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.
238.399(6)(g)
(g) The corporation shall adopt rules specifying all of the following:
238.399(6)(g)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:
238.399(6)(g)1.e.
e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.
238.399(6)(g)2.
2. The definition of an original equipment manufacturer with a significant supply chain in the state.
238.399(6)(g)3.
3. The definition of "significant capital expenditure" for purposes of
sub. (5m).
238.399 History
History: 2005 a. 361;
2007 a. 20,
97,
100;
2009 a. 11,
28,
266,
267;
2011 a. 26;
2011 a. 32 s.
3437; Stats. 2011 s. 238.399; s. 13.92 (1) (bm) 2., (2) (i).
238.3995
238.3995
Airport development zones. 238.3995(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.
238.3995(2)
(2) Designation of an airport development zone. 238.3995(2)(a)(a) Subject to
pars. (c) and
(e), the corporation may designate an area as an airport development zone if the corporation determines all of the following:
238.3995(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.
238.3995(2)(a)2.
2. That the airport development project serves a public purpose.
238.3995(2)(a)3.
3. That the airport development project will likely retain or increase employment in the state.
238.3995(2)(a)4.
4. That the airport development project is not likely to occur or continue without the corporation designation of the area as an airport development zone.
238.3995(2)(a)5.
5. That the airport development project will likely positively affect the area.
238.3995(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.
238.3995(2)(b)
(b) In making a determination under
par. (a), the corporation shall consider all of the following:
238.3995(2)(b)1.
1. The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.
238.3995(2)(b)2.
2. The prospects for new investment and economic development in the area.
238.3995(2)(b)3.
3. The amount of investment that is likely to result from the airport development project.
238.3995(2)(b)4.
4. The number of full-time jobs that are likely to be created as a result of the airport development project.
238.3995(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.
238.3995(2)(b)6.
6. The competitive effect of designating the area as an airport development zone on other businesses in the area.
238.3995(2)(c)1.1. The corporation 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, as a development opportunity zone under
s. 238.395, or as an enterprise development zone under
s. 238.397.
238.3995(2)(c)2.
2. The corporation 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.
238.3995(2)(c)3.
3. A proposed designation under this subsection shall comply with all relevant local ordinances.
238.3995(2)(d)
(d) Notwithstanding
pars. (a) to
(c), and except as provided in
par. (e), the corporation 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.
238.3995(2)(e)
(e) No area may be designated as an airport development zone under this subsection on or after March 6, 2009.
238.3995(3)
(3) Duration of designation; limits on tax benefits. 238.3995(3)(a)(a) When the corporation designates an area as an airport development zone, the corporation shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to
par. (d). The corporation 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.
238.3995(3)(b)
(b) When the corporation designates an area as an airport development zone, the corporation shall establish a limit, not to exceed $3,000,000, for tax benefits applicable to the airport development zone, except that the corporation 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 (2) (b) and to agricultural development zones under
s. 238.398 (2) (b), and except that the total amount allocated to all technology zones under
s. 238.23 (2) (b) and to all agricultural development zones under
s. 238.398 (2) (b), may not exceed $6,000,000. The corporation may not reallocate amounts as provided under this paragraph on or after January 1, 2010, except that the corporation 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.
238.3995(3)(c)
(c) Annually, the corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each airport development zone.
238.3995(3)(d)1.1. Notwithstanding the length of time specified by the corporation under
par. (a), the designation of an area as an airport development zone shall expire 90 days after the day on which the corporation determines that the forgone tax revenues estimated under
par. (c) will equal or exceed the limit established for the airport development zone.
238.3995(3)(d)2.
2. The corporation 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.
238.3995(4)(a)(a) A person that intends to operate a place of business in an airport development zone may submit to the corporation an application and a business plan. The business plan shall include all of the following:
238.3995(4)(a)1.
1. The name and address of the person's business for which tax benefits will be claimed.
238.3995(4)(a)2.
2. The appropriate Wisconsin tax identification number of the person.
238.3995(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.
238.3995(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.
238.3995(4)(a)5.
5. The estimated total investment of the person in the airport development zone.
238.3995(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.
238.3995(4)(a)7.
7. The person's plans to make reasonable attempts to hire employees from the target population.
238.3995(4)(a)8.
8. The estimated number of full-time jobs that will be filled by members of the target population.
238.3995(4)(a)10.
10. Any other information required by the corporation or the department of revenue.
