560.785
560.785
Rules on eligibility for tax benefits. 560.785(1)
(1) For the development zone program under
ss. 560.70 to
560.78 and the enterprise development zone program under
s. 560.797, the department shall promulgate rules that further define a person's eligibility for tax benefits. The rules shall do at least all of the following:
560.785(1)(a)
(a) Limit a person's eligibility to claim tax benefits for retaining full-time jobs to those jobs that likely would not have been retained but for the tax benefits.
560.785(1)(b)
(b) Allow a person to claim up to $6,500 in tax benefits during the time that an area is designated as a development zone or as an enterprise development zone for any of the following:
560.785(1)(b)1.
1. Creating a full-time job that is filled by a member of the target population.
560.785(1)(b)2.
2. Retaining a full-time job that is filled by a member of the target population.
560.785(1)(c)
(c) Allow a person to claim up to $4,000 in tax benefits during the time that an area is designated as a development zone or as an enterprise development zone for any of the following:
560.785(1)(c)1.
1. Creating a full-time job that is filled by an individual who is a Wisconsin resident and who is not a member of the target population.
560.785(1)(c)2.
2. Retaining a full-time job that is filled by an individual who is a Wisconsin resident and who is not a member of the target population.
560.785(1)(d)
(d) Require at least 25% of the tax benefits claimed by a person to be based on creating or retaining full-time jobs.
560.785(1)(e)
(e) Require at least one-third of the tax benefits claimed by a person that are based on creating or retaining full-time jobs to be based on creating or retaining full-time jobs that are filled by members of the target population.
560.785(1)(f)
(f) Specify how long a full-time job that is created or retained by a person must be maintained in order for the person to claim tax benefits for the full-time job.
560.785(1)(g)
(g) Generally provide incentives for the retention of employes filling full-time jobs upon which tax benefits are based.
560.785(2)
(2) The department may by rule specify circumstances under which the department may grant exceptions to any of the following:
560.785 History
History: 1997 a. 27,
41.
560.795
560.795
Development opportunity zones. 560.795(1)
(1)
Designation of development opportunity zones. The following areas are designated as development opportunity zones:
560.795(1)(a)
(a) An area in the city of Beloit, the legal description of which is provided to the department by the local governing body of the city of Beloit.
560.795(1)(b)
(b) An area in the city of West Allis, the legal description of which is provided to the department by the local governing body of the city of West Allis.
560.795(1)(c)
(c) An area in the city of Eau Claire, the legal description of which is provided to the department by the local governing body of the city of Eau Claire.
560.795(2)(a)(a) Except as provided in
par. (d), the designation of each area under
sub. (1) as a development opportunity zone shall be effective for 36 months, with the designation of the areas under
sub. (1) (a) and
(b) beginning on April 23, 1994, and the designation of the area under
sub. (1) (c) beginning on April 28, 1995.
560.795(2)(b)1.1. The limit for tax benefits for the development opportunity zone under
sub. (1) (a) is $7,000,000.
560.795(2)(b)2.
2. The limit for tax benefits for the development opportunity zone under
sub. (1) (b) is $3,000,000.
560.795(2)(b)3.
3. The limit for tax benefits for the development opportunity zone under
sub. (1) (c) is $3,000,000.
560.795(2)(c)
(c) Annually, the department shall estimate the amount of foregone state revenue because of tax benefits claimed by corporations in each development opportunity zone.
560.795(2)(d)1.1. Notwithstanding
par. (a), the designation of an area as a development opportunity zone shall expire 90 days after the day on which the department determines that the foregone tax revenues under
par. (c) will equal or exceed the limit for the development opportunity zone.
560.795(2)(d)2.
2. The 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.
560.795(3)
(3) Application and entitlement to tax benefits. 560.795(3)(a)1.1. Any corporation 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 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.
560.795(3)(a)2.
2. Any corporation 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 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.
560.795(3)(b)
(b) A project plan under
par. (a) shall include all of the following:
560.795(3)(b)1.
1. The name and address of the corporation's business for which tax benefits will be claimed.
560.795(3)(b)2.
2. The appropriate federal tax identification number of the corporation.
560.795(3)(b)3.
3. The names and addresses of other locations outside of the development opportunity zone where the corporation conducts business and a description of the business activities conducted at those locations.
560.795(3)(b)4.
4. The amount that the corporation proposes to invest in a business, or spend on the construction, rehabilitation, repair or remodeling of a building, located within the development opportunity zone.
560.795(3)(b)5.
5. The estimated total investment of the corporation in the development opportunity zone.
560.795(3)(b)6.
6. The number of full-time jobs that will be created, retained or substantially upgraded as a result of the corporation's economic activity in relation to the amount of tax benefits estimated for the corporation.
560.795(3)(b)7.
7. The corporation's plans to make reasonable attempts to hire employes from the targeted population.
560.795(3)(b)8.
8. A description of the commitment of the local governing body of the city in which the development opportunity zone is located to the corporation's project.
560.795(3)(b)9.
9. Other information required by the department or the department of revenue.
560.795(3)(c)
(c) The department shall notify the department of revenue of all corporations entitled to claim tax benefits under this section.
560.795(3)(e)
(e) For purposes of
s. 49.193 (5), notify the department of workforce development of the designation of an area as a development opportunity zone and of the local governing body of the area.
560.795(4)(a)(a) The department shall revoke the entitlement of a corporation to claim tax benefits under this section if the corporation does any of the following:
560.795(4)(a)1.
1. Supplies false or misleading information to obtain the tax benefits.
560.795(4)(a)2.
2. Leaves the development opportunity zone to conduct substantially the same business outside of the development opportunity zone.
560.795(4)(a)3.
3. Ceases operations in the development opportunity zone and does not renew operation of the trade or business or a similar trade or business in the development opportunity zone within 12 months.
560.795(4)(b)
(b) The department shall notify the department of revenue within 30 days after revoking an entitlement under
par. (a).
560.797
560.797
Enterprise development zone program. 560.797(1)(b)
(b) "Project" means economic activity in the state.
560.797(2)
(2) Criteria for designation as an enterprise development zone. 560.797(2)(a)(a) Subject to
pars. (c) and
(d), the department may designate an area as an enterprise development zone for a project if the department determines all of the following:
560.797(2)(a)2.
2. That the project will likely retain or increase employment in the state.
560.797(2)(a)3.
3. That the project is not likely to occur or continue without the department's designation of the area as an enterprise development zone.
560.797(2)(a)4.
4. That the project will likely positively affect an area that meets at least 3 of the following criteria:
560.797(2)(a)4.a.
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 department.
560.797(2)(a)4.b.
b. The percentage of persons residing in the area who are members of households with household income levels at or below 80% of the statewide median household income is higher than the state average.
560.797(2)(a)4.c.
c. The percentage of households in the area receiving unemployment insurance under
ch. 108, relief funded by a relief block grant under
ch. 49 or aid to families with dependent children under
s. 49.19 is higher than the state average.
560.797(2)(a)4.d.
d. In the 36 months immediately preceding the date on which the application under
sub. (3) was submitted to the 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).
560.797(2)(a)4.e.
e. An employer in the vicinity of the area has given public notice under
s. 109.07 (1m) of either a business closing or a mass layoff of at least 25 employes, or 25% of the employes, of a business, whichever is greater, that will result in a number of workers in the area being laid off permanently.
560.797(2)(b)
(b) In making a determination under
par. (a), the department shall consider all of the following:
560.797(2)(b)1.
1. The extent of poverty, unemployment or other factors contributing to general economic hardship in the area.
560.797(2)(b)2.
2. The prospects for new investment and economic development in the area.
560.797(2)(b)3.
3. The amount of investment that is likely to result from the project.
560.797(2)(b)4.
4. The number of full-time jobs that are likely to be created as a result of the project.
560.797(2)(b)5.
5. The number of full-time jobs that are likely to be available to the target population as a result of the project.
560.797(2)(b)6.
6. The competitive effect of designating the area as an enterprise development zone on other businesses in the area.
560.797(2)(b)8.
8. Any other factors that the department considers relevant.
560.797(2)(c)
(c) The 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 zone under
s. 560.71, or as a development opportunity zone under
s. 560.795, the designation of which is in effect.
560.797(2)(d)
(d) The department may not designate more than 50 enterprise development zones unless the department obtains the approval of the joint committee on finance to do so.
