238.145(2)(b)
(b) The value of real and tangible personal property owned or rented and used by the business in this state, as determined by the corporation, is equal to at least 50 percent of the value of all real and tangible personal property owned or rented and used by the business, as determined by the corporation.
238.145(3)
(3) The corporation shall notify the department of revenue of every certification issued under this section and of the date on which a certification is revoked or expires.
238.145(4)
(4) The corporation, in consultation with the department of revenue, may adopt rules for the administration of this section.
238.145(5)
(5) The corporation shall compile a list of businesses certified under this section and the taxable years for which the businesses are certified and shall make the list available to the public at the corporation's Internet Web site.
238.145 History
History: 2011 a. 32.
238.146
238.146
Long-term Wisconsin capital assets deferral; business certification. 238.146(1)
(1) The corporation shall implement a program to certify businesses for purposes of
s. 71.05 (26). A business shall submit an application to the corporation in each calendar year for which the business desires certification.
238.146(2)
(2) The corporation may certify a business if, in the business's taxable year ending immediately before the date of the business's application, all of the following are true:
238.146(2)(a)
(a) The amount of payroll compensation paid by the business in this state, as determined by the corporation, is equal to at least 50 percent of the amount of all payroll compensation paid by the business, as determined by the corporation.
238.146(2)(b)
(b) The value of real and tangible personal property owned or rented and used by the business in this state, as determined by the corporation, is equal to at least 50 percent of the value of all real and tangible personal property owned or rented and used by the business, as determined by the corporation.
238.146(3)
(3) The corporation shall notify the department of revenue of every certification issued under this section and of the date on which a certification is revoked or expires.
238.146(4)
(4) The corporation, in consultation with the department of revenue, may adopt rules for the administration of this section.
238.146(5)
(5) The corporation shall compile a list of businesses certified under this section and the taxable years for which the businesses are certified and shall make the list available to the public at the corporation's Internet Web site.
238.146 History
History: 2011 a. 32.
238.15
238.15
Early stage business investment program. 238.15(1)(1)
Angel investment tax credits. The corporation shall implement a program to certify businesses for purposes of
s. 71.07 (5d). A business desiring certification shall submit an application to the corporation in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation may certify the business and determine the amount that qualifies for purposes of
s. 71.07 (5d). The corporation may certify or recertify a business for purposes of
s. 71.07 (5d) only if the business satisfies all of the following conditions:
238.15(1)(b)
(b) At least 51 percent of the employees employed by the business are employed in this state.
238.15(1)(f)
(f) It has the potential for increasing jobs in this state, increasing capital investment in this state, or both, and any of the following apply:
238.15(1)(f)1.
1. It is engaged in, or has committed to engage in, innovation in any of the following:
238.15(1)(f)1.a.
a. Manufacturing, biotechnology, nanotechnology, communications, agriculture, or clean energy creation or storage technology.
238.15(1)(f)1.b.
b. Processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, any other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary technology.
238.15(1)(f)1.c.
c. Services that are enabled by applying proprietary technology.
238.15(1)(f)2.
2. It is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary technology.
238.15(1)(g)
(g) It is not primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in
s. 196.378 (1) (h).
238.15(1)(h)
(h) At the time it is initially certified under this subsection, it has less than 100 employees.
238.15(1)(j)
(j) At the time it is initially certified under this subsection, it has been in operation in this state for not more than 10 consecutive years.
238.15(1)(k)
(k) For taxable years beginning before January 1, 2008, it has not received more than $1,000,000 in investments that have qualified for tax credits under
s. 71.07 (5d).
238.15(1)(km)
(km) It has not received aggregate private equity investment in cash of more than $10,000,000 before it is initially certified under this subsection.
238.15(1)(m)1.1. It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under
s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount determined under
subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:
238.15(1)(m)1.c.
c. The activities of the business's headquarters, as determined by the corporation.
238.15(1)(m)2.
2. The amount of a penalty payment under
subd. 1. is any of the following:
238.15(1)(m)2.a.
a. If the relocation occurs less than 12 months after the investment, 100 percent of the tax credit that was claimed under
s. 71.07 (5d) as the result of the investment.
238.15(1)(m)2.b.
b. If the relocation occurs 12 months or more after the investment but less than 24 months after the investment, 80 percent of the tax credit that was claimed under
s. 71.07 (5d) as the result of the investment.
238.15(1)(m)2.c.
c. If the relocation occurs occurs 24 months or more after the investment but less than 36 months after the investment, 60 percent of the tax credit that was claimed under
s. 71.07 (5d) as the result of the investment.
238.15(2)
(2) Early stage seed investment tax credits. The corporation shall implement a program to certify investment fund managers for purposes of
ss. 71.07 (5b),
71.28 (5b),
71.47 (5b), and
76.638. An investment fund manager desiring certification shall submit an application to the corporation. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the corporation may certify the manager and determine the amount that qualifies for purposes of
ss. 71.07 (5b),
71.28 (5b),
71.47 (5b), and
76.638. In determining whether to certify an investment fund manager, the corporation shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The corporation may certify only investment fund managers that commit to consider placing investments in businesses certified under
sub. (1).
238.15(3)(a)(a)
List of certified businesses and investment fund managers. The corporation shall maintain a list of businesses certified under
sub. (1) and investment fund managers certified under
sub. (2) and shall permit public access to the lists through the corporation's Internet Web site.
238.15(3)(b)
(b)
Notification of department of revenue. The corporation shall notify the department of revenue of every certification issued under
subs. (1) and
(2) and the date on which any such certification is revoked or expires.
238.15(3)(d)
(d)
Rules. The corporation, in consultation with the department of revenue, shall adopt rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of
s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under
s. 71.07 (5d) that may be claimed for investments in businesses certified under
sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $6,500,000 for calendar year 2010, and $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under
sub. (1). The rules shall also limit the aggregate amount of the tax credits under
ss. 71.07 (5b),
71.28 (5b),
71.47 (5b), and
76.638 that may be claimed for investments paid to fund managers certified under
sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $8,000,000 for calendar year 2010, and $20,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under
sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, a person who receives a credit under
ss. 71.07 (5b) and
(5d),
71.28 (5b),
71.47 (5b), or
76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation, occurs during the 3-year period. The rules shall permit the corporation to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under
s. 238.16 (1) (d), if all of the following apply:
238.15(3)(d)1.
1. The corporation notifies the joint committee on finance in writing of its proposed reallocation.
238.15(3)(d)2.a.
a. The cochairpersons of the joint committee on finance fail to notify the corporation, within 14 working days after the date of the corporation's notification under
subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.
238.15(3)(d)2.b.
b. The cochairpersons of the joint committee on finance notify the corporation that the committee has approved the proposed reallocation.
238.15(3)(e)
(e)
Transfer. A person who is eligible to claim a credit under
s. 71.07 (5b),
71.28 (5b),
71.47 (5b), or
76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under
s. 71.02,
71.23,
71.47, or
subch. III of ch. 76, if the person receives prior authorization from the investment fund manager and the manager then notifies the corporation and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The corporation may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred.
238.16
238.16
Jobs tax credit. 238.16(1)(a)1.1. Except as provided in
subd. 2., "business" means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.
238.16(1)(a)2.
2. "Business" does not include a store or shop in which retail sales is the principal business.
238.16(1)(b)
(b) "Eligible employee" means a person employed in a full-time job by a person certified under
sub. (2).
238.16(1)(c)
(c) "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
238.16(2)
(2) The corporation may certify a person to receive tax benefits under this section if all of the following apply:
238.16(2)(a)
(a) The person is operating or intends to operate a business in this state.
238.16(2)(b)
(b) The person applies under this section and enters into a contract with the corporation.
238.16(3)
(3) Eligibility for tax benefits. A person certified under
sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in the person's business, and one of the following applies:
238.16(3)(a)
(a) In a tier I county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $20,000 in wages from the person in the year for which the credit is claimed.
238.16(3)(am)
(am) The person increases net employment in the person's business.
238.16(3)(b)
(b) In a tier II county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $30,000 in wages from the person in the year for which the credit is claimed.
238.16(3)(c)
(c) In a tier I county or municipality or a tier II county or municipality, the person improves the job-related skills of any eligible employee, trains any eligible employee on the use of job-related new technologies, or provides job-related training to any eligible employee whose employment with the person represents the employee's first full-time job.
238.16(4)
(4) Duration, limits, and expiration. 238.16(4)(a)(a) The certification of a person under
sub. (2) may remain in effect for no more than 10 cumulative years.
238.16(4)(b)1.1. The corporation may award to a person certified under
sub. (2) tax benefits for each eligible employee in an amount equal to 10 percent of the wages paid by the person to that employee or $10,000, whichever is less, if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:
238.16(4)(b)2.
2. The corporation may award to a person certified under
sub. (2) tax benefits in an amount to be determined by the corporation for costs incurred by the person to undertake the training activities described in
sub. (3) (c).
238.16(4)(c)
(c) Subject to a reallocation by the corporation pursuant to rules adopted under
s. 238.15 (3) (d), the corporation may allocate up to $5,000,000 in tax benefits under this section in any calendar year, except that beginning on July 1, 2011, the corporation may allocate up to $10,000,000 in tax benefits under this section in any calendar year.
238.16(5)(a)(a) The corporation shall notify the department of revenue when the corporation certifies a person to receive tax benefits.
238.16(5)(b)
(b) The corporation shall notify the department of revenue within 30 days of revoking a certification made under
sub. (2).
238.16(5)(c)
(c) The corporation may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under
sub. (2) (b).
238.16(5)(d)
(d) The corporation shall determine the maximum amount of the tax credits under
ss. 71.07 (3q),
71.28 (3q), and
71.47 (3q) that a certified business may claim and shall notify the department of revenue of this amount.
238.16(5)(f)
(f) The corporation shall adopt rules for the implementation and operation of this section, including rules relating to the following:
238.16(5)(f)1.
1. The definitions of a tier I county or municipality and a tier II county or municipality. The corporation may consider all of the following information when establishing the definitions required under this subdivision:
238.16(5)(f)1.e.
e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.
238.16(5)(f)2.
2. A schedule of additional tax benefits for which a person who is certified under
sub. (2) and who incurs costs related to job training under
sub. (3) (c) may be eligible.
