SB468: Bill Text

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.

SB468,156,13 (f) The corporation department shall notify the department of revenue within 30 days after revoking an entitlement under par. (e).

SB468,407 Section 407. 238.397 of the statutes is renumbered 555.397, and 555.397 (1) (am), (c) and (d), (2) (a) (intro.), 3. and 4. a. and d., (b) (intro.) and 8., (bg) (intro.) and 2. and (br) (intro.), (c), (d) and (e), (3) (a), (b) 11. and (c), (4) (a), (c), (d) and (g), (5) (a), (b), (c) and (d) 1. and 2. and (6) (a) (intro.) and (b), as renumbered, are amended to read:

SB468,156,20 555.397 (1) (am) "Full-time job" has the meaning given in s. 238.30 555.30 (2m).

SB468,156,21 (c) "Target population" has the meaning given in s. 238.30 555.30 (6).

SB468,156,22 (d) "Tax benefits" has the meaning given in s. 238.30 555.30 (7).

SB468,156,25 (2) (a) (intro.) Subject to pars. (c), (d), and (e), the corporation department may designate an area as an enterprise development zone for a project if the corporation department determines all of the following:

SB468,157,2 3. That the project is not likely to occur or continue without the corporation's department's designation of the area as an enterprise development zone.

SB468,157,5 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 department.

SB468,157,9 d. In the 36 months immediately preceding the date on which the application under sub. (3) was submitted to the corporation department, 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).

SB468,157,11 (b) (intro.) In making a determination under par. (a), the corporation department shall consider all of the following:

SB468,157,12 8. Any other factors that the corporation department considers relevant.

SB468,157,15 (bg) (intro.) Notwithstanding par. (a) and subject to pars. (c), (d), and (e), the corporation department may designate an area as an enterprise development zone for a project if the corporation department determines all of the following:

SB468,157,17 2. That the project is not likely to occur or continue without the corporation's department's designation of the area as an enterprise development zone.

SB468,157,19 (br) (intro.) In making a determination under par. (bg), the corporation department shall consider all of the following:

SB468,157,23 (c) The corporation department 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. 238.395 555.395, the designation of which is in effect.

SB468,158,2 (d) The corporation department may not designate more than 98 enterprise development zones unless the corporation department obtains the approval of the joint committee on finance to do so. Of the enterprise development zones that the corporation department designates, at least 10 shall be designated under par. (bg).

SB468,158,4 (e) The corporation department may not designate any area as an enterprise development zone on or after March 6, 2009.

SB468,158,8 (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 department an application and a project plan.

SB468,158,10 (b) 11. Any other information required by the corporation department or the department of revenue.

SB468,158,12 (c) The corporation department may not accept or approve any applications or project plans submitted under par. (a) on or after March 6, 2009.

SB468,158,17 (4) (a) Except as provided in par. (h), if the corporation department 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 department shall certify the person as eligible for tax benefits.

SB468,158,21 (c) When the corporation department designates an area as an enterprise development zone for a project, the corporation department 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.

SB468,158,25 (d) The corporation department shall notify the department of revenue of all persons entitled to claim tax benefits under this section, except that the corporation department shall notify the office of the commissioner of insurance of all persons entitled to claim the credit under s. 76.636.

SB468,159,3 (g) The corporation department annually shall verify information submitted to the corporation department under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

SB468,159,7 (5) (a) When the corporation department designates an area as an enterprise development zone under this section, the corporation department shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d) and sub. (6).

SB468,159,10 (b) When the corporation department designates an area as an enterprise development zone under this section, the corporation department shall establish a limit, not to exceed $3,000,000, for tax benefits for the enterprise development zone.

SB468,159,13 (c) Annually, the corporation department shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each enterprise development zone.

SB468,159,18 (d) 1. Notwithstanding the length of time specified by the corporation department under par. (a), the designation of an area as an enterprise development 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 established for the enterprise development zone.

SB468,159,23 2. The corporation department 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.

SB468,160,3 (6) (a) (intro.) The corporation department 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:

SB468,160,5 (b) The corporation department shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

SB468,408 Section 408. 238.398 of the statutes is renumbered 555.398, and 555.398 (2) (a) and (b), (3) (a) and (b), (4) (a) (intro.) and (b) and (5) (intro.) and (e), as renumbered, are amended to read:

SB468,160,13 555.398 (2) (a) Except as provided under par. (c), the corporation department 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 department under sub. (3) is eligible for tax benefits as provided in sub. (3).

SB468,160,24 (b) The designation of an area as an agricultural development 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 benefits may be claimed in an agricultural development 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 agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The corporation department 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.

SB468,161,6 (3) (a) Except as provided under par. (c), the corporation department 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 department shall consider, among other things, the number of jobs that will be created or retained by the business.

SB468,161,12 (b) When the corporation department certifies an agricultural business under this subsection, the corporation department shall establish a limit on the amount of tax benefits that the business may claim. The corporation department 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.

SB468,161,14 (4) (a) (intro.) The corporation department shall notify the department of revenue of all the following:

SB468,161,17 (b) The corporation department shall annually 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.

SB468,161,19 (5) (intro.) The corporation department shall adopt rules for the operation of this section, including rules related to all the following:

SB468,161,21 (e) The exchange of information between the corporation department and the department of revenue.

SB468,409 Section 409. 238.399 of the statutes, as affected by 2015 Wisconsin Act 55, is renumbered 555.399, and 555.399 (1) (am) 2. (intro.), (3) (a), (b) (intro.), (bm), (c) and (d), (5) (intro.), (b), (c) 1. a. and b. and 2. b. and c., (d) 1. and (e), (5m) and (6) (b) (intro.), (d), (e), (f) and (g) (intro.) and 1. (intro.), as renumbered, are amended to read:

SB468,162,4 555.399 (1) (am) 2. (intro.) The corporation department may grant exceptions to the requirement under subd. 1. that a full-time employee means an individual who, as a condition of employment, is required to work at least 2,080 hours per year if all of the following apply:

SB468,162,6 (3) (a) The corporation department may designate not more than 30 enterprise zones.

SB468,162,8 (b) (intro.) In determining whether to designate an area under par. (a), the corporation department shall consider all of the following:

SB468,162,11 (bm) The corporation department shall specify whether an enterprise zone designated under par. (a) is located in a tier I county or municipality or a tier II county or municipality.