SB468: Bill Text

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.

SB468,162,13 (c) The corporation department shall, to the extent possible, give preference to the greatest economic need.

SB468,162,20 (d) Notwithstanding pars. (b) and (c), the corporation department shall designate as enterprise zones at least 3 areas comprising political subdivisions whose populations total less than 5,000 and at least 2 areas comprising political subdivisions whose populations total 5,000 or more but less than 30,000. In designating an enterprise zone under this paragraph, the corporation department may consider indicators of an area's economic need and the effect of designation on other economic development activities.

SB468,162,22 (5) Certification. (intro.) The corporation department may certify for tax benefits any of the following:

SB468,163,2 (b) A business that relocates to an enterprise zone from outside this state, if the business offers compensation and benefits to its employees working in the zone for the same type of work that are at least as favorable as those offered to its employees working outside the zone, as determined by the corporation department.

SB468,163,5 (c) 1. a. The business enters into an agreement with the corporation department to claim tax benefits only for years during which the business maintains the increased level of personnel.

SB468,163,9 b. The business offers compensation and benefits for the same type of work to its employees working in the enterprise zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the corporation department.

SB468,163,12 2. b. The business enters into an agreement with the corporation department to claim tax benefits only for years during which the business maintains the capital investment.

SB468,163,16 c. The business offers compensation and benefits for the same type of work to its employees working in the zone that are at least as favorable as those offered to its employees working in this state but outside the zone, as determined by the corporation department.

SB468,163,18 (d) 1. The business is a manufacturer with a significant supply chain in the state, as determined by the corporation department.

SB468,163,21 (e) A business located in an enterprise zone if the business purchases tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined by the corporation department.

SB468,164,5 (5m) Additional tax benefits for significant capital expenditures. If the corporation department determines that a business certified under sub. (5) makes a significant capital expenditure in the enterprise zone, the corporation department may certify the business to receive additional tax benefits in an amount to be determined by the corporation department, but not exceeding 10 percent of the business' capital expenditures. The corporation department shall, in a manner determined by the corporation department, allocate the tax benefits a business is certified to receive under this subsection over the remainder of the time limit of the enterprise zone under sub. (4).

SB468,164,7 (6) (b) (intro.) The corporation department shall revoke a certification under sub. (5) if the business does any of the following:

SB468,164,11 (d) The corporation department may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment levels or a significant capital investment in property required by an agreement under sub. (5) (c).

SB468,164,14 (e) The corporation department shall determine the maximum amount of the tax credits under ss. 71.07 (3w), 71.28 (3w), and 71.47 (3w) that a certified business may claim and shall notify the department of revenue of this amount.

SB468,164,17 (f) The corporation department shall annually verify the information submitted to the corporation department under ss. 71.07 (3w), 71.28 (3w), or 71.47 (3w).

SB468,164,19 (g) (intro.) The corporation department shall adopt policies and procedures promulgate rules specifying all of the following:

SB468,164,22 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:

SB468,410 Section 410. 238.3995 of the statutes is renumbered 555.3995, and 555.3995 (1) (b) and (c), (2) (a) (intro.) and 4., (b) (intro.) and 8., (c) 1. and 2. and (d), (3) (a), (b), (c) and (d) 1. and 2., (4) (a) (intro.) and 10., (am), (ar), (b) 1., (c) (intro.) and (d) and (5), as renumbered, are amended to read:

SB468,165,3 555.3995 (1) (b) "Full-time job" has the meaning given in s. 238.30 555.30 (2m).

SB468,165,4 (c) "Target population" has the meaning given in s. 238.30 555.30 (6).

SB468,165,7 (2) (a) (intro.) Subject to pars. (c) and (e), the corporation department may designate an area as an airport development zone if the corporation department determines all of the following:

SB468,165,10 4. That the airport development project is not likely to occur or continue without the corporation department designation of the area as an airport development zone.

SB468,165,12 (b) (intro.) In making a determination under par. (a), the corporation department shall consider all of the following:

SB468,165,13 8. Any other factors that the corporation department considers relevant.

SB468,165,18 (c) 1. The corporation department may not designate as an airport development zone, or as any part of an airport development zone, an area that is located within the boundaries of an area that is designated as a development zone under s. 238.31 555.31, as a development opportunity zone under s. 238.395 555.395, or as an enterprise development zone under s. 238.397 555.397.

SB468,165,25 2. The corporation department shall give the department of transportation the opportunity to review and comment on any proposed designation under this subsection and the department of transportation may deny any such designation if the department of transportation determines that the designation would compromise the airport's safety or utility. The department of transportation may also review and comment on any land use or compatibility issues related to any proposed designation under this subsection.

SB468,166,5 (d) Notwithstanding pars. (a) to (c), and except as provided in par. (e), the corporation department shall designate as an airport development zone the area within the boundaries of Adams, Fond du Lac, Green Lake, Juneau, Langlade, Lincoln, Marathon, Marquette, Menominee, Oneida, Portage, Price, Shawano, Taylor, Waupaca, Waushara, Winnebago, Wood, and Vilas counties.

SB468,166,14 (3) (a) When the corporation department designates an area as an airport development zone, the corporation department shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d). The corporation department shall notify each person certified for tax benefits in an airport development zone, the department of revenue, the department of transportation, the Wisconsin Housing and Economic Development Authority, and the governing body of each county, city, village, town, and federally recognized American Indian tribe or band in which territory of the airport development zone is located of the designation of and expiration date of the airport development zone.

SB468,167,4 (b) When the corporation department designates an area as an airport development zone, the corporation department shall establish a limit, not to exceed $3,000,000, for tax benefits applicable to the airport development zone, except that the corporation department shall limit the amount of tax benefits applicable to the airport development zone designated under sub. (2) (d) to $750,000. The total tax benefits applicable to all airport development zones may not exceed $9,000,000, less any amount allocated to technology zones under s. 238.23 555.23 (2) (b) and to agricultural development zones under s. 238.398 555.398 (2) (b), and except that the total amount allocated to all technology zones under s. 238.23 555.23 (2) (b) and to all agricultural development zones under s. 238.398 555.398 (2) (b), may not exceed $6,000,000. The corporation department may not reallocate amounts as provided under this paragraph on or after January 1, 2010, except that the corporation department may, after 48 months from the month of any designation under this section, evaluate the area designated as an airport development zone and reallocate the amount of available tax benefits.

SB468,167,7 (c) Annually, the corporation department shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each airport development zone.

SB468,167,12 (d) 1. Notwithstanding the length of time specified by the corporation department under par. (a), the designation of an area as an airport development zone shall expire 90 days after the day on which the corporation department determines that the forgone tax revenues estimated under par. (c) will equal or exceed the limit established for the airport development zone.

SB468,167,19 2. The corporation department shall immediately notify each person certified for tax benefits in an airport development zone, the department of revenue, the department of transportation, the Wisconsin Housing and Economic Development Authority, and the governing body of each county, city, village, town, and federally recognized American Indian tribe or band in which territory of the airport development zone is located of a change in the expiration date of the airport development zone under this paragraph.

SB468,167,22 (4) (a) (intro.) A person that intends to operate a place of business in an airport development zone may submit to the corporation department an application and a business plan. The business plan shall include all of the following:

SB468,167,24 10. Any other information required by the corporation department or the department of revenue.

SB468,168,7 (am) A person that intends to operate a business in the airport development zone designated under sub. (2) (d) may submit to the corporation department an application and a business plan that includes all of the information required under par. (a). In approving business plans submitted under this paragraph, the corporation department shall give higher priority to airport development projects located or proposed to be located in areas that have a low median household income, as determined by the corporation department.