Chapter 238

238.308(1) (1) Definitions. In this section:

238.308(1)(a) (a) “Eligible employee” means a person employed in a full-time job by a person certified under sub. (2).

238.308(1)(b) (b) For taxable years beginning after December 31, 2023, “full-time job” means a nonseasonal job for which the annual pay is more than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage and for which the person is offered retirement, health, and other benefits.

238.308(2) (2) Certification.

238.308(2)(a) (a) The corporation may certify a person to receive tax benefits under this section if all of the following apply:

238.308(2)(a)1. 1. The person is operating or intends to operate a business in this state.

238.308(2)(a)2. 2. The person applies under this section and enters into a contract with the corporation.

238.308(2)(b) (b) The certification of a person under par. (a) may remain in effect for no more than 10 cumulative years.

238.308(2)(c) (c) The corporation shall approve or deny the certification of a person under par. (a) within 90 days after receiving a person’s application for certification.

238.308(3) (3) Eligibility for tax benefits.

238.308(3)(a) (a) For taxable years beginning before January 1, 2024, a person is eligible to receive tax benefits if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person’s business above the net employment in this state in the person’s business during the year before the person was certified under sub. (2), as determined by the corporation under its policies and procedures.

238.308(3)(b) (b) For taxable years beginning after December 31, 2023, a person is eligible to receive tax benefits if, in each year for which the person claims tax benefits under this section, all of the following conditions are met:

238.308(3)(b)1. 1. The person makes a capital investment in the person’s business, and the person either creates new full-time jobs or retains existing full-time jobs, as determined by the corporation under its policies and procedures.

238.308(3)(b)2. 2. The person does not decrease net employment in this state in the person’s business below the net employment in this state in the person’s business during the year before the person is certified under sub. (2), as determined by the corporation under its policies and procedures.

238.308(4) (4) Awards, limits, expiration.

238.308(4)(a) (a) The corporation may award all of the following tax benefits to a person certified under sub. (2):

238.308(4)(a)1. 1. An amount equal to up to 10 percent of the amount of wages that the person paid to an eligible employee in the taxable year.

238.308(4)(a)2. 2. In addition to any tax benefits awarded for an eligible employee under subd. 1., an amount equal to up to 5 percent of the amount of wages that the person paid to the eligible employee in the taxable year, if the eligible employee is employed in an economically distressed area, as determined by the corporation.

238.308(4)(a)3. 3. An amount equal to up to 50 percent of the person’s training costs incurred to undertake activities to enhance an eligible employee’s general knowledge, employability, and flexibility in the workplace; to develop skills unique to the person’s workplace or equipment; or to develop skills that will increase the quality of the person’s product.

238.308(4)(a)4. 4. An amount equal to up to 3 percent of the person’s personal property investment and up to 5 percent of the person’s real property investment in a capital investment project, if the project involves a total capital investment of at least $250,000 or, if less than $250,000, the project involves a capital investment that is equal to at least $10,000 per eligible employee employed on the project.

238.308(4)(a)5. 5. An amount, as determined by the corporation, equal to a percentage of the amount of wages that the person paid to an eligible employee in the taxable year, if the position in which the eligible employee was employed was created or retained in connection with the person’s location or retention of the person’s corporate headquarters in Wisconsin and the job duties associated with the eligible employee’s position involve the performance of corporate headquarters functions.

238.308(4)(a)6. 6. For taxable years beginning after December 31, 2023, an amount equal to up to 15 percent of the person’s investment in workforce housing, as defined in s. 234.66 (1) (i), and up to 15 percent of the person’s investment in establishing a child care program. Such investments may include capital expenditures made by the person and contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving loan fund program.

238.308(4)(b) (b) The corporation may allocate up to $22,000,000 in tax benefits under this section each year. Any unused allocation may be carried forward, including unused allocations from closed awards.

238.308(4)(c) (c) In any year, the corporation may exceed the annual limit on tax benefits specified in par. (b) by up to $10,000,000 if all of the following apply:

238.308(4)(c)1. 1. The corporation notifies the joint committee on finance in writing of its proposal to exceed the annual limit on tax benefits specified in par. (b).

238.308(4)(c)2. 2. The corporation submits with its notification under subd. 1. evidence that shows the corporation’s proposal is necessary to accomplish the corporation’s statewide economic development objectives.

238.308(4)(c)3. 3. Any of the following is true:

238.308(4)(c)3.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 corporation’s proposal.

238.308(4)(c)3.b. b. The cochairpersons of the joint committee on finance notify the corporation that the committee has approved the corporation’s proposal.

238.308(5) (5) Duties.

238.308(5)(a) (a) The corporation may require a person to repay any tax benefits the person claims for a year in which the person failed to comply with a contract under sub. (2) (a) 2.

238.308(5)(b) (b) The corporation shall verify, under s. 238.03 (2) (e), the information submitted to the corporation by the person for the purpose of claiming tax benefits.

238.308(5)(c) (c) The corporation shall adopt policies and procedures for the implementation and operation of this section.

238.308 History History: 2015 a. 55; 2017 a. 59, 369; 2023 a. 143; 2025 a. 78.

238.309 238.309 Rail infrastructure tax credits.

238.309(1) (1) Definitions. In this section:

238.309(1)(a) (a) “Local government” means a city, village, town, county, or American Indian band or tribe in this state or a unit or instrumentality of a city, village, town, or county.

238.309(1)(b) (b) “Qualified new rail infrastructure expenditures” means capital expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2025, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.

238.309(1)(c) (c) “Qualified short line railroad maintenance expenditures” means all of the following:

238.309(1)(c)1. 1. Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.

238.309(1)(c)2. 2. Gross expenditures for 3rd-party labor related to expenditures described in subd. 1.

238.309(1)(c)3. 3. Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 1.

238.309(1)(d) (d) “Rail infrastructure maintenance credit” means the income and franchise tax credits under ss. 71.07 (8v), 71.28 (8v), and 71.47 (8v).

238.309(1)(e) (e) “Rail infrastructure modernization credit” means the income and franchise tax credits under ss. 71.07 (8t), 71.28 (8t), and 71.47 (8t).

238.309(2) (2) Certification.

238.309(2)(a) (a) The corporation may certify to claim tax benefits under sub. (3) any of the following:

238.309(2)(a)1. 1. A railroad company that has a railroad in this state and that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

238.309(2)(a)2. 2. An owner or lessee of a rail siding, industrial spur, or industry track on or adjacent to a railroad in this state during the taxable year to which the claim applies.

238.309(2)(a)3. 3. A local government.

238.309(2)(b) (b) The corporation may certify to claim tax benefits under sub. (4) a railroad company that has a railroad in this state that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

238.309(2)(c) (c) The corporation shall certify persons under pars. (a) and (b) on a first come, first serve basis.

238.309(2)(d) (d) The corporation shall enter into a contract with each person certified under par. (a) or (b).

238.309(2)(e) (e) The corporation shall, under s. 189.02 (8), consult with the office of the commissioner of railroads or the department of transportation to verify that a person seeking certification under par. (a) or (b) meets the conditions under par. (a) or (b), respectively.

238.309(3) (3) Rail infrastructure modernization credit. A person certified under sub. (2) (a) may claim a rail infrastructure modernization credit in an amount equal to up to 50 percent of the qualified new rail infrastructure expenditures made by the person during the taxable year to which the claim relates. The amount the corporation certifies the person to claim under this subsection may not exceed $2,000,000.

238.309(4) (4) Rail infrastructure maintenance credit. A person certified under sub. (2) (b) may claim a rail infrastructure maintenance credit in an amount equal to up to 50 percent of the qualified short line railroad maintenance expenditures made by the person during the taxable year to which the claim relates. The amount the corporation certifies the person to claim under this subsection may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.

238.309(5) (5) Limitations.

238.309(5)(a) (a) The corporation may allocate up to $10,000,000 in tax benefits under sub. (3) in each calendar year, including, if a person’s taxable year begins or ends on a different date than the calendar year begins or ends, a portion of the person’s tax benefits calculated based on the number of days in the person’s taxable year that fall within the calendar year.

238.309(5)(b) (b) The department of revenue has full power to administer tax credits transferred under s. 71.07 (8t) (e) or (8v) (e), 71.28 (8t) (e) or (8v) (e), or 71.47 (8t) (e) or (8v) (e) and may take any action, conduct any proceeding, and proceed as it is authorized in respect to income and franchise taxes imposed under ch. 71. The income and franchise tax provisions in ch. 71 relating to assessments, refunds, appeals, collection, interest, and penalties apply to tax credits transferred under s. 71.07 (8t) (e) or (8v) (e), 71.28 (8t) (e) or (8v) (e), or 71.47 (8t) (e) or (8v) (e).

238.309(6) (6) Duties.

238.309(6)(a) (a) The corporation shall establish policies and procedures for the administration of this section, including policies and procedures specifying conditions for revoking a certification to claim tax benefits under sub. (2) (a) or (b).

238.309(6)(b) (b) The corporation shall verify, under s. 238.03 (2) (e), the information submitted to the corporation by the person for the purpose of claiming tax benefits under this section.

238.309(6)(c) (c) The corporation shall notify the department of revenue of a certification for tax benefits under this section within 30 days after the certification.

238.309 History History: 2025 a. 242; s. 35.17 correction in (1) (a).

238.396 238.396 Electronics and information technology manufacturing zone.

238.396(1) (1) Definition. In this section, “tax benefits” means the income and franchise tax credits under ss. 71.07 (3wm) and 71.28 (3wm).

238.396(1m) (1m) Designation of zone; criteria.

238.396(1m)(a) (a) The corporation may designate not more than one electronics and information technology manufacturing zone in this state. The zone may not include any area outside this state.

238.396(1m)(b) (b) In determining whether to designate an area under par. (a), the corporation shall consider all of the following:

238.396(1m)(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.

238.396(1m)(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.

238.396(1m)(d) (d) The corporation shall, to the extent possible, give preference to the greatest economic need.

238.396(2) (2) Time limit. A designation under sub. (1m) shall remain in effect for no more than 15 years.

238.396(3) (3) Certification. The corporation may certify for tax benefits a business that begins operations in an electronics and information technology manufacturing zone.

238.396(3m) (3m) Additional tax benefits for significant capital expenditures. If the corporation determines that a business certified under sub. (3) makes a significant capital expenditure in the electronics and information technology manufacturing zone, the corporation may certify the business to receive additional tax benefits in an amount to be determined by the corporation, but not exceeding 15 percent of the business’s 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 a period of 7 years. The corporation shall establish job creation thresholds for a business certified under sub. (3) for each year in the zone. The claiming of capital expenditure tax benefits under ss. 71.07 (3wm) (bm) and 71.28 (3wm) (bm) shall be tied to those job creation thresholds.

238.396(3s) (3s) Limitations on tax benefits.

238.396(3s)(a) (a) The corporation may not issue certifications to claim tax benefits under ss. 71.07 (3wm) (b) and 71.28 (3wm) (b) that total more than $1,500,000,000.

238.396(3s)(b) (b) The corporation may not issue certifications to claim tax benefits under ss. 71.07 (3wm) (bm) and 71.28 (3wm) (bm) that total more than $1,350,000,000.

238.396(3s)(c) (c) The corporation may not certify a business to claim tax benefits under ss. 71.07 (3wm) (b) and 71.28 (3wm) (b) for services performed outside this state.

238.396(4) (4) Other duties.

238.396(4)(a) (a) The corporation shall revoke a certification under sub. (3) if the business does any of the following:

238.396(4)(a)1. 1. Supplies false or misleading information to obtain tax benefits.

238.396(4)(a)2. 2. Leaves the electronics and information technology manufacturing zone to conduct substantially the same business outside the zone.

238.396(4)(a)3. 3. Ceases operations in the electronics and information technology manufacturing zone and does not renew operation of the business or a similar business in the zone within 12 months.

238.396(4)(b) (b) 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 levels or a significant capital investment in property required by an agreement between the business and the corporation.

238.396(4)(c) (c) The corporation shall determine the maximum amount of the tax benefits that a certified business may claim and shall notify the department of revenue of this amount.

238.396(4)(d) (d) The corporation shall verify, under s. 238.03 (2) (e), the information submitted to the corporation by the person for the purpose of claiming tax benefits.

238.396(4)(f) (f) The corporation shall adopt policies and procedures defining “significant capital expenditure” for purposes of sub. (3m).

238.396(4)(fm) (fm) The corporation shall cooperate with the legislative audit bureau for purposes of the audit bureau’s performance of its duties under s. 13.94 (1) (u).

238.396(4)(fs) (fs) The corporation shall contract with a business certified under sub. (3).