2009 - 2010 LEGISLATURE
February 18, 2009 - Introduced by Senators Lassa, Vinehout, Sullivan, Lehman,
Robson, Kapanke, Cowles, Harsdorf, Darling, Taylor, Schultz, Hopper
and
Hansen, cosponsored by Representatives Garthwaite, Strachota, Berceau,
Mason, Townsend, Sinicki, Vos, Hintz, Hraychuck, Staskunas, Soletski,
Molepske Jr., Hilgenberg
and Roys. Referred to Committee on Economic
Development.
SB77,2,6 1An Act to repeal 49.149 (4), 234.63, 560.605 (2m) (g) and 560.605 (7) (e); to
2renumber
71.30 (3) (em), 71.30 (3) (emb), 71.30 (3) (en), 71.30 (3) (eo), 71.30 (3)
3(eom), 71.49 (1) (em), 71.49 (1) (emb), 71.49 (1) (en), 71.49 (1) (eo) and 71.49 (1)
4(eom); to renumber and amend 560.70 (2m) and 560.7995 (4) (b); to amend
513.94 (4) (a) 1., 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a) 4., 71.34
6(1k) (g), 71.45 (2) (a) 10., 76.67 (2), 77.92 (4), 234.01 (4n) (a) 3m. e., 234.03 (2m),
7234.03 (11), 234.08 (1), 234.265 (2), 234.40 (4), 234.50 (4), 234.60 (2), 234.61 (1),
8560.70 (7) (a), 560.74 (1), 560.745 (1) (b), 560.745 (2) (am), 560.78 (3) (a), 560.785
9(1) (intro.), 560.797 (2) (a) (intro.), 560.797 (2) (bg) (intro.), 560.797 (4) (a),
10560.798 (2) (a), 560.798 (3) (a), 560.7995 (2) (a) (intro.), 560.84 (2) (c) 2., 560.96
11(2) (a) and 560.96 (3) (a) (intro.); to repeal and recreate subchapter VI (title)
12of chapter 560 [precedes s. 560.70]; and to create 13.94 (1) (ms), 71.07 (2dy),
1371.10 (4) (gv), 71.28 (1dy), 71.30 (3) (ema), 71.47 (1dy), 71.49 (1) (ema), 76.637,
14560.70 (2g), 560.70 (2m) (b), 560.70 (4m), 560.70 (7) (d), 560.701, 560.702,

1560.703, 560.704, 560.705, 560.706, 560.71 (4), 560.737 (4), 560.74 (6), 560.78
2(1m), 560.78 (3) (c), 560.797 (2) (e), 560.797 (3) (c), 560.797 (4) (h), 560.798 (2)
3(c), 560.798 (3) (c), 560.7995 (2) (e), 560.7995 (4) (ar), 560.7995 (4) (b) 2., 560.96
4(2) (c) and 560.96 (3) (e) of the statutes; relating to: changes to economic
5development tax benefit programs, providing an exemption from emergency
6rule procedures, and requiring the exercise of rule-making authority.
Analysis by the Legislative Reference Bureau
Consolidation of economic development zone programs
Under current law, the Department of Commerce (Commerce) may designate
a portion of the state as a development zone, a development opportunity zone, an
enterprise development zone, an agricultural development zone, an enterprise zone,
an airport development zone, or a technology zone. Commerce may also certify
persons who agree to undertake certain eligible activities in one of the designated
zones. Eligible activities include job creation, environmental remediation, and
capital investment. Persons who obtain certification are then eligible for tax
benefits.
This bill consolidates the development zones, enterprise development zones,
agricultural development zones, technology zones, and airport development zones
(five development zone programs) into a program that provides tax benefits to
persons who enter into a contract with Commerce to undertake eligible activities
anywhere in the state. Eligible activities under the bill include all of the following:
1. Job creation projects that result in the creation and maintenance of jobs
paying wages and providing benefits at a level approved by Commerce.
2. Projects that involve a significant investment of capital, as defined by
Commerce by rule, by the person in new equipment, machinery, real property, or
depreciable personal property.
3. Projects that involve significant investments in the training or reeducation
of employees, as defined by Commerce by rule, for the purpose of improving the
productivity or competitiveness of the business of the person.
4. Projects that will result in the location or retention of a person's corporate
headquarters in Wisconsin or that will result in the retention of employees if the
person's corporate headquarters are located in Wisconsin.
Commerce may allocate tax benefits under the consolidated program up to the
total amount remaining to be allocated under the five development zone programs
on the effective date of this bill. Tax benefits are allocated under the bill only after
the person has verified to Commerce that the person has met the performance
obligations established under the contract.

