AB617: Bill Text

AB617,130,3 (c) In s. 238.398 555.398, "tax benefits" means the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm) and the development zones credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.

AB617,130,6 (d) In ss. 238.301 555.301 to 238.306 555.306, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

AB617,130,8 (e) In s. 238.308 555.308, "tax benefits" means the business development tax credit under ss. 71.07 (3y), 71.28 (3y), and 71.47 (3y).

AB617,384 Section 384. 238.301 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.301, and 555.301 (1) (intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are amended to read:

AB617,130,14 555.301 (1) Application. (intro.) Any person may apply to the corporation department on a form prepared by the corporation department for certification under this section. The application shall include all of the following:

AB617,130,16 (e) Other information required by the corporation department or the department of revenue.

AB617,130,20 (2) (a) The corporation department may certify a person who submits an application under sub. (1) if, after conducting an investigation, the corporation department determines that the person is conducting or intends to conduct at least one eligible activity.

AB617,130,22 (b) The corporation department shall provide a person certified under this section with a copy of the certification.

AB617,130,25 (3) Contract. (intro.) A person certified under this section shall enter into a written contract with the corporation department. The contract shall include provisions that detail all of the following:

AB617,131,3 (b) Whether any of the eligible activities will occur in an economically distressed area, as designated by the corporation department under s. 238.304 555.304 (1).

AB617,131,5 (c) Whether any of the eligible activities will benefit members of a targeted group, as determined by the corporation department under s. 238.304 555.304 (2).

AB617,131,8 (d) A compliance schedule that includes a sequence of anticipated actions to be taken or goals to be achieved by the person before the person may receive tax benefits under s. 238.303 555.303.

AB617,131,10 (f) If feasible, a determination of the tax benefits the person will be authorized to claim under s. 238.303 555.303 (2) if the person fulfills the terms of the contract.

AB617,385 Section 385. 238.302 of the statutes is renumbered 555.302, and 555.302 (intro.), (1), (2) and (3), as renumbered, are amended to read:

AB617,131,14 555.302 Eligible activities. (intro.) A person who conducts or proposes to conduct any of the following may be certified under s. 238.301 555.301 (2):

AB617,131,17 (1) Job creation project. A project that creates and maintains for a period of time established by the corporation department by rule full-time jobs in addition to any existing full-time jobs provided by the person.

AB617,131,21 (2) Capital investment project. A project that involves a significant investment of capital, as defined by the corporation department by rule under s. 238.306 555.306 (2) (b), by the person in new equipment, machinery, real property, or depreciable personal property.

AB617,131,25 (3) Employee training project. A project that involves significant investments in the training or reeducation of employees, as defined by the corporation department by rule under s. 238.306 555.306 (2) (c), by the person for the purpose of improving the productivity or competitiveness of the business of the person.

AB617,386 Section 386. 238.303 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.303, and 555.303 (1) (a), (am) and (b), (2), (3) and (4), as renumbered, are amended to read:

AB617,132,9 555.303 (1) (a) Except as provided in pars. (am) and (b), the total tax benefits available to be allocated by the corporation department under ss. 238.301 555.301 to 238.306 555.306 may not exceed the sum of the tax benefits remaining to be allocated under s. 560.71 to 560.785, 2009 stats., s. 560.797, 2009 stats., s. 560.798, 2009 stats., s. 560.7995, 2009 stats., and s. 560.96, 2009 stats., on March 6, 2009, plus $100,000,000.

AB617,132,23 (am) The corporation department may initially allocate only $61,000,000 of the additional $100,000,000 in tax benefits specified in par. (a). Before the corporation department allocates the remaining $39,000,000 in tax benefits specified in par. (a), the corporation department shall submit its plan for such allocation, including a report that describes the intended use of the tax benefits, to the joint committee on finance. If the cochairpersons of the committee do not notify the corporation department within 14 working days after the date of the corporation's department's submittal that the committee has scheduled a meeting for the purpose of reviewing the plan, the plan may be implemented and the remaining amount may be allocated as proposed by the corporation department. If, within 14 working days after the date of the corporation's department's submittal, the cochairpersons of the committee notify the corporation department that the committee has scheduled a meeting for the purpose of reviewing the proposed plan, the plan may be implemented and the remaining amount allocated only upon approval of the committee.

AB617,133,4 (b) The corporation department may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a). The corporation department shall submit with its request a justification for seeking an increase under this paragraph. The joint committee on finance, following its review, may approve or disapprove an increase in the total tax benefits available to be allocated under ss. 238.301 555.301 to 238.306 555.306.

AB617,133,10 (2) Authority to claim tax benefits. The corporation department may authorize a person certified under s. 238.301 555.301 (2) to claim tax benefits only after the person has submitted a report to the corporation department that documents to the satisfaction of the corporation department that the person has complied with the terms of the contract under s. 238.301 555.301 (3) and the requirements of any applicable rules adopted under s. 238.306 555.306 (2).

AB617,133,13 (3) Notice of eligibility. The corporation department shall provide to the person a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.

AB617,133,20 (4) Sunset. No tax benefits may be awarded under ss. 238.301 555.301 to 238.306 555.306 after December 31, 2015, unless the tax benefits were allocated to a taxpayer by the corporation Wisconsin Economic Development Corporation under ss. 238.301 to 238.306, 2013 stats., in a contract that the corporation Wisconsin Economic Development Corporation executed before that date or in a letter of intent to enter into such a contract that the corporation Wisconsin Economic Development Corporation issued before that date.

AB617,387 Section 387. 238.304 of the statutes is renumbered 555.304, and 555.304 (intro.) and (1), as renumbered, are amended to read:

AB617,134,2 555.304 Eligible activities in economically distressed areas and benefiting members of targeted groups. (intro.) The corporation department may authorize a person certified under s. 238.301 555.301 (2) to claim additional tax benefits under s. 238.303 555.303 if, after conducting an investigation, the corporation department determines any of the following:

AB617,134,6 (1) The person conducts at least one eligible activity in an area designated by the corporation department as economically distressed. In designating an area as economically distressed under this subsection, the corporation department shall follow the methodology established by rule under s. 238.306 555.306 (2) (e).

AB617,388 Section 388. 238.3045 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.3045, and 555.3045 (1) (title), (a), (b) (intro.) and 4. and (c) 1., (2) (a), (3) and (4) (a) and (b), as renumbered, are amended to read:

AB617,134,20 555.3045 (1) (title) Application and corporation department approval. (a) An applicant for certification for tax benefits under s. 238.301 555.301 may submit with its application under s. 238.301 555.301 (1) an application to the corporation department on a form prescribed by the corporation department to transfer those tax benefits to another person under this section. The application shall include the name, address, and tax identification number of the person to whom the applicant intends to transfer the tax benefits and any other information the corporation department requires. The corporation department shall notify the applicant of the corporation's department's determination concerning the transfer of tax benefits when the corporation department notifies the applicant of the corporation's department's certification determination under s. 238.301 555.301.

AB617,134,24 (b) (intro.) The corporation department may approve the transfer of tax benefits under this section if the corporation department certifies the applicant under par. (a) for tax benefits under s. 238.301 555.301 and finds that the applicant meets at least one of the following conditions:

AB617,135,3 4. Intends to expand its operations in this state, and that expansion will result in the applicant making a significant capital investment in property located in this state, as determined by the corporation department.

AB617,135,12 (c) 1. Subject to subd. 2., a person that receives an approval under par. (b) shall transfer tax benefits in accordance with the terms of the application under par. (a) after the corporation department authorizes the person to claim tax benefits under s. 238.303 555.303 (2) and provides the notice of eligibility under s. 238.303 555.303 (3). The notice of eligibility shall contain all relevant information concerning a transfer of tax benefits under this section. The person to whom tax benefits are transferred may carry forward, beginning on the date of the notice of eligibility, any unused amount of the value of those tax benefits as provided under the appropriate provision in ch. 71 or in s. 76.636.

AB617,135,17 (2) (a) If the corporation department revokes a person's certification for tax benefits under s. 238.305 555.305, and, at the time of revocation, that person has transferred those tax benefits under this section, that person shall be liable for the full value of the tax benefits, and the person to whom the tax benefits were transferred may not claim any tax benefits that were not claimed prior to revocation.

AB617,135,20 (3) Annual report. Annually, the corporation department shall submit a report to the joint committee on finance that provides a detailed assessment of the progress to date of the program under this section.

AB617,135,24 (4) (a) Except as provided in par. (b), the corporation department may not authorize the transfer of tax benefits under this section that total more than $15,000,000, and the corporation department may not authorize the transfer of tax benefits after 36 months after April 4, 2014.

AB617,136,21 (b) Upon expiration of the 36-month period under par. (a), the corporation department may continue to authorize the transfer of tax benefits under this section for up to an additional 36 months, and the corporation department may authorize the transfer of up to an additional $15,000,000 in tax benefits, if the corporation department determines that a continuation of the program under this section will promote significant economic development in this state. Before the corporation department authorizes the transfer of tax benefits under this paragraph, the chief executive officer of the corporation secretary shall notify the joint committee on finance in writing that the corporation department intends to continue authorizing the transfer of tax benefits under this section. That notice shall state the reasons supporting the corporation's department's determination that the transfer of additional tax benefits will promote significant economic development in this state. If, within 14 working days after the date of that notice, the cochairpersons of the committee do not notify the corporation department that the committee has scheduled a meeting to review the corporation's department's proposed continuation of the program, the corporation department may proceed to authorize the transfer of additional tax benefits under this section. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the corporation department that the committee has scheduled a meeting to review the proposed continuation of the program, the corporation department may proceed to authorize the transfer of additional tax benefits only upon approval of the committee.

AB617,389 Section 389. 238.305 of the statutes is renumbered 555.305, and 555.305 (intro.), (1) and (2), as renumbered, are amended to read:

AB617,136,25 555.305 Revocation of certification. (intro.) The corporation department shall revoke the certification of a person who does any of the following:

AB617,137,2 (1) Supplies false or misleading information to obtain certification under s. 238.301 555.301 (2).

AB617,137,4 (2) Supplies false or misleading information to obtain tax benefits under s. 238.303 555.303.

AB617,390 Section 390. 238.306 of the statutes is renumbered 555.306, and 555.306 (intro.), (1) (a) and (b), (2) (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3), as renumbered, are amended to read:

AB617,137,9 555.306 Responsibilities of the corporation department. (intro.) The corporation department shall do all of the following:

AB617,137,12 (1) (a) Annually verify information submitted to the department of revenue under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under s. 238.301 555.301 (2) and eligible to receive tax benefits under s. 238.303 555.303.

AB617,137,14 (b) Notify and obtain written approval from the chief executive officer of the corporation secretary for any certification under sub. (2) (j).

AB617,137,18 (2) (a) A schedule of hourly wage ranges to be paid, and health insurance benefits to be provided, to an employee by a person certified under s. 238.301 555.301 (2) and the corresponding per employee tax benefit for which a person certified under s. 238.301 555.301 (2) may be eligible.

AB617,137,24 (b) A definition of "significant investment of capital" for purposes of s. 238.302 555.302 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 555.301 (2) and who conducts a project described in s. 238.302 555.302 (2) may be eligible. The corporation department shall include in the definition required under this paragraph a schedule of investments that takes into consideration the size or nature of the business.

AB617,138,4 (c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 238.302 555.302 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 555.301 (2) and who conducts a project under s. 238.302 555.302 (3) may be eligible.

AB617,138,7 (d) A schedule of tax benefits for which a person who is certified under s. 238.301 555.301 (2) and who conducts a project that will result in the location or retention of a person's corporate headquarters in Wisconsin may be eligible.

AB617,138,11 (e) (intro.) The methodology for designating an area as economically distressed under s. 238.304 555.304 (1). The methodology under this paragraph shall require the corporation department to consider the most current data available for the area and for the state on the following indicators:

AB617,138,14 (f) A schedule of additional tax benefits for which a person who is certified under s. 238.301 555.301 (2) and who conducts an eligible activity described under s. 238.304 555.304 may be eligible.

AB617,138,17 (g) Reporting requirements, minimum benchmarks, and outcomes expected of a person certified under s. 238.301 555.301 (2) before that person may receive tax benefits under s. 238.303 555.303.

AB617,138,19 (h) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 238.303 555.303 to rural areas.

AB617,138,21 (i) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 238.303 555.303 to small businesses.

AB617,138,22 (k) Procedures for implementing ss. 238.301 555.301 to 238.306 555.306.

AB617,139,3 (3) Reporting. Annually, 6 months after the report has been submitted under s. 238.07 555.07 (2), submit to the joint legislative audit committee and to the appropriate standing committees of the legislature under s. 13.172 (3) a comprehensive report assessing the program under ss. 238.301 555.301 to 238.306 555.306. The report under this subsection shall update the applicable information provided in the report under s. 238.07 555.07 (2).

AB617,391 Section 391. 238.308 of the statutes, as created by 2015 Wisconsin Act 55, is renumbered 555.308, and 555.308 (2) (a) (intro.) and 2., (3), (4) (a) (intro.), 2. and 5. and (b) and (5) (a), (b) and (c), as renumbered, are amended to read:

AB617,139,8 555.308 (2) (a) (intro.) The corporation department may certify a person to receive tax benefits under this section if all of the following apply:

AB617,139,10 2. The person applies under this section and enters into a contract with the corporation department.

