560.798(5)(a)
(a) Criteria for designating an area as an agricultural development zone.
560.798(5)(b)
(b) Criteria for certifying a business for tax benefits.
560.798(5)(c)
(c) Standards for establishing the limit on the amount of tax benefits that a business may claim.
560.798(5)(d)
(d) Reporting requirements for certified businesses.
560.798(5)(e)
(e) The exchange of information between the department of commerce and the department of revenue.
560.798(5)(f)
(f) Reasons for revoking a business's certification.
560.798(5)(g)
(g) Standards for changing the boundaries of an agricultural development zone.
560.798 Cross-reference
Cross Reference: See also ch.
Comm 118, Wis. adm. code.
560.799(1)(bm)2.
2. Individuals who provide services to a business as independent contractors in this state.
560.799(3)
(3) Designation of enterprise zones; criteria. 560.799(3)(a)(a) The department may designate not more than 10 enterprise zones. The department may designate an area as an enterprise zone if the area does not exceed 50 acres.
560.799(3)(b)
(b) In determining whether to designate an area under
par. (a), the department shall consider all of the following: Indicators of the area's economic need, which may include data regarding household income, average wages, the condition of property, housing values, population decline, job losses, infrastructure and energy support, the rate of business development, the existing resources available to the area; the effect of designation on other initiatives and programs to promote economic and community development in the area, including job creation and job training and creating high-paying jobs.
560.799(3)(c)
(c) The department shall, to the extent possible, give preference to the greatest economic need.
560.799(4)
(4) Time limits; reporting. A designation under
sub. (3) may remain in effect for no more than 12 years.
560.799(5)
(5) Certification. The department may certify for tax benefits any of the following:
560.799(5)(a)
(a) A business that begins operations in an enterprise zone.
560.799(5)(b)
(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 department.
560.799(5)(c)
(c) A business that expands operations in an enterprise zone, but only if any of the following apply:
560.799(5)(c)1.
1. The business will increase its personnel by at least 10 percent and all of the following apply:
560.799(5)(c)1.a.
a. The business enters into an agreement with the department to claim tax benefits only for years during which the business maintains the increased level of personnel.
560.799(5)(c)1.b.
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 department.
560.799(5)(c)2.
2. The business makes a capital investment in property located in the enterprise zone and all of the following apply:
560.799(5)(c)2.a.
a. The value of the capital investment is equal to at least 10 percent of the business' gross revenues in the preceding tax year attributable to business activities in this state.
560.799(5)(c)2.b.
b. The business enters into an agreement with the department to claim tax benefits only for years during which the business maintains the capital investment.
560.799(5)(c)2.c.
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 department.
560.799(6)(a)(a) The department of commerce shall notify the department of revenue when the department of commerce certifies a business to receive tax benefits.
560.799(6)(b)
(b) The department shall revoke a certification under
sub. (5) if the business does any of the following:
560.799(6)(b)1.
1. Supplies false or misleading information to obtain tax benefits.
560.799(6)(b)2.
2. Leaves the enterprise zone to conduct substantially the same business outside of the enterprise zone.
560.799(6)(b)3.
3. Ceases operations in the enterprise zone and does not renew operation of the business or a similar business in the enterprise zone within 12 months.
560.799(6)(c)
(c) The department of commerce shall notify the department of revenue within 30 days of a revocation under
par. (b).
560.799(6)(d)
(d) The department may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment or capital investment levels required by an agreement under
sub. (5) (c).
560.799(6)(e)
(e) The 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.
560.799 History
History: 2005 a. 361;
2007 a. 20,
97,
100.
560.7995
560.7995
Airport development zones. 560.7995(1)(a)
(a) "Airport development project" means a business that locates or expands in an area designated as an airport development zone in this state.
560.7995(2)
(2) Designation of an airport development zone. 560.7995(2)(a)(a) Subject to
par. (c), the department may designate an area as an airport development zone if the department determines all of the following:
560.7995(2)(a)1.
1. That an airport development project is desired for the area, as evidenced by a resolution of the governing body of each county, city, village, and town in which territory of the airport development zone will be located.
560.7995(2)(a)2.
2. That the airport development project serves a public purpose.
560.7995(2)(a)3.
3. That the airport development project will likely retain or increase employment in the state.
560.7995(2)(a)4.
4. That the airport development project is not likely to occur or continue without the department's designation of the area as an airport development zone.
560.7995(2)(a)5.
5. That the airport development project will likely positively affect the area.
560.7995(2)(a)6.
6. That an airport is located in the area designated as an airport development zone, that the airport has at least 2 runways at the time of the designation, and that the airport's primary runway is at least 5,000 feet in length and its secondary runway is at least 3,000 feet in length.
560.7995(2)(b)
(b) In making a determination under
par. (a), the department shall consider all of the following:
560.7995(2)(b)1.
1. The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.
560.7995(2)(b)2.
2. The prospects for new investment and economic development in the area.
560.7995(2)(b)3.
3. The amount of investment that is likely to result from the airport development project.
560.7995(2)(b)4.
4. The number of full-time jobs that are likely to be created as a result of the airport development project.
560.7995(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.
560.7995(2)(b)6.
6. The competitive effect of designating the area as an airport development zone on other businesses in the area.
560.7995(2)(c)1.1. The 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. 560.71, as a development opportunity zone under
s. 560.795, or as an enterprise development zone under
s. 560.797.
560.7995(2)(c)2.
2. The 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.
560.7995(2)(c)3.
3. A proposed designation under this subsection shall comply with all relevant local ordinances.
560.7995(2)(d)
(d) Notwithstanding
pars. (a) to
(c), the 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.
560.7995(3)
(3) Duration of designation; limits on tax benefits. 560.7995(3)(a)(a) When the department designates an area as an airport development zone, the department shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to
par. (d). The 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.
560.7995(3)(b)
(b) When the department designates an area as an airport development zone, the department shall establish a limit, not to exceed $3,000,000, for tax benefits applicable to the airport development zone, except that the 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. 560.96 (2) (b) and to agricultural development zones under
s. 560.798 (2) (b), and except that the total amount allocated to all technology zones under
s. 560.96 (2) (b) and to all agricultural development zones under
s. 560.798 (2) (b), may not exceed $6,000,000. The department may not reallocate amounts as provided under this paragraph on or after January 1, 2010, except that the 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.
560.7995(3)(c)
(c) Annually, the department shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each airport development zone.
560.7995(3)(d)1.1. Notwithstanding the length of time specified by the department under
par. (a), the designation of an area as an airport development zone shall expire 90 days after the day on which the department determines that the forgone tax revenues estimated under
par. (c) will equal or exceed the limit established for the airport development zone.
560.7995(3)(d)2.
2. The 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.
560.7995(4)(a)(a) A person that intends to operate a place of business in an airport development zone may submit to the department an application and a business plan. The business plan shall include all of the following:
560.7995(4)(a)1.
1. The name and address of the person's business for which tax benefits will be claimed.
560.7995(4)(a)2.
2. The appropriate Wisconsin tax identification number of the person.
560.7995(4)(a)3.
3. The names and addresses of other locations outside of the airport development zone where the person conducts business and a description of the business activities conducted at those locations.
560.7995(4)(a)4.
4. The amount that the person proposes to invest in the place of business or to spend on the construction, rehabilitation, repair, or remodeling of a building in the airport development zone.
560.7995(4)(a)5.
5. The estimated total investment of the person in the airport development zone.
560.7995(4)(a)6.
6. The estimated number of full-time jobs that will be created, retained, or substantially upgraded as a result of the person's place of business in the airport development zone in relation to the amount of tax benefits estimated for the person.
560.7995(4)(a)7.
7. The person's plans to make reasonable attempts to hire employees from the target population.
560.7995(4)(a)8.
8. The estimated number of full-time jobs that will be filled by members of the target population.
560.7995(4)(a)10.
10. Any other information required by the department or the department of revenue.
560.7995(4)(am)
(am) A person that intends to operate a business in the airport development zone designated under
sub. (2) (d) may submit to the 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 department shall give higher priority to airport development projects located or proposed to be located in a distressed area, as defined in
s. 560.605 (7) (b).
