AB617: Bill Text

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.

AB617,142,19 (3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to s. 238.335 555.335 (2), if each local governing body complies with subs. (1) and (2).

AB617,142,22 (5) The corporation department may permit a local governing body to revise an application that the corporation department determines is inadequate or incomplete.

AB617,395 Section 395. 238.325 of the statutes is renumbered 555.325 and amended to read:

AB617,143,3 555.325 (title) Evaluation by corporation department. (1) The corporation department shall evaluate applications received under s. 238.32 555.32 (2) and (3).

AB617,143,9 (2) Subject to s. 238.335 555.335 (5), the corporation department may reduce the size of an area nominated as a development zone, if the corporation department determines the boundaries as proposed by the local governing body in an application under s. 238.32 555.32 (2) or (3) are inconsistent with the purpose of the development zone program. Any nominated area which is reduced under this subsection need not comply with s. 238.335 555.335 (1) and (4).

AB617,143,14 (3) After evaluating an application submitted under s. 238.32 555.32 (2) or (3), the corporation department may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the corporation department approves the application, the corporation department shall designate the area as a development zone, subject to s. 238.31 555.31, and notify the local governing body.

AB617,396 Section 396. 238.335 of the statutes is renumbered 555.335, and 555.335 (6) (a) 2. and (c) and (7), as renumbered, are amended to read:

AB617,143,18 555.335 (6) (a) 2. Each area meets at least 3 of the criteria listed in s. 238.31 555.31 (1) (e) 4.

AB617,143,21 (c) If an application is submitted by the governing body of a county under s. 238.32 555.32 (2) or (3), up to 4 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

AB617,143,24 (7) The corporation department may waive the requirements of this section in a particular case, if the corporation department determines that application of the requirement is impractical with respect to a particular development zone.

AB617,397 Section 397. 238.34 of the statutes is renumbered 555.34, and 555.34 (1), (2), (3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:

AB617,144,8 555.34 (1) Except as provided under sub. (6), at any time after a development zone is designated by the corporation department, a local governing body may submit an application to change the boundaries of the development zone. If the boundary change reduces the size of a development zone, the local governing body shall explain why the area excluded should no longer be in a development zone. The corporation department may require the local governing body to submit additional information.

AB617,144,12 (2) The corporation department may approve an application for a boundary change if the development zone, as affected by the boundary changes, meets the applicable requirements of s. 238.335 555.335 and 3 of the criteria under s. 238.31 555.31 (1) (e) 4.

AB617,144,14 (3) (intro.) If the corporation department approves an application for a boundary change under sub. (2), it shall do all of the following:

AB617,144,16 (a) Redetermine the limit on the tax benefits for the development zone established under s. 238.345 555.345 (2) (a).

AB617,144,19 (4) The change in the boundaries or tax benefits limit of a development zone shall be effective on the day the corporation department notifies the local governing body under sub. (3) (b).

AB617,144,24 (5) No change in the boundaries of a development zone may affect the duration of an area as a development zone under s. 238.345 555.345 (1) (a). The corporation department may consider a change in the boundary of a development zone when evaluating an application for an extension of the designation of an area as a development zone under s. 238.345 555.345 (1) (b).

AB617,145,3 (6) The corporation department may not accept any applications under sub. (1) to change the boundaries of a development zone designated under s. 238.31 555.31 on or after March 6, 2009.

AB617,398 Section 398. 238.345 of the statutes is renumbered 555.345, and 555.345 (1) (a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3) (intro.), (a) and (b), as renumbered, are amended to read:

AB617,145,9 555.345 (1) (a) The designation of an area as a development zone shall be effective for 240 months, beginning on the day the corporation department notifies the local governing body under s. 238.325 555.325 (3) of the designation.

AB617,145,14 (b) The local governing body may apply to the corporation department for one 60-month extension of the designation. The corporation department shall adopt rules establishing criteria for approving an extension of a designation of an area as a development zone under this subsection. No applications may be accepted by the corporation department under this paragraph on or after March 6, 2009.

AB617,145,17 (2) (a) When the corporation department designates a development zone under s. 238.31 555.31, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone a portion of $38,155,000.

AB617,145,21 (am) Notwithstanding par. (a), the corporation department may increase the established limit for tax benefits for a development zone. The corporation department may not increase the limit for tax benefits established for any development zone designated under s. 238.31 555.31 on or after March 6, 2009.

AB617,145,23 (b) Annually the corporation department shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development zone.

AB617,146,3 (c) 1. Ninety days after the day on which the corporation department determines that the forgone tax revenues under par. (b) will equal or exceed the limit for the development zone established under par. (a) or (am).

AB617,146,5 2. The day that the corporation department withdraws its designation of an area as a development zone under sub. (3).

AB617,146,7 (d) The corporation department shall immediately notify the local governing body of a change in the expiration date of the development zone under par. (c).

AB617,146,9 (3) (intro.) The corporation department may withdraw the designation of an area as a development zone if any of the following applies:

AB617,146,13 (a) No person is certified as eligible to receive tax benefits under s. 238.365 555.365 (3) during the 12-month period beginning on the day the area is designated as a development zone and the corporation department determines that the local governing body that nominated the zone is not in compliance with s. 238.363 555.363.

AB617,146,16 (b) No person is certified as eligible to receive tax benefits under s. 238.365 555.365 (3) during the 24-month period beginning on the day the area is designated a development zone.

AB617,399 Section 399. 238.35 of the statutes is renumbered 555.35, and 555.35 (intro.), (6), (7), (8) and (10), as renumbered, are amended to read:

AB617,146,20 555.35 Additional duties of the corporation department. (intro.) The corporation department shall do all of the following:

AB617,147,2 (6) Notify University of Wisconsin small business development centers, the Wisconsin housing and development centers, the central administration of all University of Wisconsin campuses and regional planning commissions about the development zone program and encourage those entities to provide advice to the corporation department or local governing bodies on ways to improve the development zone program.

AB617,147,3 (7) Prepare forms for the certification described under s. 238.365 555.365 (5).

AB617,147,5 (8) Annually verify information submitted to the corporation department under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

AB617,147,9 (10) Enter into an agreement with the local governing body of a 1st class city where a development zone is designated under s. 238.31 555.31 (3) (c) 1. to provide efficient administration of the development zone program within the development zone.

AB617,400 Section 400. 238.363 of the statutes is renumbered 555.363, and 555.363 (1) (intro.) and (c) and (4), as renumbered, are amended to read:

AB617,147,14 555.363 (1) (intro.) If an area nominated by a local governing body is designated as a development zone under s. 238.31 555.31, the local governing body shall do all of the following:

AB617,147,16 (c) Assist the corporation department in the administration of the development zone program.

AB617,147,20 (4) The local governing body of a 1st class city where a development zone is designated under s. 238.31 555.31 (3) (c) 1. shall enter into an agreement with the corporation department to provide efficient administration of the development zone program within the development zone.

AB617,401 Section 401. 238.365 of the statutes is renumbered 555.365, and 555.365 (intro.), (2), (3) (intro.), (b) and (j) and (5) (g) and (h), as renumbered, are amended to read:

AB617,147,25 555.365 Certification for tax benefits. (intro.) The corporation department shall do all of the following:

AB617,148,2 (2) Determine whether a person applying for tax benefits engages or will engage in economic activity that violates s. 238.38 555.38 (1).

AB617,148,5 (3) (intro.) Subject to s. 238.38 555.38, certify persons who are eligible to claim tax benefits while an area is designated as a development zone, according to the following criteria:

AB617,148,7 (b) The person's commitment not to engage in economic activity that violates s. 238.38 555.38 (1).

AB617,148,9 (j) Any other criteria established under rules adopted by the corporation department.

AB617,148,11 (5) (g) The limit under s. 238.368 555.368 on tax benefits the person may claim while an area is designated as a development zone.

AB617,148,13 (h) Other information required by the corporation department or the department of revenue.

AB617,402 Section 402. 238.368 of the statutes is renumbered 555.368, and 555.368 (1) (a) and (b) (intro.), 1. and 2., (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are amended to read:

AB617,148,19 555.368 (1) (a) The corporation department shall establish a limit on the maximum amount of tax benefits a person certified under s. 238.365 555.365 (3) may claim while an area is designated as a development zone.

AB617,148,21 (b) (intro.) When establishing a limit on tax benefits under par. (a), the corporation department shall do all of the following:

AB617,148,22 1. Consider all of the criteria described in s. 238.365 555.365 (3) (a) to (e).

AB617,149,2 2. Establish a limit which does not greatly exceed a recommended limit, established under rules adopted by the corporation department based on the cost, number and types of full-time jobs that will be created, retained, or upgraded, including full-time jobs available to members of the targeted population, as a result of the economic activity of the person certified under s. 238.365 555.365 (3).

AB617,149,5 (2) (intro.) The corporation department may, upon request, increase a limit on tax benefits established under sub. (1) if the corporation department does all of the following:

AB617,149,8 (b) Revises the certification required under s. 238.365 555.365 (5) and provides a copy of the revised form to the department of revenue and the person whose limit is increased under this subsection.

AB617,149,11 (3) (a) (intro.) The corporation department may reduce a limit established under sub. (1) or (2) if the corporation department determines that any of the following applies:

AB617,149,13 1. The limit is not consistent with the criteria listed under s. 238.365 555.365 (3) (a) to (e).