AB617,139,16 (3) Eligibility for tax benefits. A person is eligible to receive tax benefits if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under sub. (2), as determined by the corporation department under its policies and procedures rules.

AB617,139,18 (4) (a) (intro.) The corporation department may award all of the following tax benefits to a person certified under sub. (2):

AB617,139,22 2. In addition to any tax benefits awarded for an eligible employee under subd. 1., an amount equal to up to 5 percent of the amount of wages that the person paid to the eligible employee in the taxable year, if the eligible employee is employed in an economically distressed area, as determined by the corporation department.

AB617,140,3 5. An amount, as determined by the corporation department, equal to a percentage of the amount of wages that the person paid to an eligible employee in the taxable year, if the position in which the eligible employee was employed was created or retained in connection with the person's location or retention of the person's corporate headquarters in Wisconsin and the job duties associated with the eligible employee's position involve the performance of corporate headquarters functions.

AB617,140,7 (b) Subject to a reallocation by the corporation department under s. 238.15 555.15 (3) (d), the corporation department may allocate up to $17,000,000 in tax benefits under this section in 2016 and up to $22,000,000 per year thereafter. Any unused allocation may be carried forward.

AB617,140,10 (5) (a) The corporation department may require a person to repay any tax benefits the person claims for a year in which the person failed to employ an eligible employee required by an agreement under sub. (2) (b).

AB617,140,13 (b) The corporation department shall annually verify the information submitted to it by the person claiming tax benefits under ss. 71.07 (3y), 71.28 (3y), and 71.47 (3y).

AB617,140,15 (c) The corporation department shall adopt policies and procedures promulgate rules for the implementation and operation of this section.

AB617,392 Section 392. 238.31 of the statutes is renumbered 555.31, and 555.31 (1) (intro.), (ac), (am), (b), (d) and (e) (intro.), 3. and 4. a. and d., (1m) (intro.) and (h), (2) and (3) (intro.), as renumbered, are amended to read:

AB617,140,20 555.31 (1) (intro.) The corporation department may designate an area as a development zone if all of the following apply:

AB617,140,22 (ac) The corporation department has invited a local governing body to nominate the area under s. 238.315 555.315.

AB617,140,24 (am) A local governing body nominates the area as described in s. 238.32 555.32.

AB617,141,2 (b) The corporation department has evaluated the local governing body's application as described in s. 238.325 555.325.

AB617,141,3 (d) The area meets the applicable requirements under s. 238.335 555.335.

AB617,141,4 (e) (intro.) The corporation department determines all of the following:

AB617,141,7 3. That economic development in the area is not likely to occur or continue without the corporation's department's designation of the area as a development zone.

AB617,141,10 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 s. 238.32 555.32 (2) or (3) was submitted to the corporation department.

AB617,141,14 d. In the 36 months immediately preceding the date on which the application under s. 238.32 555.32 (2) or (3) was submitted to the corporation department, 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).

AB617,141,16 (1m) (intro.) In making a determination under sub. (1) (e), the corporation department shall consider all of the following:

AB617,141,17 (h) Any other factors that the corporation department considers relevant.

AB617,141,20 (2) In determining whether an area meets the requirements under sub. (1) (e) or s. 238.335 555.335, the corporation department may rely on any data provided by the local governing body that the corporation department determines is relevant.

AB617,141,21 (3) (intro.) The corporation department shall do all of the following:

AB617,393 Section 393. 238.315 of the statutes is renumbered 555.315 and amended to read:

AB617,142,2 555.315 Invitation to nominate area. If the corporation department determines that an area has experienced or is about to experience economic distress, the corporation department may invite local governing bodies in the area to nominate the area as a development zone.

AB617,394 Section 394. 238.32 of the statutes is renumbered 555.32, and 555.32 (1) (intro.), (2) (intro.), (c), (d) and (i), (3) and (5), as renumbered, are amended to read:

AB617,142,8 555.32 (1) (intro.) A local governing body may nominate an area as a development zone, if the corporation department has invited the governing body to nominate the area under s. 238.315 555.315 and if the governing body does all of the following:

AB617,142,11 (2) (intro.) A local governing body may nominate the area as a development zone by submitting an application to the corporation department in a form prescribed by the corporation department. The application shall include all of the following:

AB617,142,13 (c) Evidence that the area meets at least 3 of the criteria under s. 238.31 555.31 (1) (e) 4.

AB617,142,15 (d) Evidence that the area meets the applicable requirements of s. 238.335 555.335.

AB617,142,16 (i) Any other information required by the corporation department.