AB40: Bill Text

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.

AB40,1233,6 (3) (a) Except as provided under par. (c), the department corporation may certify for tax benefits in an agricultural development zone a new or expanding agricultural business that is located in the agricultural development zone. In determining whether to certify a business under this subsection, the department corporation shall consider, among other things, the number of jobs that will be created or retained by the business.

AB40,1233,12 (b) When the department corporation certifies an agricultural business under this subsection, the department corporation shall establish a limit on the amount of tax benefits that the business may claim. The department corporation shall enter into an agreement with the business that specifies the limit on the amount of tax benefits that the business may claim and reporting requirements with which the business must comply.

AB40,1233,14 (4) (a) (intro.) The department of commerce corporation shall notify the department of revenue of all the following:

AB40,1233,17 (b) The department corporation shall annually 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.

AB40,1233,19 (5) (intro.) The department corporation shall promulgate adopt rules for the operation of this section, including rules related to all the following:

AB40,1233,21 (e) The exchange of information between the department of commerce corporation and the department of revenue.

AB40, s. 3437 Section 3437. 560.799 of the statutes is renumbered 238.399, and 238.399 (1) (am) 2., (3) (a), (b) (intro.), (bm) and (c), (5) (intro.), (b), (c) 1. a. and b., 2. b. and c., (d) 1. and (e), (5m) and (6) (a), (b) (intro.), (c), (d), (e), (f) and (g) (intro.) and 1. (intro.), as renumbered, are amended to read:

AB40,1234,6 238.399 (1) (am) 2. The department corporation may by rule specify circumstances under which the department corporation may grant exceptions to the requirement under subd. 1. that a full-time employee means an individual who, as a condition of employment, is required to work at least 2,080 hours per year, but under no circumstances may a full-time employee mean an individual who, as a condition of employment, is required to work less than 37.5 hours per week.

AB40,1234,8 (3) Designation of enterprise zones; criteria. (a) The department corporation may designate not more than 12 enterprise zones.

AB40,1234,10 (b) (intro.) In determining whether to designate an area under par. (a), the department corporation shall consider all of the following:

AB40,1234,13 (bm) The department corporation shall specify whether an enterprise zone designated under par. (a) is located in a tier I county or municipality or a tier II county or municipality.

AB40,1234,15 (c) The department corporation shall, to the extent possible, give preference to the greatest economic need.

AB40,1234,17 (5) Certification. (intro.) The department corporation may certify for tax benefits any of the following:

AB40,1234,21 (b) A business that relocates to an enterprise zone from outside this state, if the business offers compensation and benefits to its employees working in the zone for the same type of work that are at least as favorable as those offered to its employees working outside the zone, as determined by the department corporation.

AB40,1234,24 (c) 1. a. The business enters into an agreement with the department corporation to claim tax benefits only for years during which the business maintains the increased level of personnel.

AB40,1235,4 b. The business offers compensation and benefits for the same type of work to its employees working in the enterprise zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department corporation.

AB40,1235,7 2. b. The business enters into an agreement with the department corporation to claim tax benefits only for years during which the business maintains the capital investment.

AB40,1235,11 c. The business offers compensation and benefits for the same type of work to its employees working in the zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the department corporation.

AB40,1235,13 (d) 1. The business is an original equipment manufacturer with a significant supply chain in the state, as determined by the department corporation by rule.

AB40,1235,16 (e) A business located in an enterprise zone if the business purchases tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined by the department corporation.

AB40,1235,25 (5m) Additional tax benefits for significant capital expenditures. If the department corporation determines that a business certified under sub. (5) makes a significant capital expenditure in the enterprise zone, the department corporation may certify the business to receive additional tax benefits in an amount to be determined by the department corporation, but not exceeding 10 percent of the business' capital expenditures. The department corporation shall, in a manner determined by the department corporation, allocate the tax benefits a business is certified to receive under this subsection over the remainder of the time limit of the enterprise zone under sub. (4).

AB40,1236,3 (6) (a) The department of commerce corporation shall notify the department of revenue when the department of commerce corporation certifies a business to receive tax benefits.

AB40,1236,5 (b) (intro.) The department corporation shall revoke a certification under sub. (5) if the business does any of the following:

AB40,1236,7 (c) The department of commerce corporation shall notify the department of revenue within 30 days of a revocation under par. (b).

AB40,1236,10 (d) The department corporation may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment or capital investment levels required by an agreement under sub. (5) (c).

AB40,1236,13 (e) The department corporation shall determine the maximum amount of the tax credits under ss. 71.07 (3w), 71.28 (3w), and 71.47 (3w) that a certified business may claim and shall notify the department of revenue of this amount.

AB40,1236,16 (f) The department corporation shall annually verify the information submitted to the department corporation under ss. 71.07 (3w), 71.28 (3w), or 71.47 (3w).

AB40,1236,18 (g) (intro.) The department corporation shall promulgate adopt rules specifying all of the following by rule: