SB21: Bill Text

SB21,1480,3 (b) Notification of department of revenue. The corporation authority shall notify the department of revenue of every certification issued under subs. (1) and (2) and the date on which any such certification is revoked or expires.

SB21,1481,10 (d) Rules Administration. (intro.) The corporation authority, in consultation with the department of revenue, shall adopt rules establish policies and procedures to administer this section. The rules and shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $6,500,000 for calendar year 2010, and $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount and of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $8,000,000 for calendar year 2010, and $20,500,000 is $30,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules policies and procedures shall also provide that, for calendar years beginning after December 31, 2007, a person who receives a credit under ss. s. 71.07 (5b) and or (5d), 71.28 (5b), 71.47 (5b), or 76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation authority, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation authority, occurs during the 3-year period. The rules policies and procedures shall permit the corporation authority to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under s. 238.16 235.16 (1) (d), if all of the following apply:

SB21,1481,12 1. The corporation authority notifies the joint committee on finance in writing of its proposed reallocation.

SB21,1481,16 2. a. The cochairpersons of the joint committee on finance fail to notify the corporation authority, within 14 working days after the date of the corporation's authority's notification under subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.

SB21,1481,18 b. The cochairpersons of the joint committee on finance notify the corporation authority that the committee has approved the proposed reallocation.

SB21,1481,25 (dm) The corporation's authority's policies and procedures under this subsection shall permit the corporation authority to waive one or more of the requirements under sub. (1) (a), (b), (h), and (m) 1. based on standards the corporation authority establishes in the policies and procedures. The corporation authority may not waive a requirement under sub. (1) (a), (b), (h), or (m) 1. unless the board approves the standards in the policies and procedures and the waiver complies with those standards.

SB21,1482,13 (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b) or (5d), or 76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under s. 71.02, 71.23, 71.47, or subch. III of ch. 76, if the person was certified to claim the credit after December 31, 2014 and if the person receives prior authorization from the investment fund manager, for a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638, and the investment fund manager, or the claimant under s. 71.07 (5d) for the sale or other transfer of a credit under s. 71.07 (5d), notifies the corporation authority and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The corporation authority may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 5 percent of the credit amount sold or transferred.

SB21,3981 Section 3981. 238.15 (1) (intro.) of the statutes is amended to read:

SB21,1482,23 238.15 (1) Angel investment tax credits. (intro.) The corporation shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the corporation in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). The Except as provided in policies and procedures under sub. (3) (dm), the corporation may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB21,3982 Section 3982. 238.15 (1) (f) 1. b. of the statutes is amended to read:

SB21,1483,5 238.15 (1) (f) 1. b. Processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, any other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary differentiating technology.

SB21,3983 Section 3983. 238.15 (1) (f) 1. c. of the statutes is amended to read:

SB21,1483,8 238.15 (1) (f) 1. c. Services that are enabled by applying proprietary differentiating technology.

SB21,3984 Section 3984. 238.15 (1) (f) 2. of the statutes is amended to read:

SB21,1483,13 238.15 (1) (f) 2. It is undertaking pre-commercialization activity related to proprietary differentiating technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary differentiating technology.

SB21,3985 Section 3985. 238.15 (1) (f) 3. of the statutes is created to read:

SB21,1483,16 238.15 (1) (f) 3. It is a technology-based physician and health care consulting business.

SB21,3986 Section 3986. 238.15 (1) (f) 4. of the statutes is created to read:

SB21,1483,19 238.15 (1) (f) 4. It is a retailer for whom at least 51 percent of its annual sales originate on the Internet.

SB21,3987 Section 3987. 238.15 (1) (g) of the statutes is amended to read:

SB21,1484,3 238.15 (1) (g) It is not primarily engaged in real estate development,; insurance,; banking,; lending,; lobbying, ; political consulting,; professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, except technology-based physician or health care consultants; wholesale or retail trade, except retailers for whom at least 51 percent of annual income originates on the Internet; leisure, ; hospitality,; transportation,; or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).

SB21,3988 Section 3988. 238.15 (1) (L) of the statutes is amended to read:

SB21,1484,8 238.15 (1) (L) For taxable years beginning after December 31, 2010 and before January 1, 2015, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB21,3989 Section 3989. 238.15 (1) (Lg) of the statutes is created to read:

SB21,1484,12 238.15 (1) (Lg) For taxable years beginning after December 31, 2014, it has not received more than $12,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB21,3990 Section 3990. 238.15 (1) (m) 1. (intro.) of the statutes is amended to read:

SB21,1484,20 238.15 (1) (m) 1. (intro.) It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount determined under subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, except as provided in policies and procedures under sub. (3) (dm), a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

SB21,3991 Section 3991. 238.15 (1) (m) 3. of the statutes is created to read:

SB21,1484,25 238.15 (1) (m) 3. Subdivision 1. does not apply to a business that the corporation certified for purposes of s. 71.07 (5d) before April 20, 2012, and that, in reliance on that certification, executed a note or bond that is convertible to an equity interest.

SB21,3992 Section 3992. 238.15 (3) (dm) of the statutes is created to read:

SB21,1485,7 238.15 (3) (dm) The corporation's policies and procedures under this subsection shall permit the corporation to waive one or more of the requirements under sub. (1) (a), (b), (h), and (m) 1. based on standards the corporation establishes in the policies and procedures. The corporation may not waive a requirement under sub. (1) (a), (b), (h), or (m) 1. unless the board approves the standards in the policies and procedures and the waiver complies with those standards.

SB21,3993 Section 3993. 238.15 (3) (e) of the statutes is amended to read:

SB21,1485,21 238.15 (3) (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b) or (5d), 71.28 (5b), 71.47 (5b), or 76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under s. 71.02, 71.23, 71.47, or subch. III of ch. 76, if the person was certified to claim the credit after December 31, 2014 and if the person receives prior authorization from the investment fund manager, for a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638, and the investment fund manager then, or the claimant under s. 71.07 (5d) for the sale or other transfer of a credit under s. 71.07 (5d), notifies the corporation and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The corporation may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 5 percent of the credit amount sold or transferred.

SB21,3994 Section 3994. 238.16 of the statutes, as affected by 2015 Wisconsin Act .... (this act), is renumbered 235.16, and 235.16 (1) (c) 2. (intro.), (2) (intro.) and (b), (3) (intro.), (4) (b) 1. (intro.) and 2. and (c) and (5) (title), (a), (b), (c), (d), (e) and (f) (intro.) and 1. (intro.), as renumbered, are amended to read:

SB21,1486,4 235.16 (1) (c) 2. (intro.) The corporation authority may grant exceptions to the requirement under subd. 1. that a full-time job means a position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year if all of the following apply:

SB21,1486,6 (2) (intro.) The corporation authority may certify a person to receive tax benefits under this section if all of the following apply:

SB21,1486,8 (b) The person applies under this section and enters into a contract with the corporation authority.

SB21,1486,15 (3) Eligibility for tax benefits. (intro.) A person certified under sub. (2) may receive tax benefits under this section 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 authority under its policies and procedures, and one of the following applies:

SB21,1486,20 (4) (b) 1. (intro.) The corporation authority may award to a person certified under sub. (2) tax benefits for each eligible employee in an amount equal to up to 10 percent of the wages paid by the person to that employee or $10,000, whichever is less, if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:

SB21,1486,23 2. The corporation authority may award to a person certified under sub. (2) tax benefits in an amount to be determined by the corporation authority for costs incurred by the person to undertake the training activities described in sub. (3) (c).

SB21,1487,3 (c) Subject to a reallocation by the corporation authority pursuant to policies and procedures adopted under s. 238.15 235.15 (3) (d), the corporation authority may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

SB21,1487,4 (5) (title) Duties of the corporation authority.

SB21,1487,6 (a) The corporation authority shall notify the department of revenue when the corporation authority certifies a person to receive tax benefits.

SB21,1487,8 (b) The corporation authority shall notify the department of revenue within 30 days of revoking a certification made under sub. (2).

SB21,1487,11 (c) The corporation authority may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under sub. (2) (b).

SB21,1487,14 (d) The corporation authority shall determine the maximum amount of the tax credits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q) that a certified business may claim and shall notify the department of revenue of this amount.

SB21,1487,17 (e) The corporation authority shall annually verify the information submitted to the corporation authority by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

SB21,1487,20 (f) (intro.) The corporation authority shall adopt policies and procedures for the implementation and operation of this section, including policies and procedures relating to the following:

SB21,1487,23 1. (intro.) The definitions of a tier I county or municipality and a tier II county or municipality. The corporation authority may consider all of the following information when establishing the definitions required under this subdivision:

SB21,3995 Section 3995. 238.16 (4) (c) of the statutes is amended to read:

SB21,1488,5 238.16 (4) (c) Subject to a reallocation by the corporation pursuant to rules policies and procedures adopted under s. 238.15 (3) (d), the corporation may allocate up to $5,000,000 in tax benefits under this section in any calendar year, except that beginning on July 1, 2011, the corporation may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

SB21,3996 Section 3996. 238.16 (6) of the statutes is created to read:

SB21,1488,8 238.16 (6) Sunset. No tax benefits may be awarded under this section after December 31, 2015.

SB21,3997 Section 3997. 238.17 of the statutes is renumbered 235.17 (1) (a) and amended to read:

SB21,1488,21 235.17 (1) (a) For taxable years beginning after December 31, 2013, the corporation authority may certify a person to claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6), if the corporation authority determines that the person is conducting an eligible activity under s. 71.07 (9m), 71.28 (6), or 71.47 (6) preservation or rehabilitation project. No person may claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6) without first being certified under this section subsection. The corporation authority shall notify the department of revenue no later than January 15 of each year of the amount of the credits certified under this section subsection and the name, address, and tax identification number of each person certified to claim the credit. The corporation authority shall notify the department of revenue of any revoked certification no later than 2 months after the revocation date.

SB21,3998 Section 3998. 238.23 of the statutes is renumbered 235.23, and 235.23 (1), (2) (a) and (b), (3) (a) (intro.), (b) (intro.), (c) and (d), (4) (a) (intro.) and (b) and (5) (intro.), (e) and (g), as renumbered, are amended to read:

SB21,1489,2 235.23 (1) In this section, "tax credit" means a credit under s. 71.07 (2di), (2dm), (2dx), or (3g), 71.28 (1di), (1dm), (1dx), or (3g), or 71.47 (1di), (1dm), (1dx), or (3g).

SB21,1489,6 (2) (a) Except as provided in par. (c), the corporation authority may designate up to 8 areas in the state as technology zones. A business that is located in a technology zone and that is certified by the corporation authority under sub. (3) is eligible for a tax credit as provided in sub. (3).

SB21,1489,16 (b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the corporation authority first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the corporation authority may allocate the amount of unallocated airport development zone tax credits, as provided under s. 238.3995 235.3995 (3) (b), to technology zones for which the $5,000,000 maximum allocation is insufficient. The corporation authority may change the boundaries of a technology zone during the time that its designation is in effect. A change in the boundaries of a technology zone does not affect the duration of the designation of the area or the maximum tax credit amount that may be claimed in the technology zone.

SB21,1489,19 (3) (a) (intro.) Except as provided in par. (e), the corporation authority may certify for tax credits in a technology zone a business that satisfies all of the following requirements:

SB21,1489,21 (b) (intro.) In determining whether to certify a business under this subsection, the corporation authority shall consider all of the following:

SB21,1490,4 (c) When the corporation authority certifies a business under this subsection, the corporation authority shall establish a limit on the amount of tax credits that the business may claim. Unless its certification is revoked, and subject to the limit on the tax credit amount established by the corporation authority under this paragraph, a business that is certified may claim a tax credit for 3 years, except that a business that experiences growth, as determined for that business by the corporation authority under par. (d) and sub. (5) (e), may claim a tax credit for up to 5 years.

SB21,1490,12 (d) The corporation authority shall enter into an agreement with a business that is certified under this subsection. The agreement shall specify the limit on the amount of tax credits that the business may claim, the extent and type of growth, which shall be specific to the business, that the business must experience to extend its eligibility for a tax credit, the business' baseline against which that growth will be measured, any other conditions that the business must satisfy to extend its eligibility for a tax credit, and reporting requirements with which the business must comply.

SB21,1490,14 (4) (a) (intro.) The corporation authority shall notify the department of revenue of all the following:

SB21,1490,17 (b) The corporation authority shall annually verify information submitted to the corporation it under ss. 71.07 (2di), (2dm), (2dx), and (3g), 71.28 (1di), (1dm), (1dx), and (3g), and 71.47 (1di), (1dm), (1dx), and (3g).

SB21,1490,20 (5) (intro.) The corporation authority shall adopt rules policies and procedures for the operation of this section, including rules policies and procedures related to all of the following:

SB21,1490,24 (e) Standards for extending a business's certification, including what measures, in addition to job creation, the corporation authority will use to determine the growth of a specific business and how the corporation authority will establish baselines against which to measure growth.

SB21,1491,2 (g) The exchange of information between the corporation authority and the department of revenue.

SB21,3999 Section 3999. 238.26 of the statutes is repealed.

SB21,4000 Section 4000. Subchapter II (title) of chapter 238 [precedes 238.30] of the statutes is renumbered subchapter III (title) of chapter 235 [precedes 235.30].

SB21,4001 Section 4001. 238.30 of the statutes is renumbered 235.30, and 235.30 (intro.), (2g), (2m) (b) (intro.) and (7) (b) 1. and 2., (c) and (d), as renumbered, are amended to read:

SB21,1491,10 235.30 Definitions. (intro.) In this section and ss. 238.301 to 238.395 235.301 to 235.395 and 238.398 235.398:

SB21,1491,11 (2g) "Eligible activity" means an activity described under s. 238.302 235.302.

SB21,1491,15 (2m) (b) (intro.) The corporation authority may grant exceptions to the requirement under par. (a) that a full-time job means a position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year if all of the following apply:

SB21,1491,21 (7) (b) 1. Except as provided in subd. 2., in s. 238.395 235.395, "tax benefits" means the development zones investment credit under ss. 71.07 (2di), 71.28 (1di), and 71.47 (1di) and the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636. With respect to the development opportunity zones under s. 238.395 235.395 (1) (e) and (f), "tax benefits" also means the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).

SB21,1491,25 2. With respect to the development opportunity zones under s. 238.395 235.395 (1) (g), (h), and (i), "tax benefits" means the development zone credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636 and the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).

SB21,1492,3 (c) In s. 238.398 235.398, "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.

SB21,1492,6 (d) In ss. 238.301 to 238.306 235.301 to 235.306, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

SB21,4002 Section 4002. 238.301 of the statutes is renumbered 235.301, and 235.301 (1) (intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are amended to read:

SB21,1492,12 235.301 (1) Application. (intro.) Any person may apply to the corporation authority on a form prepared by the corporation authority for certification under this section. The application shall include all of the following: