SB468: Bill Text

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.

SB468,125,16 (c) The corporation department 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).

SB468,125,19 (e) The corporation department shall annually verify the information submitted to the corporation department by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

SB468,125,22 (f) (intro.) The corporation department shall adopt policies and procedures promulgate rules for the implementation and operation of this section, including policies and procedures rules relating to the following:

SB468,125,25 1. (intro.) The definitions of a tier I county or municipality and a tier II county or municipality. The corporation department may consider all of the following information when establishing the definitions required under this subdivision:

SB468,126,6 (6) Sunset. No tax benefits may be awarded under this section after December 31, 2015, unless the tax benefits were allocated to a taxpayer by the corporation Wisconsin Economic Development Corporation under s. 238.16, 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 issued before that date.

SB468,378 Section 378. 238.17 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.17 and amended to read:

SB468,126,14 555.17 Historic rehabilitation tax credit. For taxable years beginning after December 31, 2013, the corporation department may certify a person to claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6), if the corporation department determines that the person is conducting an eligible activity under s. 71.07 (9m), 71.28 (6), or 71.47 (6). 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.

SB468,379 Section 379. 238.23 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.23, and 555.23 (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:

SB468,126,21 555.23 (2) (a) Except as provided in par. (c), the corporation department 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 department under sub. (3) is eligible for a tax credit as provided in sub. (3).

SB468,127,6 (b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the corporation department first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the corporation department may allocate the amount of unallocated airport development zone tax credits, as provided under s. 238.3995 555.3995 (3) (b), to technology zones for which the $5,000,000 maximum allocation is insufficient. The corporation department 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.

SB468,127,9 (3) (a) (intro.) Except as provided in par. (e), the corporation department may certify for tax credits in a technology zone a business that satisfies all of the following requirements:

SB468,127,11 (b) (intro.) In determining whether to certify a business under this subsection, the corporation department shall consider all of the following:

SB468,127,19 (c) When the corporation department certifies a business under this subsection, the corporation department 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 department 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 department under par. (d) and sub. (5) (e), may claim a tax credit for up to 5 years.

SB468,128,2 (d) The corporation department 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.

SB468,128,4 (4) (a) (intro.) The corporation department shall notify the department of revenue of all the following:

SB468,128,7 (b) The corporation department shall annually verify information submitted to the corporation department under ss. 71.07 (2dm), (2dx), and (3g), 71.28 (1dm), (1dx), and (3g), and 71.47 (1dm), (1dx), and (3g).

SB468,128,9 (5) (intro.) The corporation department shall adopt rules for the operation of this section, including rules related to all the following:

SB468,128,13 (e) Standards for extending a business's certification, including what measures, in addition to job creation, the corporation department will use to determine the growth of a specific business and how the corporation department will establish baselines against which to measure growth.

SB468,128,15 (g) The exchange of information between the corporation department and the department of revenue.

SB468,380 Section 380. 238.25 of the statutes is renumbered 555.25 and amended to read:

SB468,128,22 555.25 Assistance to loan recipients. The corporation department shall assist new businesses and small businesses receiving the assistance of the Wisconsin Housing and Economic Development Authority in locating sources of venture capital and in obtaining the state and federal licenses and permits necessary for business operations.

SB468,381 Section 381. 238.26 of the statutes is renumbered 555.26 and amended to read:

SB468,129,4 555.26 Report to investment board. No later than September 30 of each even-numbered year, the corporation department shall submit to the investment board a report describing the types of investments in businesses in this state that will have the greatest likelihood of enhancing economic development in this state.

SB468,382 Section 382. Subchapter II (title) of chapter 238 [precedes 238.30] of the statutes is renumbered Subchapter II (title) of chapter 555 [precedes 555.30].

SB468,383 Section 383. 238.30 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.30, and 555.30 (intro.), (2g), (2m) (b) (intro.) and (7) (b) 1. and 2., (c), (d) and (e), as renumbered, are amended to read:

SB468,129,11 555.30 Definitions. (intro.) In this section and ss. 238.301 555.301 to 238.395 555.395 and 238.398 555.398:

SB468,129,12 (2g) "Eligible activity" means an activity described under s. 238.302 555.302.

SB468,129,16 (2m) (b) (intro.) The corporation department 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:

SB468,129,21 (7) (b) 1. Except as provided in subd. 2., in s. 238.395 555.395, "tax benefits" means 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. 238.395 555.395 (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).

SB468,129,25 2. With respect to the development opportunity zones under s. 238.395 555.395 (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).

SB468,130,3 (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.

SB468,130,6 (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.

SB468,130,8 (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).

SB468,384 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:

SB468,130,14 555.301 (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:

SB468,130,16 (e) Other information required by the corporation department or the department of revenue.

SB468,130,20 (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.

SB468,130,22 (b) The corporation department shall provide a person certified under this section with a copy of the certification.

SB468,130,25 (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:

SB468,131,3 (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).

SB468,131,5 (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).

SB468,131,8 (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.

SB468,131,10 (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.

SB468,385 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:

SB468,131,14 555.302 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):

SB468,131,17 (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.

SB468,131,21 (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.

SB468,131,25 (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.

SB468,386 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:

SB468,132,9 555.303 (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.

SB468,132,23 (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.

SB468,133,4 (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.

SB468,133,10 (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).

SB468,133,13 (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.

SB468,133,20 (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.

SB468,387 Section 387. 238.304 of the statutes is renumbered 555.304, and 555.304 (intro.) and (1), as renumbered, are amended to read:

SB468,134,2 555.304 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:

SB468,134,6 (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).

SB468,388 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:

SB468,134,20 555.3045 (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.

SB468,134,24 (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: