SB468: Bill Text

SB468,362 Section 362. 238.08 of the statutes is repealed.

SB468,363 Section 363. 238.09 of the statutes is repealed.

SB468,364 Section 364. 238.10 of the statutes is renumbered 555.10 and amended to read:

SB468,112,19 555.10 (1) Allocation. The corporation department shall establish under 26 USC 146 and administer a system for the allocation of the volume cap on the issuance of private activity bonds, as defined under 26 USC 141 (a), among all municipalities, as defined in s. 67.01 (5), and any corporation formed on behalf of those municipalities, and among this state, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, and the Wisconsin Housing and Economic Development Authority.

SB468,112,25 (2) Amendment to allocation. At any time prior to December 31 in any year, the corporation department may adopt rules to revise the allocation system established for that year under sub. (1), except that any revision under this subsection does not apply to any allocation under which the recipient of that allocation has adopted a resolution authorizing the issuance of a private activity bond, as defined in 26 USC 141 (a).

SB468,113,5 (3) Conditions. The corporation department may establish any procedure for, and place any condition upon, the granting of an allocation under this section which the corporation department deems to be in the best interest of the state including a requirement that a cash deposit, at a rate established by the corporation department, be a condition for an allocation.

SB468,113,8 (4) Certification. If the corporation department receives notice of the issuance of a bond under an allocation under subs. (1) to (3), the corporation department shall certify that that bond meets the requirements of 26 USC 146.

SB468,365 Section 365. 238.11 of the statutes is renumbered 555.11 and amended to read:

SB468,113,17 555.11 (1) The corporation department shall prescribe the notice forms to be used under s. 66.1103 (4m) (a) 1. The corporation department shall include on the forms a requirement for information on the number of jobs the person submitting the notice expects to be eliminated, created, or maintained on the project site and elsewhere in this state by the project which is the subject of the notice. The corporation department shall prescribe the forms to be used under s. 66.1103 (4m) (b).

SB468,113,23 (2) If the corporation department receives a notice under s. 66.1103 (4m) (a), the corporation department shall estimate, no later than 20 days after receipt of the notice, whether the project that is the subject of the notice is expected to eliminate, create, or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created, or maintained as a result of the project.

SB468,114,3 (5) The corporation department shall issue an estimate made under sub. (2) to the city, village, town, or county which will issue the bonds to finance the project which is the subject of the estimate.

SB468,366 Section 366. 238.115 of the statutes, as created by 2015 Wisconsin Act 55, is renumbered 555.115, and 555.115 (1) (intro.), (a), (b), (e) and (g), (2) and (3), as renumbered, are amended to read:

SB468,114,10 555.115 (1) Corporation Department obligations. (intro.) No later than the end of the first month following each quarter, the corporation department shall provide to the department of revenue all of the following information for the previous quarter:

SB468,114,12 (a) The identity of each person the corporation department certified for tax credits under this chapter and, for each person, the amount certified.

SB468,114,16 (b) The identity of each person the corporation department verified to claim tax credits under this chapter based on the person's satisfaction of all applicable requirements to be eligible to claim the tax credits and, for each person, the amount verified.

SB468,114,18 (e) The identity of each person for whom the corporation department revoked a certification for tax credits and, for each person, the amount revoked.

SB468,114,21 (g) Any other information the department of revenue and the corporation department agree is necessary to accurately track certification, verification, transfer, and usage of tax credits under this chapter.

SB468,114,24 (2) Each person the corporation department certifies for tax credits under this chapter shall provide all information necessary for the corporation department to comply with the reporting requirements under sub. (1).

SB468,115,4 (3) The department of revenue shall track the amount of all tax credits administered by the corporation department under this chapter that have been claimed or used to offset tax liability and the amount of all available unused tax credits under this chapter.

SB468,367 Section 367. 238.12 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.12 and amended to read:

SB468,115,8 555.12 Repayment of grants, loans, and tax benefits. (1) (intro.) In this section, "tax:

SB468,115,10 (b) "Tax benefits" means the credits under ss. 71.07 (2dm), (2dx), (3g), and (3t), 71.28 (1dm), (1dx), (3g), and (3t), 71.47 (1dm), (1dx), (3g), and (3t), and 76.636.

SB468,115,13 555.12 (2) The corporation may not award a grant or loan under this chapter to a person or certify a person to receive tax benefits unless the corporation enters into an agreement with the person that requires does all of the following:

SB468,115,18 (a) Requires the person to repay the grant, loan, or tax benefits if, within 5 years after receiving the grant or loan or being certified to receive tax benefits, the person ceases to conduct in this state the economic activity for which the person received the grant or loan or for which the person was certified to receive tax benefits and commences substantially the same economic activity outside this state.

SB468,368 Section 368. 238.123 of the statutes, as created by 2015 Wisconsin Act 55, is repealed.

SB468,369 Section 369. 238.125 of the statutes is renumbered 555.125 and amended to read:

SB468,115,25 555.125 Notification of position openings; compliance. The corporation department shall monitor compliance with the position-opening notification requirements under ss. 66.1103 (6m) and 106.16.

SB468,370 Section 370. 238.127 of the statutes is renumbered 555.127, and 555.127 (2) (intro.), (c) (intro.), (e), (h) and (j), as renumbered, are amended to read:

SB468,116,8 555.127 (2) (intro.) The corporation department shall establish and administer a state main street program to coordinate state and local participation in programs offered by the national main street center, created by the national trust for historic preservation, to assist municipalities in planning, managing and implementing programs for the revitalization of business areas. The corporation department shall do all of the following:

SB468,116,11 (c) (intro.) With help from interested individuals and organizations, develop a plan describing the objectives of the state main street program and the methods by which the corporation department shall:

SB468,116,20 (e) Annually select, upon application, up to 5 municipalities to participate in the state main street program. The program for each municipality shall conclude after 3 years, except that the program for each municipality selected after July 29, 1995, shall conclude after 5 years. The corporation department shall select program participants representing various geographical regions and populations. A municipality may apply to participate, and the corporation department may select a municipality for participation, more than one time. In selecting a municipality, however, the corporation department may give priority to those municipalities that have not previously participated.

SB468,116,24 (h) Provide training, technical assistance and information on the revitalization of business areas to municipalities which do not participate in the state main street program. The corporation department may charge reasonable fees for the services and information provided under this paragraph.

SB468,117,2 (j) The corporation department shall expend at least $250,000 annually on the state main street program.

SB468,371 Section 371. 238.13 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.13, and 555.13 (2) (a) (intro.), (3) (intro.) and (f) and (5), as renumbered, are amended to read:

SB468,117,7 555.13 (2) (a) (intro.) The corporation department may make a grant to a person if all of the following apply:

SB468,117,9 (3) (intro.) The corporation department may consider the following criteria in making awards under this section:

SB468,117,11 (f) Any other factors considered by the corporation department to be relevant to assessing the viability and feasibility of the project.

SB468,117,14 (5) Before the corporation department awards a grant under this section, the corporation department shall consider the recommendations of the department of natural resources.

SB468,372 Section 372. 238.133 of the statutes is renumbered 555.133, and 555.133 (2) (title), (a), (b), (c) and (d), (3) (intro.), (4), (5) (intro.) and (c) and (7), as renumbered, are amended to read:

SB468,117,18 555.133 (2) (title) Duties of the corporation department.

SB468,117,22 (a) The corporation department shall administer a program to award brownfield site assessment grants from the appropriation under s. 20.192 20.143 (1) (s) to local governmental units for the purposes of conducting any of the eligible activities under sub. (3).

SB468,117,25 (b) The corporation department may not award a grant to a local governmental unit under this section if that local governmental unit caused the environmental contamination that is the basis for the grant request.

SB468,118,4 (c) The corporation department may only award grants under this section if the person that caused the environmental contamination that is the basis for the grant request is unknown, cannot be located or is financially unable to pay the cost of the eligible activities.

SB468,118,8 (d) The corporation department shall establish criteria as necessary to administer the program. The corporation department may limit the total amount of funds that may be used to cover the costs of each category of eligible activity described in sub. (3).

SB468,118,10 (3) (intro.) The corporation department may award grants to local governmental units to cover the costs of the following activities:

SB468,118,13 (4) The applicant shall submit an application on a form prescribed by the corporation department and shall include any information that the corporation department finds necessary to calculate the amount of a grant.

SB468,118,15 (5) (intro.) The corporation department shall consider the following criteria when determining whether to award a grant:

SB468,118,17 (c) Other criteria that the corporation department finds necessary to calculate the amount of a grant.

SB468,118,20 (7) The corporation department may not distribute a grant unless the applicant contributes matching funds equal to 20% of the grant. Matching funds may be in the form of cash or in-kind contribution or both.

SB468,373 Section 373. 238.135 of the statutes is renumbered 555.135 and amended to read:

SB468,119,2 555.135 Grants to regional economic development organizations. The corporation department shall award annual grants to regional economic development organizations to fund marketing activities. The amount of each grant may not exceed $100,000 or the amount of matching funds the organization obtains from sources other than the corporation or the state, whichever is less.

SB468,374 Section 374. 238.14 of the statutes, as created by 2015 Wisconsin Act 55, is renumbered 555.14 and amended to read:

SB468,119,9 555.14 St. Croix Valley Business Incubator. From the appropriation under s. 20.192 20.143 (1) (a), the corporation department shall make a grant of $250,000 to the River Falls Economic Development Corporation to construct the St. Croix Valley Business Incubator. The corporation department may award the grant under this section only if federal moneys are secured for the same purpose.

SB468,375 Section 375. 238.145 of the statutes, as created by 2015 Wisconsin Act 55, is renumbered 555.145, and 555.145 (1) (a), (2) (a), (b) and (c), (3) (a) and (b), (5) (a) and (b) (intro.), 1., 2. and 3. and (6), as renumbered, are amended to read:

SB468,119,14 555.145 (1) (a) "Eligible recipient" means a person the corporation department certifies under sub. (2) (b) as eligible to receive grants under this section.

SB468,119,16 (2) (a) The corporation department shall implement an economic development program to award grants under this section.

SB468,119,19 (b) The corporation department may certify a person as eligible to receive grants under this section as provided in policies and procedures rules adopted by the corporation department under sub. (6).

SB468,119,21 (c) The corporation department may not certify a person under par. (b) after June 30, 2017.

SB468,119,23 (3) (a) From the appropriation under s. 20.192 20.143 (1) (a), the corporation department may award up to a total of $500,000 in grants to eligible recipients.

SB468,120,3 (b) The corporation department may not award grants totaling more than $75,000 to each eligible recipient, and the corporation department may not award a grant of more than $25,000 to an eligible recipient in any year.

SB468,120,8 (5) (a) The corporation department shall award grants under this section annually, on a competitive basis, based on an eligible recipient's financial need; and, subject to the limitations under par. (b), the corporation department may not take into account whether an eligible recipient was previously awarded a grant under this section in determining whether to award a grant to the eligible recipient.

SB468,120,10 (b) (intro.) The corporation department may award no more than 3 annual grants to each eligible recipient, as follows:

SB468,120,12 1. In the first grant year, the corporation department may contribute up to 75 percent of the eligible recipient's equipment expenditures under sub. (4).

SB468,120,14 2. In the 2nd grant year, the corporation department may contribute up to 50 percent of the eligible recipient's equipment expenditures under sub. (4).

SB468,120,16 3. In the 3rd grant year, the corporation department may contribute up to 25 percent of the eligible recipient's equipment expenditures under sub. (4).

SB468,120,18 (6) The corporation department shall adopt policies and procedures promulgate rules to implement the grant program under this section.