The value of tax benefits for which a person is eligible under the new tax credit
program depends on the number of jobs created by the person, the amount of the
capital investment made by the person, the amount of training or reeducation
provided to the employees of a person, or the number of jobs retained by the person
having its corporate headquarters located in Wisconsin.
Under the bill, Commerce may award additional tax benefits to a person that
conducts eligible activities in an economically distressed area or if the eligible
activities benefit members of a target group. Commerce is required by the bill to
develop a methodology for designating an area as an "economically distressed area."
The bill defines "member of a target group" as a person who resides in an area
designated by the federal government as an economic revitalization area, a person
who is employed in an unsubsidized job but meets certain eligibility requirements
for a Wisconsin Works employment position, a person who is employed in a trial job
or in a real work real pay project position, a person who is eligible for child care
assistance, a person who is a vocational rehabilitation referral, an economically
disadvantaged youth, an economically disadvantaged veteran, a supplemental
security income recipient, a general assistance recipient, an economically
disadvantaged ex-convict, a dislocated worker, as defined under federal law, or a
food stamp recipient, if the person has been certified by a designated local agency.
Audit by the Legislative Audit Bureau
The bill requires the Legislative Audit Bureau to prepare a financial and
program evaluation audit of the consolidated economic development tax benefit
program created by the bill no later than July 1, 2014.
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:
SB77, s. 1 1Section 1. 13.94 (1) (ms) of the statutes is created to read:
SB77,3,52 13.94 (1) (ms) No later than July 1, 2014, prepare a financial and performance
3evaluation audit of the economic development tax benefit program under ss. 560.701
4to 560.706. The legislative audit bureau shall file a copy of the report of the audit
5under this paragraph with the distributees specified in par. (b).
SB77, s. 2 6Section 2. 13.94 (4) (a) 1. of the statutes is amended to read:
SB77,4,147 13.94 (4) (a) 1. Every state department, board, examining board, affiliated
8credentialing board, commission, independent agency, council or office in the

1executive branch of state government; all bodies created by the legislature in the
2legislative or judicial branch of state government; any public body corporate and
3politic created by the legislature including specifically the Fox River Navigational
4System Authority, the Lower Fox River Remediation Authority, and the Wisconsin
5Aerospace Authority, a professional baseball park district, a local professional
6football stadium district, a local cultural arts district and a long-term care district
7under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every
8provider of medical assistance under subch. IV of ch. 49; technical college district
9boards; development zones designated under s. 560.71; every county department
10under s. 51.42 or 51.437; every nonprofit corporation or cooperative or
11unincorporated cooperative association to which moneys are specifically
12appropriated by state law; and every corporation, institution, association or other
13organization which receives more than 50% of its annual budget from appropriations
14made by state law, including subgrantee or subcontractor recipients of such funds.
SB77, s. 3 15Section 3. 49.149 (4) of the statutes is repealed.
SB77, s. 4 16Section 4. 71.05 (6) (a) 15. of the statutes is amended to read:
SB77,4,2217 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
18(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3s), (3t), (3w),
19(5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited
20liability company, or tax-option corporation that has added that amount to the
21partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
2271.34 (1k) (g).
SB77, s. 5 23Section 5. 71.07 (2dy) of the statutes is created to read:
SB77,5,3
171.07 (2dy) Economic development tax credit. (a) Definition. In this
2subsection, "claimant" means a person who files a claim under this subsection and
3is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.
SB77,5,74 (b) Filing claims. Subject to the limitations under this subsection and ss.
5560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant
6may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the
7amount of the tax, the amount authorized for the claimant under s. 560.703.
SB77,5,118 (c) Limitations. 1. No credit may be allowed under this subsection unless the
9claimant includes with the claimant's return a copy of the claimant's certification
10under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax
11benefits under s. 560.703 (3).
SB77,5,1912 2. Partnerships, limited liability companies, and tax-option corporations may
13not claim the credit under this subsection, but the eligibility for, and the amount of,
14the credit are based on their authorization to claim tax benefits under s. 560.703.
15A partnership, limited liability company, or tax-option corporation shall compute
16the amount of credit that each of its partners, members, or shareholders may claim
17and shall provide that information to each of them. Partners, members of limited
18liability companies, and shareholders of tax-option corporations may claim the
19credit in proportion to their ownership interests.
SB77,5,2220 (d) Administration. 1. Except as provided in subd. 2., section 71.28 (4) (e) and
21(f), as it applies to the credit under s. 71.28 (4), applies to the credit under this
22subsection.
SB77,6,623 2. If a claimant's certification is revoked under s. 560.705, or if a claimant
24becomes ineligible for tax benefits under s. 560.702, the claimant may not claim
25credits under this subsection for the taxable year that includes the day on which the

1certification is revoked; the taxable year that includes the day on which the claimant
2becomes ineligible for tax benefits; or succeeding taxable years and the claimant may
3not carry over unused credits from previous years to offset the tax imposed under s.
471.02 or 71.08 for the taxable year that includes the day on which certification is
5revoked; the taxable year that includes the day on which the claimant becomes
6ineligible for tax benefits; or succeeding taxable years.
SB77,6,87 3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
8applies to the credit under this subsection.
SB77, s. 6 9Section 6. 71.08 (1) (intro.) of the statutes is amended to read:
SB77,6,1910 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
11couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
12ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (2fd), (3m), (3n),
13(3p), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di),
14(1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w), and 71.47 (1dd),
15(1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w), and
16subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the
17tax under this section, there is imposed on that natural person, married couple filing
18jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax
19computed as follows:
SB77, s. 7 20Section 7. 71.10 (4) (gv) of the statutes is created to read:
SB77,6,2121 71.10 (4) (gv) Economic development tax credit under s. 71.07 (2dy).
SB77, s. 8 22Section 8. 71.21 (4) of the statutes is amended to read:
SB77,7,223 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
24(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f),

1(5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added to the
2partnership's income.
SB77, s. 9 3Section 9. 71.26 (2) (a) 4. of the statutes is amended to read:
SB77,7,94 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
5(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3t), (3w), (5e),
6(5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited
7liability company, or tax-option corporation that has added that amount to the
8partnership's, limited liability company's, or tax-option corporation's income under
9s. 71.21 (4) or 71.34 (1k) (g).
SB77, s. 10 10Section 10. 71.28 (1dy) of the statutes is created to read:
SB77,7,1311 71.28 (1dy) Economic development tax credit. (a) Definition. In this
12subsection, "claimant" means a person who files a claim under this subsection and
13is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.
SB77,7,1714 (b) Filing claims. Subject to the limitations under this subsection and ss.
15560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant
16may claim as a credit against the tax imposed under s. 71.23, up to the amount of the
17tax, the amount authorized for the claimant under s. 560.703.
SB77,7,2118 (c) Limitations. 1. No credit may be allowed under this subsection unless the
19claimant includes with the claimant's return a copy of the claimant's certification
20under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax
21benefits under s. 560.703 (3).
SB77,8,422 2. Partnerships, limited liability companies, and tax-option corporations may
23not claim the credit under this subsection, but the eligibility for, and the amount of,
24the credit are based on their authorization to claim tax benefits under s. 560.703.
25A partnership, limited liability company, or tax-option corporation shall compute

1the amount of credit that each of its partners, members, or shareholders may claim
2and shall provide that information to each of them. Partners, members of limited
3liability companies, and shareholders of tax-option corporations may claim the
4credit in proportion to their ownership interests.
SB77,8,65 (d) Administration. 1. Except as provided in subd. 2., sub. (4) (e) and (f), as it
6applies to the credit under sub. (4), applies to the credit under this subsection.
SB77,8,157 2. If a claimant's certification is revoked under s. 560.705, or if a claimant
8becomes ineligible for tax benefits under s. 560.702, the claimant may not claim
9credits under this subsection for the taxable year that includes the day on which the
10certification is revoked; the taxable year that includes the day on which the claimant
11becomes ineligible for tax benefits; or succeeding taxable years and the claimant may
12not carry over unused credits from previous years to offset the tax imposed under s.
1371.23 for the taxable year that includes the day on which certification is revoked; the
14taxable year that includes the day on which the claimant becomes ineligible for tax
15benefits; or succeeding taxable years.
SB77,8,1716 3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
17to the credit under this subsection.
SB77, s. 11 18Section 11. 71.30 (3) (em) of the statutes is renumbered 71.30 (3) (eh).
SB77, s. 12 19Section 12. 71.30 (3) (ema) of the statutes is created to read:
SB77,8,2020 71.30 (3) (ema) Economic development tax credit under s. 71.28 (1dy).
SB77, s. 13 21Section 13. 71.30 (3) (emb) of the statutes is renumbered 71.30 (3) (ei).
SB77, s. 14 22Section 14. 71.30 (3) (en) of the statutes is renumbered 71.30 (3) (ej).
SB77, s. 15 23Section 15. 71.30 (3) (eo) of the statutes is renumbered 71.30 (3) (ek).
SB77, s. 16 24Section 16. 71.30 (3) (eom) of the statutes is renumbered 71.30 (3) (eL).
SB77, s. 17 25Section 17. 71.34 (1k) (g) of the statutes is amended to read:
SB77,9,4
171.34 (1k) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
3(3), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed
4through to shareholders.
SB77, s. 18 5Section 18. 71.45 (2) (a) 10. of the statutes is amended to read:
SB77,9,116 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
7computed under s. 71.47 (1dd) to (1dx) (1dy), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h),
8(5i), (5j), and (5k) and not passed through by a partnership, limited liability company,
9or tax-option corporation that has added that amount to the partnership's, limited
10liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
11(g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
SB77, s. 19 12Section 19. 71.47 (1dy) of the statutes is created to read:
SB77,9,1513 71.47 (1dy) Economic development tax credit. (a) Definition. In this
14subsection, "claimant" means a person who files a claim under this subsection and
15is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.
SB77,9,1916 (b) Filing claims. Subject to the limitations under this subsection and ss.
17560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant
18may claim as a credit against the tax imposed under s. 71.43, up to the amount of the
19tax, the amount authorized for the claimant under s. 560.703.
SB77,9,2320 (c) Limitations. 1. No credit may be allowed under this subsection unless the
21claimant includes with the claimant's return a copy of the claimant's certification
22under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax
23benefits under s. 560.703 (3).
SB77,9,2524 2. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

1the credit are based on their authorization to claim tax benefits under s. 560.703.
2A partnership, limited liability company, or tax-option corporation shall compute
3the amount of credit that each of its partners, members, or shareholders may claim
4and shall provide that information to each of them. Partners, members of limited
5liability companies, and shareholders of tax-option corporations may claim the
6credit in proportion to their ownership interests.
SB77,10,87 (d) Administration. 1. Except as provided in subd. 2., sub. (4) (e) and (f), as it
8applies to the credit under sub. (4), applies to the credit under this subsection.
SB77,10,179 2. If a claimant's certification is revoked under s. 560.705, or if a claimant
10becomes ineligible for tax benefits under s. 560.702, the claimant may not claim
11credits under this subsection for the taxable year that includes the day on which the
12certification is revoked; the taxable year that includes the day on which the claimant
13becomes ineligible for tax benefits; or succeeding taxable years and the claimant may
14not carry over unused credits from previous years to offset the tax imposed under s.
1571.43 for the taxable year that includes the day on which certification is revoked; the
16taxable year that includes the day on which the claimant becomes ineligible for tax
17benefits; or succeeding taxable years.
SB77,10,1918 3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
19to the credit under this subsection.
SB77, s. 20 20Section 20. 71.49 (1) (em) of the statutes is renumbered 71.49 (1) (eh).
SB77, s. 21 21Section 21. 71.49 (1) (ema) of the statutes is created to read:
SB77,10,2222 71.49 (1) (ema) Economic development tax credit under s. 71.47 (1dy).
SB77, s. 22 23Section 22. 71.49 (1) (emb) of the statutes is renumbered 71.49 (1) (ei).
SB77, s. 23 24Section 23. 71.49 (1) (en) of the statutes is renumbered 71.49 (1) (ej).
SB77, s. 24 25Section 24. 71.49 (1) (eo) of the statutes is renumbered 71.49 (1) (ek).
SB77, s. 25
1Section 25. 71.49 (1) (eom) of the statutes is renumbered 71.49 (1) (eL).
SB77, s. 26 2Section 26. 76.637 of the statutes is created to read:
SB77,11,5 376.637 Economic development tax credit. (1) Definition. In this section,
4"claimant" means an insurer who files a claim under this section and is certified
5under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.
SB77,11,9 6(2) Filing claims. Subject to the limitations under this section and ss. 560.701
7to 560.706, for taxable years beginning after December 31, 2008, a claimant may
8claim as a credit against the fees due under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the
9amount authorized for the claimant under s. 560.703.
SB77,11,13 10(3) Limitations. No credit may be allowed under this section unless the insurer
11includes with the insurer's annual return under s. 76.64 a copy of the claimant's
12certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to
13receive tax benefits under s. 560.703 (3).
SB77,11,23 14(4) Administration. If an insurer's certification is revoked under s. 560.705,
15or if an insurer becomes ineligible for tax benefits under s. 560.702, the insurer may
16not claim credits under this section for the taxable year that includes the day on
17which the certification is revoked; the taxable year that includes the day on which
18the insurer becomes ineligible for tax benefits; or succeeding taxable years and the
19insurer may not carry over unused credits from previous years to offset the fees
20imposed under ss. 76.60, 76.63, 76.65, 76.66, or 76.67 for the taxable year that
21includes the day on which certification is revoked; the taxable year that includes the
22day on which the insurer becomes ineligible for tax benefits; or succeeding taxable
23years.
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