SB468: Bill Text

SB468,145,3 (6) The corporation department may not accept any applications under sub. (1) to change the boundaries of a development zone designated under s. 238.31 555.31 on or after March 6, 2009.

SB468,398 Section 398. 238.345 of the statutes is renumbered 555.345, and 555.345 (1) (a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3) (intro.), (a) and (b), as renumbered, are amended to read:

SB468,145,9 555.345 (1) (a) The designation of an area as a development zone shall be effective for 240 months, beginning on the day the corporation department notifies the local governing body under s. 238.325 555.325 (3) of the designation.

SB468,145,14 (b) The local governing body may apply to the corporation department for one 60-month extension of the designation. The corporation department shall adopt rules establishing criteria for approving an extension of a designation of an area as a development zone under this subsection. No applications may be accepted by the corporation department under this paragraph on or after March 6, 2009.

SB468,145,17 (2) (a) When the corporation department designates a development zone under s. 238.31 555.31, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone a portion of $38,155,000.

SB468,145,21 (am) Notwithstanding par. (a), the corporation department may increase the established limit for tax benefits for a development zone. The corporation department may not increase the limit for tax benefits established for any development zone designated under s. 238.31 555.31 on or after March 6, 2009.

SB468,145,23 (b) Annually the corporation department shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development zone.

SB468,146,3 (c) 1. Ninety days after the day on which the corporation department determines that the forgone tax revenues under par. (b) will equal or exceed the limit for the development zone established under par. (a) or (am).

SB468,146,5 2. The day that the corporation department withdraws its designation of an area as a development zone under sub. (3).

SB468,146,7 (d) The corporation department shall immediately notify the local governing body of a change in the expiration date of the development zone under par. (c).

SB468,146,9 (3) (intro.) The corporation department may withdraw the designation of an area as a development zone if any of the following applies:

SB468,146,13 (a) No person is certified as eligible to receive tax benefits under s. 238.365 555.365 (3) during the 12-month period beginning on the day the area is designated as a development zone and the corporation department determines that the local governing body that nominated the zone is not in compliance with s. 238.363 555.363.

SB468,146,16 (b) No person is certified as eligible to receive tax benefits under s. 238.365 555.365 (3) during the 24-month period beginning on the day the area is designated a development zone.

SB468,399 Section 399. 238.35 of the statutes is renumbered 555.35, and 555.35 (intro.), (6), (7), (8) and (10), as renumbered, are amended to read:

SB468,146,20 555.35 Additional duties of the corporation department. (intro.) The corporation department shall do all of the following:

SB468,147,2 (6) Notify University of Wisconsin small business development centers, the Wisconsin housing and development centers, the central administration of all University of Wisconsin campuses and regional planning commissions about the development zone program and encourage those entities to provide advice to the corporation department or local governing bodies on ways to improve the development zone program.

SB468,147,3 (7) Prepare forms for the certification described under s. 238.365 555.365 (5).

SB468,147,5 (8) Annually verify information submitted to the corporation department under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

SB468,147,9 (10) Enter into an agreement with the local governing body of a 1st class city where a development zone is designated under s. 238.31 555.31 (3) (c) 1. to provide efficient administration of the development zone program within the development zone.

SB468,400 Section 400. 238.363 of the statutes is renumbered 555.363, and 555.363 (1) (intro.) and (c) and (4), as renumbered, are amended to read:

SB468,147,14 555.363 (1) (intro.) If an area nominated by a local governing body is designated as a development zone under s. 238.31 555.31, the local governing body shall do all of the following:

SB468,147,16 (c) Assist the corporation department in the administration of the development zone program.

SB468,147,20 (4) The local governing body of a 1st class city where a development zone is designated under s. 238.31 555.31 (3) (c) 1. shall enter into an agreement with the corporation department to provide efficient administration of the development zone program within the development zone.

SB468,401 Section 401. 238.365 of the statutes is renumbered 555.365, and 555.365 (intro.), (2), (3) (intro.), (b) and (j) and (5) (g) and (h), as renumbered, are amended to read:

SB468,147,25 555.365 Certification for tax benefits. (intro.) The corporation department shall do all of the following:

SB468,148,2 (2) Determine whether a person applying for tax benefits engages or will engage in economic activity that violates s. 238.38 555.38 (1).

SB468,148,5 (3) (intro.) Subject to s. 238.38 555.38, certify persons who are eligible to claim tax benefits while an area is designated as a development zone, according to the following criteria:

SB468,148,7 (b) The person's commitment not to engage in economic activity that violates s. 238.38 555.38 (1).

SB468,148,9 (j) Any other criteria established under rules adopted by the corporation department.

SB468,148,11 (5) (g) The limit under s. 238.368 555.368 on tax benefits the person may claim while an area is designated as a development zone.

SB468,148,13 (h) Other information required by the corporation department or the department of revenue.

SB468,402 Section 402. 238.368 of the statutes is renumbered 555.368, and 555.368 (1) (a) and (b) (intro.), 1. and 2., (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are amended to read:

SB468,148,19 555.368 (1) (a) The corporation department shall establish a limit on the maximum amount of tax benefits a person certified under s. 238.365 555.365 (3) may claim while an area is designated as a development zone.

SB468,148,21 (b) (intro.) When establishing a limit on tax benefits under par. (a), the corporation department shall do all of the following:

SB468,148,22 1. Consider all of the criteria described in s. 238.365 555.365 (3) (a) to (e).

SB468,149,2 2. Establish a limit which does not greatly exceed a recommended limit, established under rules adopted by the corporation department based on the cost, number and types of full-time jobs that will be created, retained, or upgraded, including full-time jobs available to members of the targeted population, as a result of the economic activity of the person certified under s. 238.365 555.365 (3).

SB468,149,5 (2) (intro.) The corporation department may, upon request, increase a limit on tax benefits established under sub. (1) if the corporation department does all of the following:

SB468,149,8 (b) Revises the certification required under s. 238.365 555.365 (5) and provides a copy of the revised form to the department of revenue and the person whose limit is increased under this subsection.

SB468,149,11 (3) (a) (intro.) The corporation department may reduce a limit established under sub. (1) or (2) if the corporation department determines that any of the following applies:

SB468,149,13 1. The limit is not consistent with the criteria listed under s. 238.365 555.365 (3) (a) to (e).

SB468,149,16 (b) The corporation department 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.

SB468,403 Section 403. 238.37 of the statutes is renumbered 555.37, and 555.37 (1) (intro.) and (b) and (2), as renumbered, are amended to read:

SB468,149,20 555.37 (1) (intro.) The corporation department shall revoke the certification of a person certified under s. 238.365 555.365 (3) if the person does any of the following:

SB468,149,21 (b) Becomes subject to revocation under s. 238.38 555.38 (1).

SB468,149,23 (2) The corporation department shall notify the department of revenue within 30 days of revoking a certification under sub. (1).

SB468,404 Section 404. 238.38 of the statutes is renumbered 555.38, and 555.38 (1) (intro.), (1m), (2) (intro.) and (a) and (3) (a) and (b), as renumbered, are amended to read:

SB468,150,8 555.38 (1) (intro.) Except as provided in subs. (2) and (3), no person may be certified under s. 238.365 555.365 (3), or a person's certification may be revoked under s. 238.37 555.37, 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:

SB468,150,10 (1m) No person may be certified under s. 238.365 555.365 (3) on or after March 6, 2009.

SB468,150,13 (2) (intro.) Subsection (1) does not apply if, after a hearing, the corporation department, or the local governing body under sub. (3) (a), determines that any of the following applies:

SB468,150,16 (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. 238.365 555.365 (3) or if the person's certification were revoked.

SB468,150,23 (3) (a) Except as provided in pars. (b) and (c), if the economic activity for which a person is seeking certification under s. 238.365 555.365 (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. 238.32 555.32 shall determine whether sub. (2) (a) or (b) applies.

SB468,151,4 (b) Only the corporation department 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.

SB468,405 Section 405. 238.385 of the statutes is renumbered 555.385, and 555.385 (1) (intro.) and (bm) and (2) (intro.), (b) and (c), as renumbered, are amended to read:

SB468,151,11 555.385 (1) (intro.) For the development zone program under ss. 238.30 555.30 and 238.31 555.31 to 238.38 555.38, the development opportunity zone program under s. 238.395 555.395, and the enterprise development zone program under s. 238.397 555.397, the corporation department shall adopt rules that further define a person's eligibility for tax benefits. The rules shall do at least all of the following:

SB468,151,15 (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 department determines that the person made a significant capital investment to retain the full-time job.

SB468,151,18 (2) (intro.) The corporation department may by rule specify circumstances under which the corporation department may grant exceptions to any of the following:

SB468,151,20 (b) The requirement under ss. 238.30 555.30 (2m) and 238.397 555.397 (1) (am) that an individual's pay must equal at least 150% of the federal minimum wage.

SB468,151,24 (c) The requirement under ss. 238.30 555.30 (2m) and 238.397 555.397 (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.

SB468,406 Section 406. 238.395 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.395, and 555.395 (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. and (d), (4) (intro.) and (5) (a) (intro.), 2. and 3., (b), (c), (d), (e) (intro.) and 3. and (f), as renumbered, are amended to read:

SB468,152,8 555.395 (1) (a) An area in the city of Beloit, the legal description of which is provided to the corporation department by the local governing body of the city of Beloit.

SB468,152,10 (b) An area in the city of West Allis, the legal description of which is provided to the corporation department by the local governing body of the city of West Allis.

SB468,152,12 (c) An area in the city of Eau Claire, the legal description of which is provided to the corporation department by the local governing body of the city of Eau Claire.

SB468,152,14 (d) An area in the city of Kenosha, the legal description of which is provided to the corporation department by the local governing body of the city of Kenosha.

SB468,152,16 (e) An area in the city of Milwaukee, the legal description of which is provided to the corporation department by the local governing body of the city of Milwaukee.

SB468,152,19 (f) For the Gateway Project, an area in the city of Beloit, the legal description of which is provided to the corporation department by the local governing body of the city of Beloit.

SB468,152,21 (g) An area in the city of Janesville, the legal description of which is provided to the corporation department by the local governing body of the city of Janesville.

SB468,152,23 (h) An area in the city of Kenosha, the legal description of which is provided to the corporation department by the local governing body of the city of Kenosha.

SB468,152,25 (i) An area in the city of Beloit, the legal description of which is provided to the corporation department by the local governing body of the city of Beloit.

SB468,153,3 (2) (c) Annually, the corporation department shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development opportunity zone.

SB468,153,7 (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 department determines that the forgone tax revenues under par. (c) will equal or exceed the limit for the development opportunity zone.

SB468,153,10 2. The corporation department 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.

SB468,153,17 (e) 1. The corporation department may extend the designation of an area under sub. (1) (g) as a development opportunity zone for an additional 60 months if the corporation department determines that an extension under this subdivision would support economic development within the city. If the corporation department 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.

SB468,153,24 2. The corporation department may extend the designation of an area under sub. (1) (h) as a development opportunity zone for an additional 60 months if the corporation department determines that an extension under this subdivision would support economic development within the city. If the corporation department 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.

SB468,154,6 3. The corporation department may extend the designation of an area under sub. (1) (i) as a development opportunity zone for an additional 60 months if the corporation department determines that an extension will support economic development within the city. If the corporation department 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.

SB468,154,12 (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 department 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.

SB468,154,18 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 department 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.

SB468,154,24 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 department no later than July 1, 2000, shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

SB468,155,6 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 department shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

SB468,155,8 (b) 9. Other information required by the corporation department or the department of revenue.

SB468,155,11 (d) The corporation department annually shall verify information submitted to the corporation department under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.

SB468,155,13 (4) (intro.) The corporation department shall revoke the entitlement of a person to claim tax benefits under sub. (3) if the person does any of the following:

SB468,155,17 (5) (a) (intro.) The corporation department 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:

SB468,155,20 2. The corporation department 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.

SB468,155,23 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 department.

SB468,156,2 (b) A person intending to claim tax benefits under this subsection shall submit to the corporation department an application, in the form required by the corporation department, containing information required by the corporation department and by the department of revenue.

SB468,156,4 (c) The corporation department shall notify the department of revenue of all persons certified to claim tax benefits under this subsection.

SB468,156,7 (d) The corporation department annually shall verify information submitted to the corporation department under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.

SB468,156,9 (e) (intro.) The corporation department shall revoke the entitlement of a person to claim tax benefits under this subsection if the person does any of the following:

SB468,156,11 3. Does not pass the benefits through to the other person conducting the economic activity under par. (a) 1., as determined by the corporation department.