SB468,376 Section 376. 238.15 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.15, and 555.15 (1) (intro.) and (m) 1. (intro.) and c. and 3., (2) and (3) (a), (d) (intro.), 1. and 2. a. and b., (dm), (e) and (f) 1., as renumbered, are amended to read:

SB468,121,6 555.15 (1) Angel investment tax credits. (intro.) The corporation department 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 department 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 department may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). The corporation department may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB468,121,14 (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 department 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 rules 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:

SB468,121,16 c. The activities of the business's headquarters, as determined by the corporation department.

SB468,121,19 3. Subdivision 1. does not apply to a business that the corporation department 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.

SB468,122,8 (2) Early stage seed investment tax credits. The corporation department shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. An investment fund manager desiring certification shall submit an application to the corporation department. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the corporation department may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether to certify an investment fund manager, the corporation department shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The corporation department may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

SB468,122,12 (3) (a) List of certified businesses and investment fund managers. The corporation department shall maintain a list of businesses certified under sub. (1) and investment fund managers certified under sub. (2) and shall permit public access to the lists through the corporation's department's Internet Web site.

SB468,123,5 (d) Administration. (intro.) The corporation department, in consultation with the department of revenue, shall establish policies and procedures promulgate rules to administer this section and shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) and of 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) is $30,000,000 per calendar year. The policies and procedures rules shall provide that a person who receives a credit under s. 71.07 (5b) 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 department, 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 department, occurs during the 3-year period. The policies and procedures rules shall permit the corporation department to reallocate credits under this section in any calendar year that are unused in that calendar year to a person eligible for tax benefits, as defined under s. 238.30 555.30 (7) (e), if all of the following apply:

SB468,123,7 1. The corporation department notifies the joint committee on finance in writing of its proposed reallocation.

SB468,123,11 2. a. The cochairpersons of the joint committee on finance fail to notify the corporation department, within 14 working days after the date of the corporation's department's notification under subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.

SB468,123,13 b. The cochairpersons of the joint committee on finance notify the corporation department that the committee has approved the proposed reallocation.

SB468,123,18 (dm) The corporation's policies and procedures department's rules under this subsection shall provide that a business is considered to have not relocated outside of this state under sub. (1) (m) 1., regardless of whether the business satisfies sub. (1) (m) 1. a. and b., if the corporation department determines that the business's investment and employment levels in this state have not diminished.

SB468,124,3 (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 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 receives prior authorization from the investment fund manager and the manager then notifies the corporation department 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 department may charge any person selling or otherwise transferring a credit under this paragraph a fee of up to 5 percent of the credit amount sold or transferred.

SB468,124,6 (f) 1. Beginning with December 31, 2014, tax credits that the corporation department has not allocated under this section on or before December 31 of each year may not be allocated after that date.

SB468,377 Section 377. 238.16 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.16, and 555.16 (1) (c) 2. (intro.), (2) (intro.) and (b), (3), (4) (b) 1. (intro.) and 2. and (c), (5) (title), (c), (e) and (f) (intro.) and 1. (intro.) and (6), as renumbered, are amended to read:

SB468,124,14 555.16 (1) (c) 2. (intro.) The corporation department 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:

SB468,124,16 (2) (intro.) The corporation department may certify a person to receive tax benefits under this section if all of the following apply:

SB468,124,18 (b) The person applies under this section and enters into a contract with the corporation department.

SB468,124,25 (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 department under its policies and procedures rules, and one of the following applies:

SB468,125,5 (4) (b) 1. (intro.) The corporation department 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:

SB468,125,8 2. The corporation department may award to a person certified under sub. (2) tax benefits in an amount to be determined by the corporation department for costs incurred by the person to undertake the training activities described in sub. (3) (c).

SB468,125,12 (c) Subject to a reallocation by the corporation department pursuant to policies and procedures rules adopted under s. 238.15 555.15 (3) (d), the corporation department may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

SB468,125,13 (5) (title) Duties of the corporation department.