AB40: Bill Text

AB40,1220,25 (2) (intro.) Subsection (1) does not apply if, after a hearing, the department corporation, or the local governing body under sub. (3) (a), determines that any of the following applies:

AB40,1221,3 (a) The total number of full-time jobs provided by the person in this state would be reduced if the person were not certified under s. 560.765 238.365 (3) or if the person's certification were revoked.

AB40,1221,10 (3) (a) Except as provided in pars. (b) and (c), if the economic activity for which a person is seeking certification under s. 560.765 238.365 (3) is the relocation of a business into a development zone from a location that is outside the development zone but within the limits of a city, village, town, or federally recognized American Indian reservation in which that development zone is located, the local governing body that nominated that area as a development zone under s. 560.72 238.32 shall determine whether sub. (2) (a) or (b) applies.

AB40,1221,16 (b) Only the department corporation may determine whether sub. (2) (a) or (b) applies to a business relocation described in par. (a) if the business relocation would likely result in the loss of full-time jobs at or transfer of employees from a business location that is in this state but outside the limits of any city, village, town, or federally recognized American Indian reservation in which the development zone is located.

AB40, s. 3433 Section 3433. 560.785 of the statutes is renumbered 238.385, and 238.385 (1) (intro.), (b), (bm) and (c) (intro.) and (2) (intro.), (b) and (c), as renumbered, are amended to read:

AB40,1221,25 238.385 (1) (intro.) For the development zone program under ss. 560.70 and 560.71 to 560.78 238.30 and 238.31 to 238.38, the development opportunity zone program under s. 560.795 238.395, and the enterprise development zone program under s. 560.797 238.397, the department corporation shall promulgate adopt rules that further define a person's eligibility for tax benefits. The rules shall do at least all of the following:

AB40,1222,4 (b) Allow a person to claim up to $8,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone, or as an enterprise development zone for creating a full-time job that is filled by a member of the target population.

AB40,1222,8 (bm) Allow a person to claim up to $8,000 in tax benefits during the time that an area is designated as an enterprise development zone for retaining a full-time job if the department corporation determines that the person made a significant capital investment to retain the full-time job.

AB40,1222,11 (c) (intro.) Allow a person to claim up to $6,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone, or as an enterprise development zone for any of the following:

AB40,1222,14 (2) (intro.) The department corporation may by rule specify circumstances under which the department corporation may grant exceptions to any of the following:

AB40,1222,16 (b) The requirement under ss. 560.70 238.30 (2m) and 560.797 238.397 (1) (am) that an individual's pay must equal at least 150% of the federal minimum wage.

AB40,1222,20 (c) The requirement under ss. 560.70 238.30 (2m) and 560.797 238.397 (1) (am) that an individual's position must be regular, nonseasonal, and full-time and that the individual must be required to work at least 2,080 hours per year, including paid leave and holidays.

AB40, s. 3434 Section 3434. 560.795 of the statutes is renumbered 238.395, and 238.395 (1) (a), (b), (c), (d), (e), (f), (g) and (h), (2) (c), (d) and (e), (3) (a), (b) 1., 2., 3., 4., 5., 6., 7., 8. and 9., (c) and (d), (4) (a) (intro.) and (b) and (5) (a) (intro.), 2. and 3., (b), (c), (d), (e) (intro.) and 3. and (f), as renumbered, are amended to read:

AB40,1223,3 238.395 (1) (a) An area in the city of Beloit, the legal description of which is provided to the department corporation by the local governing body of the city of Beloit.

AB40,1223,5 (b) An area in the city of West Allis, the legal description of which is provided to the department corporation by the local governing body of the city of West Allis.

AB40,1223,7 (c) An area in the city of Eau Claire, the legal description of which is provided to the department corporation by the local governing body of the city of Eau Claire.

AB40,1223,9 (d) An area in the city of Kenosha, the legal description of which is provided to the department corporation by the local governing body of the city of Kenosha.

AB40,1223,11 (e) An area in the city of Milwaukee, the legal description of which is provided to the department corporation by the local governing body of the city of Milwaukee.

AB40,1223,14 (f) For the Gateway Project, an area in the city of Beloit, the legal description of which is provided to the department corporation by the local governing body of the city of Beloit.

AB40,1223,16 (g) An area in the city of Janesville, the legal description of which is provided to the department corporation by the local governing body of the city of Janesville.

AB40,1223,18 (h) An area in the city of Kenosha, the legal description of which is provided to the department corporation by the local governing body of the city of Kenosha.

AB40,1223,21 (2) (c) Annually, the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by corporations or persons in each development opportunity zone.

AB40,1223,25 (d) 1. Notwithstanding pars. (a) and (e), the designation of an area as a development opportunity zone shall expire 90 days after the day on which the department corporation determines that the forgone tax revenues under par. (c) will equal or exceed the limit for the development opportunity zone.

AB40,1224,3 2. The department corporation shall immediately notify the local governing body of the city in which the development opportunity zone is located of a change in the expiration date of the development opportunity zone under this paragraph.

AB40,1224,10 (e) 1. The department corporation may extend the designation of an area under sub. (1) (g) as a development opportunity zone for an additional 60 months if the department corporation determines that an extension under this subdivision would support economic development within the city. If the department corporation extends the designation of the area as a development opportunity zone, the limit for tax benefits for the development opportunity zone under sub. (1) (g) is increased by $5,000,000.

AB40,1224,17 2. The department corporation may extend the designation of an area under sub. (1) (h) as a development opportunity zone for an additional 60 months if the department corporation determines that an extension under this subdivision would support economic development within the city. If the department corporation extends the designation of the area as a development opportunity zone, the limit for tax benefits for the development opportunity zone under sub. (1) (h) is increased by $5,000,000.

AB40,1224,24 (3) (a) 1. Any corporation person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (a) or (b) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department corporation no later than 6 months after April 23, 1994, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

AB40,1225,6 2. Any corporation person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (c) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department corporation no later than 6 months after April 28, 1995, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

AB40,1225,12 3. Any corporation person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (d) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department corporation no later than July 1, 2000, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

AB40,1225,18 4. Any person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (e), (f), (g), or (h) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the department corporation shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

AB40,1225,20 (b) 1. The name and address of the corporation's or person's business for which tax benefits will be claimed.

AB40,1225,22 2. The appropriate federal tax identification number of the corporation or person.

AB40,1225,25 3. The names and addresses of other locations outside of the development opportunity zone where the corporation or person conducts business and a description of the business activities conducted at those locations.

AB40,1226,3 4. The amount that the corporation or person proposes to invest in a business, or spend on the construction, rehabilitation, repair, or remodeling of a building, located within the development opportunity zone.

AB40,1226,5 5. The estimated total investment of the corporation or person in the development opportunity zone.

AB40,1226,8 6. The number of full-time jobs that will be created, retained, or substantially upgraded as a result of the corporation's or person's economic activity in relation to the amount of tax benefits estimated for the corporation or person.

AB40,1226,10 7. The corporation's or person's plans to make reasonable attempts to hire employees from the targeted population.

AB40,1226,13 8. A description of the commitment of the local governing body of the city in which the development opportunity zone is located to the corporation's or person's project.

AB40,1226,15 9. Other information required by the department corporation or the department of revenue.

AB40,1226,17 (c) The department corporation shall notify the department of revenue of all corporations or persons entitled to claim tax benefits under this subsection.

AB40,1226,20 (d) The department corporation annually shall verify information submitted to the department corporation under s. 71.07 (2di), (2dm), or (2dx), 71.28 (1di), (1dm), or (1dx), 71.47 (1di), (1dm), or (1dx), or 76.636.

AB40,1226,23 (4) (a) (intro.) The department corporation shall revoke the entitlement of a corporation or person to claim tax benefits under sub. (3) if the corporation or person does any of the following:

AB40,1226,25 (b) The department corporation shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

AB40,1227,4 (5) (a) (intro.) The department corporation may certify for tax benefits a person that is conducting economic activity in the development opportunity zone under sub. (1) (e) or (f) and that is not otherwise entitled to claim tax benefits if all of the following apply:

AB40,1227,7 2. The department corporation determines that the economic activity of the other person under subd. 1. would not have occurred but for the involvement of the person to be certified for tax benefits under this subsection.

AB40,1227,10 3. The person to be certified for tax benefits under this subsection will pass the benefits through to the other person conducting the economic activity under subd. 1., as determined by the department corporation.

AB40,1227,14 (b) A person intending to claim tax benefits under this subsection shall submit to the department corporation an application, in the form required by the department corporation, containing information required by the department corporation and by the department of revenue.

AB40,1227,16 (c) The department corporation shall notify the department of revenue of all persons certified to claim tax benefits under this subsection.

AB40,1227,19 (d) The department corporation annually shall verify information submitted to the department corporation under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.

AB40,1227,21 (e) (intro.) The department corporation shall revoke the entitlement of a person to claim tax benefits under this subsection if the person does any of the following:

AB40,1227,23 3. Does not pass the benefits through to the other person conducting the economic activity under par. (a) 1., as determined by the department corporation.

AB40,1227,25 (f) The department corporation shall notify the department of revenue within 30 days after revoking an entitlement under par. (e).

AB40, s. 3435 Section 3435. 560.797 of the statutes is renumbered 238.397, and 238.397 (1) (am), (c) and (d), (2) (a) (intro.), 3. and 4. a. and d. and (b) (intro.), 1. and 8., (bg) (intro.) and 2., (br) (intro.), (c), (d) and (e), (3) (a), (b) 4., 6. and 11. and (c), (4) (a), (c), (d), (f) and (g), (5) (a), (b), (c) and (d) 1. and 2. and (6) (a) (intro.) and (b), as renumbered, are amended to read:

AB40,1228,7 238.397 (1) (am) "Full-time job" has the meaning given in s. 560.70 238.30 (2m).

AB40,1228,8 (c) "Target population" has the meaning given in s. 560.70 238.30 (6).

AB40,1228,9 (d) "Tax benefits" has the meaning given in s. 560.70 238.30 (7).

AB40,1228,12 (2) (a) (intro.) Subject to pars. (c), (d), and (e), the department corporation may designate an area as an enterprise development zone for a project if the department corporation determines all of the following:

AB40,1228,14 3. That the project is not likely to occur or continue without the department's corporation's designation of the area as an enterprise development zone.

AB40,1228,17 4. a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under sub. (3) was submitted to the department corporation.

AB40,1228,21 d. In the 36 months immediately preceding the date on which the application under sub. (3) was submitted to the department corporation, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to s. 109.07 (1m).

AB40,1228,23 (b) (intro.) In making a determination under par. (a), the department corporation shall consider all of the following:

AB40,1228,25 1. The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.

AB40,1229,1 8. Any other factors that the department corporation considers relevant.

AB40,1229,4 (bg) (intro.) Notwithstanding par. (a) and subject to pars. (c), (d), and (e), the department corporation may designate an area as an enterprise development zone for a project if the department corporation determines all of the following:

AB40,1229,6 2. That the project is not likely to occur or continue without the department's corporation's designation of the area as an enterprise development zone.

AB40,1229,8 (br) (intro.) In making a determination under par. (bg), the department corporation shall consider all of the following:

AB40,1229,12 (c) The department corporation may not designate as an enterprise development zone, or as any part of an enterprise development zone, an area that is located within the boundaries of an area that is designated as a development opportunity zone under s. 560.795 238.395, the designation of which is in effect.

AB40,1229,16 (d) The department corporation may not designate more than 98 enterprise development zones unless the department corporation obtains the approval of the joint committee on finance to do so. Of the enterprise development zones that the department corporation designates, at least 10 shall be designated under par. (bg).

AB40,1229,18 (e) The department corporation may not designate any area as an enterprise development zone on or after March 6, 2009.

AB40,1229,22 (3) (a) A person that conducts or that intends to conduct a project and that desires to have the area in which the project is or is to be conducted designated as an enterprise development zone for the purpose of claiming tax benefits may submit to the department corporation an application and a project plan.

AB40,1230,2 (b) 4. The amount that the person proposes to invest in a business; to spend on the construction, rehabilitation, repair, or remodeling of a building; or to spend on the removal or containment of, or the restoration of soil or groundwater affected by, environmental pollution; in the area proposed to be designated as an enterprise development zone.

AB40,1230,5 6. The estimated number of full-time jobs that will be created, retained, or substantially upgraded as a result of the person's project in relation to the amount of tax benefits estimated for the person.

AB40,1230,7 11. Any other information required by the department corporation or the department of revenue.

AB40,1230,9 (c) The department corporation may not accept or approve any applications or project plans submitted under par. (a) on or after March 6, 2009.

AB40,1230,14 (4) (a) Except as provided in par. (h), if the department corporation approves a project plan under sub. (3) and designates the area in which the person submitting the project plan conducts or intends to conduct the project as an enterprise development zone under the criteria under sub. (2), the department corporation shall certify the person as eligible for tax benefits.

AB40,1230,18 (c) When the department corporation designates an area as an enterprise development zone for a project, the department corporation shall notify the governing body of any city, village, town, or federally recognized American Indian tribe or band in which the area is located of the area's designation.

AB40,1230,22 (d) The department corporation shall notify the department of revenue of all persons entitled to claim tax benefits under this section, except that the department corporation shall notify the office of the commissioner of insurance of all persons entitled to claim the credit under s. 76.636.

AB40,1230,25 (f) The tax benefits for which a person is certified as eligible under this subsection are not transferable to another person, business, or location, except to the extent permitted under section 383 of the internal revenue code.

AB40,1231,3 (g) The department corporation annually shall verify information submitted to the department corporation under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

AB40,1231,7 (5) (a) When the department corporation designates an area as an enterprise development zone under this section, the department corporation shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d) and sub. (6).

AB40,1231,10 (b) When the department corporation designates an area as an enterprise development zone under this section, the department corporation shall establish a limit, not to exceed $3,000,000, for tax benefits for the enterprise development zone.

AB40,1231,13 (c) Annually, the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each enterprise development zone.

AB40,1231,18 (d) 1. Notwithstanding the length of time specified by the department corporation under par. (a), the designation of an area as an enterprise development zone shall expire 90 days after the day on which the department corporation determines that the forgone tax revenues under par. (c) will equal or exceed the limit established for the enterprise development zone.

AB40,1231,23 2. The department corporation shall immediately notify the department of revenue and the governing body of any city, village, town, or federally recognized American Indian tribe or band in which the enterprise development zone is located of a change in the expiration date of the enterprise development zone under this paragraph.

AB40,1232,3 (6) (a) (intro.) The department corporation shall revoke the entitlement of a person to claim tax benefits under this section, and the designation of the area as an enterprise development zone shall expire, if the person does any of the following:

AB40,1232,5 (b) The department corporation shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

AB40, s. 3436 Section 3436. 560.798 of the statutes is renumbered 238.398, and 238.398 (2) (a) and (b), (3) (a) and (b), (4) (a) (intro.) and (b) and (5) (intro.) and (e), as renumbered, are amended to read:

AB40,1232,13 238.398 (2) (a) Except as provided under par. (c), the department corporation may designate one area in the state as an agricultural development zone. The area must be located in a rural municipality. An agricultural business that is located in an agricultural development zone and that is certified by the department corporation under sub. (3) is eligible for tax benefits as provided in sub. (3).

AB40,1232,24 (b) The designation of an area as an agricultural development zone shall be in effect for 10 years from the time that the department corporation first designates the area. Not more than $5,000,000 in tax benefits may be claimed in an agricultural development zone, except that the department corporation may allocate the amount of unallocated airport development zone tax credits, as provided under s. 560.7995 238.3995 (3) (b), to agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The department corporation may change the boundaries of an agricultural development zone during the time that its designation is in effect. A change in the boundaries of an agricultural development zone does not affect the duration of the designation of the area or the maximum tax benefit amount that may be claimed in the agricultural development zone.