of the statutes is amended to read:

AB223,13,17 234.60 (2) The limitations in ss. 234.18 (1), 234.40, 234.50, 234.61, 234.63, 234.65, and 234.66 do not apply to bonds or notes issued under this section.

AB223, s. 35 Section 35. 234.61 (1) of the statutes is amended to read:

AB223,14,2 234.61 (1) Upon the authorization of the department of health and family services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health and family services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.63, 234.65, and 234.66 do not apply to bonds or notes issued under this section. The definition of "nonprofit corporation" in s. 234.01 (9) does not apply to this section.

AB223, s. 36 Section 36. 234.63 of the statutes is created to read:

AB223,14,6 234.63 Airport development zone loan program. (1) There is established a loan program to be known as the "Wisconsin Airport Development Zone Loan Program."

AB223,14,15 (2) (a) For the purpose of awarding loans under sub. (3), the authority may issue bonds in an aggregate principal amount not to exceed $200,000,000, excluding bonds issued to refund outstanding bonds issued under this paragraph. Bonds issued under this paragraph shall be special obligations of the authority payable solely out of revenues received in connection with the loan program under sub. (1), including specifically repayments of the loans awarded under sub. (3) and the proceeds of bonds issued under this paragraph. All assets and liabilities created through the issuance of bonds under this paragraph shall be separate from all other assets and liabilities of the authority.

AB223,14,17 (b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61, 234.65, and 234.66 do not apply to bonds issued under par. (a).

AB223,14,19 (c) The authority shall employ the building commission as its financial consultant to assist and coordinate the issuance of bonds under par. (a).

AB223,14,24 (3) (a) The authority may award a loan to a business, including an airport, for the purpose of financing the construction or expansion of an airport in an airport development zone established under s. 560.799, including financing activities to increase the number of flights to and from the airport or to encourage airlines that do not offer flights to and from the airport to offer such flights.

AB223,15,4 (b) The authority shall charge a rate of interest for each loan awarded under par. (a) that reasonably approximates that portion of the amount required to repay the principal and interest of the bonds issued under par. (a), plus the cost of issuing the bonds, that is allocable to the loan.

AB223, s. 37 Section 37. 234.66 (3) (b) of the statutes is amended to read: