SB21: Bill Text

SB21,1510,3 (3) (a) (intro.) The corporation authority may reduce a limit established under sub. (1) or (2) if the corporation authority determines that any of the following applies:

SB21,1510,5 1. The limit is not consistent with the criteria listed under s. 238.365 235.365 (3) (a) to (e).

SB21,1510,8 (b) The corporation authority shall notify the department of revenue and the person whose limit on tax benefits is reduced under par. (a) and provide a written explanation to the person of the reasons for reducing the limit.

SB21,4022 Section 4022. 238.37 of the statutes is renumbered 235.37, and 235.37 (1) (intro.) and (b) and (2), as renumbered, are amended to read:

SB21,1510,12 235.37 (1) (intro.) The corporation authority shall revoke the certification of a person certified under s. 238.365 235.365 (3) if the person does any of the following:

SB21,1510,13 (b) Becomes subject to revocation under s. 238.38 235.38 (1).

SB21,1510,15 (2) The corporation authority shall notify the department of revenue within 30 days of revoking a certification under sub. (1).

SB21,4023 Section 4023. 238.38 of the statutes is renumbered 235.38, and 235.38 (1) (intro.), (1m), (2) (intro.) and (a) and (3) (a) and (b), as renumbered, are amended to read:

SB21,1510,23 235.38 (1) (intro.) Except as provided in subs. (2) and (3), no person may be certified under s. 238.365 235.365 (3), or a person's certification may be revoked under s. 238.37 235.37, if the proposed new business, expansion of an existing business, or other proposed economic activity in a development zone would do or does any of the following:

SB21,1510,25 (1m) No person may be certified under s. 238.365 235.365 (3) on or after March 6, 2009.

SB21,1511,3 (2) (intro.) Subsection (1) does not apply if, after a hearing, the corporation authority, or the local governing body under sub. (3) (a), determines that any of the following applies:

SB21,1511,6 (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. 238.365 235.365 (3) or if the person's certification were revoked.

SB21,1511,13 (3) (a) Except as provided in pars. (b) and (c), if the economic activity for which a person is seeking certification under s. 238.365 235.365 (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. 238.32 235.32 shall determine whether sub. (2) (a) or (b) applies.

SB21,1511,19 (b) Only the corporation authority 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.

SB21,4024 Section 4024. 238.385 of the statutes is renumbered 235.385, and 235.385 (1) (intro.) and (bm) and (2) (intro.), (b) and (c), as renumbered, are amended to read:

SB21,1512,2 235.385 (1) (intro.) For the development zone program under ss. 238.30 235.30 and 238.31 to 238.38 235.31 to 235.38, the development opportunity zone program under s. 238.395 235.395, and the enterprise development zone program under s. 238.397 235.397, the corporation authority shall adopt rules policies and procedures that further define a person's eligibility for tax benefits. The rules policies and procedures shall do at least all of the following:

SB21,1512,6 (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 corporation authority determines that the person made a significant capital investment to retain the full-time job.

SB21,1512,8 (2) (intro.) The corporation authority may by rule specify circumstances under which the corporation authority may grant exceptions to any of the following:

SB21,1512,10 (b) The requirement under ss. 238.30 235.30 (2m) and 238.397 235.397 (1) (am) that an individual's pay must equal at least 150% of the federal minimum wage.

SB21,1512,14 (c) The requirement under ss. 238.30 235.30 (2m) and 238.397 235.397 (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.

SB21,4025 Section 4025. 238.395 of the statutes is renumbered 235.395, and 235.395 (1) (a), (b), (c), (d), (e), (f), (g), (h) and (i), (2) (c), (d) 1. and 2. and (e) 1., 2. and 3., (3) (a) 1., 2., 3. and 4., (b) 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:

SB21,1512,20 235.395 (1) (a) An area in the city of Beloit, the legal description of which is provided to the corporation authority by the local governing body of the city of Beloit.

SB21,1512,22 (b) An area in the city of West Allis, the legal description of which is provided to the corporation authority by the local governing body of the city of West Allis.

SB21,1512,24 (c) An area in the city of Eau Claire, the legal description of which is provided to the corporation authority by the local governing body of the city of Eau Claire.

SB21,1513,2 (d) An area in the city of Kenosha, the legal description of which is provided to the corporation authority by the local governing body of the city of Kenosha.

SB21,1513,4 (e) An area in the city of Milwaukee, the legal description of which is provided to the corporation authority by the local governing body of the city of Milwaukee.

SB21,1513,7 (f) For the Gateway Project, an area in the city of Beloit, the legal description of which is provided to the corporation authority by the local governing body of the city of Beloit.

SB21,1513,9 (g) An area in the city of Janesville, the legal description of which is provided to the corporation authority by the local governing body of the city of Janesville.

SB21,1513,11 (h) An area in the city of Kenosha, the legal description of which is provided to the corporation authority by the local governing body of the city of Kenosha.

SB21,1513,13 (i) An area in the city of Beloit, the legal description of which is provided to the corporation authority by the local governing body of the city of Beloit.

SB21,1513,16 (2) (c) Annually, the corporation authority shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development opportunity zone.

SB21,1513,20 (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 corporation authority determines that the forgone tax revenues under par. (c) will equal or exceed the limit for the development opportunity zone.

SB21,1513,23 2. The corporation authority 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.

SB21,1514,5 (e) 1. The corporation authority may extend the designation of an area under sub. (1) (g) as a development opportunity zone for an additional 60 months if the corporation authority determines that an extension under this subdivision would support economic development within the city. If the corporation authority 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.

SB21,1514,12 2. The corporation authority may extend the designation of an area under sub. (1) (h) as a development opportunity zone for an additional 60 months if the corporation authority determines that an extension under this subdivision would support economic development within the city. If the corporation authority 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.

SB21,1514,18 3. The corporation authority may extend the designation of an area under sub. (1) (i) as a development opportunity zone for an additional 60 months if the corporation authority determines that an extension will support economic development within the city. If the corporation authority grants an extension under this subdivision, the limit for tax benefits for the development opportunity zone under sub. (1) (i) is increased by $5,000,000.

SB21,1514,24 (3) (a) 1. Any 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 corporation authority 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.

SB21,1515,6 2. Any 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 corporation authority 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.

SB21,1515,12 3. Any 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 corporation authority no later than July 1, 2000, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

SB21,1515,18 4. Any person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (e), (f), (g), (h), or (i) 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 corporation authority shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

SB21,1515,20 (b) 9. Other information required by the corporation authority or the department of revenue.

SB21,1515,22 (c) The corporation authority shall notify the department of revenue of all persons entitled to claim tax benefits under this subsection.

SB21,1515,25 (d) The corporation authority annually shall verify information submitted to the corporation authority under s. 71.07 (2di), (2dm), or (2dx), 71.28 (1di), (1dm), or (1dx), 71.47 (1di), (1dm), or (1dx), or 76.636.

SB21,1516,2 (4) (a) (intro.) The corporation authority shall revoke the entitlement of a person to claim tax benefits under sub. (3) if the person does any of the following:

SB21,1516,4 (b) The corporation authority shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

SB21,1516,8 (5) (a) (intro.) The corporation authority 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:

SB21,1516,11 2. The corporation authority 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.

SB21,1516,14 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 corporation authority.

SB21,1516,18 (b) A person intending to claim tax benefits under this subsection shall submit to the corporation authority an application, in the form required by the corporation authority, containing information required by the corporation authority and by the department of revenue.

SB21,1516,20 (c) The corporation authority shall notify the department of revenue of all persons certified to claim tax benefits under this subsection.

SB21,1516,23 (d) The corporation authority annually shall verify information submitted to the corporation authority under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.

SB21,1516,25 (e) (intro.) The corporation authority shall revoke the entitlement of a person to claim tax benefits under this subsection if the person does any of the following:

SB21,1517,2 3. Does not pass the benefits through to the other person conducting the economic activity under par. (a) 1., as determined by the corporation authority.

SB21,1517,4 (f) The corporation authority shall notify the department of revenue within 30 days after revoking an entitlement under par. (e).

SB21,4026 Section 4026. 238.397 of the statutes is renumbered 235.397, and 235.397 (1) (am), (c) and (d), (2) (a) (intro.) and 4. a. and d., (b) (intro.) and 8., (bg) (intro.), (br) (intro.), (c), (d) and (e), (3) (a), (b) 11. and (c), (4) (a), (c), (d) and (g), (5) (a), (b) and (d) 1. and 2. and (6) (a) (intro.) and (b), as renumbered, are amended to read:

SB21,1517,10 235.397 (1) (am) "Full-time job" has the meaning given in s. 238.30 235.30 (2m).

SB21,1517,11 (c) "Target population" has the meaning given in s. 238.30 235.30 (6).

SB21,1517,12 (d) "Tax benefits" has the meaning given in s. 238.30 235.30 (7).

SB21,1517,15 (2) (a) (intro.) Subject to pars. (c), (d), and (e), the corporation authority may designate an area as an enterprise development zone for a project if the corporation authority determines all of the following:

SB21,1517,18 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 corporation authority.

SB21,1517,22 d. In the 36 months immediately preceding the date on which the application under sub. (3) was submitted to the corporation authority, 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).

SB21,1517,24 (b) (intro.) In making a determination under par. (a), the corporation authority shall consider all of the following:

SB21,1517,25 8. Any other factors that the corporation authority considers relevant.

SB21,1518,3 (bg) (intro.) Notwithstanding par. (a) and subject to pars. (c), (d), and (e), the corporation authority may designate an area as an enterprise development zone for a project if the corporation authority determines all of the following:

SB21,1518,5 (br) (intro.) In making a determination under par. (bg), the corporation authority shall consider all of the following:

SB21,1518,9 (c) The corporation authority 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. 238.395 235.395, the designation of which is in effect.

SB21,1518,13 (d) The corporation authority may not designate more than 98 enterprise development zones unless the corporation authority obtains the approval of the joint committee on finance to do so. Of the enterprise development zones that the corporation authority designates, at least 10 shall be designated under par. (bg).

SB21,1518,15 (e) The corporation authority may not designate any area as an enterprise development zone on or after March 6, 2009.

SB21,1518,19 (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 corporation authority an application and a project plan.

SB21,1518,21 (b) 11. Any other information required by the corporation authority or the department of revenue.

SB21,1518,23 (c) The corporation authority may not accept or approve any applications or project plans submitted under par. (a) on or after March 6, 2009.

SB21,1519,3 (4) (a) Except as provided in par. (h), if the corporation authority 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 corporation authority shall certify the person as eligible for tax benefits.

SB21,1519,7 (c) When the corporation authority designates an area as an enterprise development zone for a project, the corporation authority 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.

SB21,1519,11 (d) The corporation authority shall notify the department of revenue of all persons entitled to claim tax benefits under this section, except that the corporation authority shall notify the office of the commissioner of insurance of all persons entitled to claim the credit under s. 76.636.

SB21,1519,13 (g) The corporation authority annually shall verify information submitted to the corporation authority under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

SB21,1519,17 (5) (a) When the corporation authority designates an area as an enterprise development zone under this section, the corporation authority shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d) and sub. (6).

SB21,1519,20 (b) When the corporation authority designates an area as an enterprise development zone under this section, the corporation authority shall establish a limit, not to exceed $3,000,000, for tax benefits for the enterprise development zone.

SB21,1519,25 (d) 1. Notwithstanding the length of time specified by the corporation authority under par. (a), the designation of an area as an enterprise development zone shall expire 90 days after the day on which the corporation authority determines that the forgone tax revenues under par. (c) will equal or exceed the limit established for the enterprise development zone.

SB21,1520,5 2. The corporation authority 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.

SB21,1520,8 (6) (a) (intro.) The corporation authority 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:

SB21,1520,10 (b) The corporation authority shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

SB21,4027 Section 4027. 238.398 of the statutes is renumbered 235.398, and 235.398 (2) (a) and (b), (3) (a) and (b), (4) (a) (intro.) and (b) and (5) (intro.) and (e), as renumbered, are amended to read:

SB21,1520,18 235.398 (2) (a) Except as provided under par. (c), the corporation authority 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 corporation authority under sub. (3) is eligible for tax benefits as provided in sub. (3).

SB21,1521,4 (b) The designation of an area as an agricultural development 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 benefits may be claimed in an agricultural development 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 agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The corporation authority 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.

SB21,1521,10 (3) (a) Except as provided under par. (c), the corporation authority 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 corporation authority shall consider, among other things, the number of jobs that will be created or retained by the business.

SB21,1521,16 (b) When the corporation authority certifies an agricultural business under this subsection, the corporation authority shall establish a limit on the amount of tax benefits that the business may claim. The corporation authority 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.

SB21,1521,18 (4) (a) (intro.) The corporation authority shall notify the department of revenue of all the following:

SB21,1521,21 (b) The corporation authority shall annually verify information submitted to the corporation authority under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.