238.397(4)(f)
(f) The tax benefits for which a person is certified as eligible under this subsection are not transferable to another person, business, or location, except to the extent permitted under section
383 of the internal revenue code.
238.397(4)(h)
(h) No person may be certified under this subsection on or after March 6, 2009.
238.397(5)(a)(a) When the corporation designates an area as an enterprise development zone under this section, the corporation shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to
par. (d) and
sub. (6).
238.397(5)(b)
(b) When the corporation designates an area as an enterprise development zone under this section, the corporation shall establish a limit, not to exceed $3,000,000, for tax benefits for the enterprise development zone.
238.397(5)(c)
(c) Annually, the corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each enterprise development zone.
238.397(5)(d)1.1. Notwithstanding the length of time specified by the corporation under
par. (a), the designation of an area as an enterprise development zone shall expire 90 days after the day on which the corporation determines that the forgone tax revenues under
par. (c) will equal or exceed the limit established for the enterprise development zone.
238.397(5)(d)2.
2. The corporation 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.
238.397(6)(a)(a) The corporation 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:
238.397(6)(a)1.
1. Supplies false or misleading information to obtain the tax benefits.
238.397(6)(a)2.
2. Leaves the enterprise development zone to conduct substantially the same business outside of the enterprise development zone.
238.397(6)(a)3.
3. Ceases operations in the enterprise development zone and does not renew operation of the trade or business or a similar trade or business in the enterprise development zone within 12 months.
238.397(6)(b)
(b) The corporation shall notify the department of revenue within 30 days after revoking an entitlement under
par. (a).
238.398
238.398
Agricultural development zone. 238.398(1)
(1) In this section, "rural municipality" means any of the following:
238.398(1)(a)
(a) A city, town, or village that is located in a county with a population density of less than 150 persons per square mile.
238.398(1)(b)
(b) A city, town, or village with a population of 6,000 or less.
238.398(2)(a)(a) Except as provided under
par. (c), the corporation 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 under
sub. (3) is eligible for tax benefits as provided in
sub. (3).
238.398(2)(b)
(b) The designation of an area as an agricultural development zone shall be in effect for 10 years from the time that the corporation 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 may allocate the amount of unallocated airport development zone tax credits, as provided under
s. 238.3995 (3) (b), to agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The corporation 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.
238.398(2)(c)
(c) No area may be designated as an agricultural development zone on or after March 6, 2009.
238.398(3)(a)(a) Except as provided under
par. (c), the corporation 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 shall consider, among other things, the number of jobs that will be created or retained by the business.
238.398(3)(b)
(b) When the corporation certifies an agricultural business under this subsection, the corporation shall establish a limit on the amount of tax benefits that the business may claim. The corporation 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.
238.398(3)(c)
(c) No business may be certified under this subsection on or after March 6, 2009.
238.398(4)(a)(a) The corporation shall notify the department of revenue of all the following:
238.398(4)(a)2.
2. A business's certification and the limit on the amount of tax benefits that the business may claim.
238.398(5)
(5) The corporation shall adopt rules for the operation of this section, including rules related to all the following:
238.398(5)(a)
(a) Criteria for designating an area as an agricultural development zone.
238.398(5)(b)
(b) Criteria for certifying a business for tax benefits.
238.398(5)(c)
(c) Standards for establishing the limit on the amount of tax benefits that a business may claim.
238.398(5)(d)
(d) Reporting requirements for certified businesses.
238.398(5)(e)
(e) The exchange of information between the corporation and the department of revenue.
238.398(5)(f)
(f) Reasons for revoking a business's certification.
238.398(5)(g)
(g) Standards for changing the boundaries of an agricultural development zone.
238.398 History
History: 2001 a. 16,
104;
2005 a. 259;
2007 a. 183;
2009 a. 2;
2011 a. 32 s.
3436; Stats. 2011 s. 238.398.
238.399(1)(am)1.1. Except as provided in
subd. 2., "full-time employee" means an individual who is employed in a regular, nonseasonal job and who, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.
238.399(1)(am)2.
2. The corporation may by rule specify circumstances under which the corporation 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, but under no circumstances may a full-time employee mean an individual who, as a condition of employment, is required to work less than 37.5 hours per week.
238.399(1)(bm)2.
2. Individuals who provide services to a business as independent contractors in this state.
238.399(3)
(3) Designation of enterprise zones; criteria. 238.399(3)(a)(a) The corporation may designate not more than 20 enterprise zones.
238.399(3)(b)
(b) In determining whether to designate an area under
par. (a), the corporation shall consider all of the following:
238.399(3)(b)1.
1. 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, and the existing resources available to the area.
238.399(3)(b)2.
2. The effect of designation on other initiatives and programs to promote economic and community development in the area, including job retention, job creation, job training, and creating high-paying jobs.
238.399(3)(bm)
(bm) The corporation 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.
238.399(3)(c)
(c) The corporation shall, to the extent possible, give preference to the greatest economic need.
238.399(3)(d)
(d) Notwithstanding
pars. (b) and
(c), the department [corporation] 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 department [corporation] may consider indicators of an area's economic need and the effect of designation on other economic development activities.
238.399 Note
NOTE: Par (d) was created as s. 560.799 (3) (d) by
2011 Wis. Act 26 and renumbered to s. 238.399 (3) (d) by the legislative reference bureau under s. 13.92 (1) (bm) 2. The correct term is shown in brackets. Corrective legislation is pending.
238.399(4)
(4) Time limits; reporting. A designation under
sub. (3) may remain in effect for no more than 12 years.
238.399(5)
(5) Certification. The corporation may certify for tax benefits any of the following:
238.399(5)(a)
(a) A business that begins operations in an enterprise zone.
238.399(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 corporation.
238.399(5)(c)
(c) A business that expands operations in an enterprise zone, but only if any of the following apply:
238.399(5)(c)1.
1. The business will increase its personnel by at least 10 percent and all of the following apply:
238.399(5)(c)1.a.
a. The business enters into an agreement with the corporation to claim tax benefits only for years during which the business maintains the increased level of personnel.
238.399(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 corporation.
238.399(5)(c)2.
2. The business makes a capital investment in property located in the enterprise zone and all of the following apply:
238.399(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.
238.399(5)(c)2.b.
b. The business enters into an agreement with the corporation to claim tax benefits only for years during which the business maintains the capital investment.
238.399(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 corporation.
238.399(5)(d)
(d) A business that retains jobs in an enterprise zone, but only if the business makes a significant capital investment in property located in the enterprise zone and, unless the property is located in an enterprise zone designated under
sub. (3) (d), at least one of the following applies:
238.399(5)(d)1.
1. The business is an original equipment manufacturer with a significant supply chain in the state, as determined by the corporation by rule.
238.399(5)(d)2.
2. More than 500 full-time employees are employed by the business in the enterprise zone.
238.399(5)(e)
(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.
238.399(5m)
(5m) Additional tax benefits for significant capital expenditures. If the corporation determines that a business certified under
sub. (5) makes a significant capital expenditure in the enterprise zone, the corporation may certify the business to receive additional tax benefits in an amount to be determined by the corporation, but not exceeding 10 percent of the business' capital expenditures. The corporation shall, in a manner determined by the corporation, 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).
238.399(6)(a)(a) The corporation shall notify the department of revenue when the corporation certifies a business to receive tax benefits.
238.399(6)(b)
(b) The corporation shall revoke a certification under
sub. (5) if the business does any of the following:
238.399(6)(b)1.
1. Supplies false or misleading information to obtain tax benefits.
238.399(6)(b)2.
2. Leaves the enterprise zone to conduct substantially the same business outside of the enterprise zone.
238.399(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.
238.399(6)(c)
(c) The corporation shall notify the department of revenue within 30 days of a revocation under
par. (b).
238.399(6)(d)
(d) The corporation 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).
238.399(6)(e)
(e) The corporation 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.
