Chapter 238

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).

238.396(4)(g) (g) The corporation shall, to the extent possible, attempt to include terms in any agreement negotiated between the corporation and a business under par. (fs) that encourage the business’s hiring of Wisconsin residents.

238.396(5) (5) No environmental impact statement required. The issuance of any permit or approval for a new manufacturing facility within an electronics and information technology manufacturing zone designated under this section is not a major action for the purposes of s. 1.11 (2) (c).

238.396 History History: 2017 a. 58, 369.

238.399 238.399 Enterprise zone.

238.399(1) (1) Definitions. In this section:

238.399(1)(ab) (ab) “Aviation biofuel” means biofuel used as aviation fuel.

238.399(1)(ae) (ae) “Biofuel” means fuel created by converting organic matter derived from wood, at least 80 percent of which, as measured by aggregate volume over a 5-year period, has been sourced in this state.

238.399(1)(am) (am) For taxable years beginning before January 1, 2024:

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 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 if all of the following apply:

238.399(1)(am)2.a. a. The individual is employed in a job for which the annual pay is more than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage.

238.399(1)(am)2.b. b. The individual is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.

238.399(1)(ar) (ar) For taxable years beginning after December 31, 2023, “full-time employee” means an individual employed in a full-time job.

238.399(1)(as) (as) 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.

238.399(1)(bm) (bm) “Personnel” means all of the following:

238.399(1)(bm)1. 1. A business’ employees in an enterprise zone.

238.399(1)(bm)2. 2. Individuals who provide services to a business as independent contractors in this state.

238.399(1)(c) (c) “Tax benefits” means the income and franchise tax credits under ss. 71.07 (3w), 71.28 (3w), and 71.47 (3w).

238.399(3) (3) Designation of enterprise zones; criteria.

238.399(3)(a) (a) The corporation may designate any number of enterprise zones in this state.

238.399(3)(am) (am) The corporation may not designate a new enterprise zone under par. (a) except as follows:

238.399(3)(am)1. 1. Before the corporation designates a new enterprise zone, the corporation shall notify the joint committee on finance in writing of the corporation’s intention to designate a new enterprise zone. The notice shall describe the new zone and the purposes for which the corporation proposes to designate the new zone.

238.399(3)(am)2. 2. If, within 14 working days after the date of the corporation’s notice under subd. 1., the cochairpersons of the joint committee on finance do not notify the corporation that the committee has scheduled a meeting to review the corporation’s proposal, the corporation may designate the new enterprise zone as proposed in the corporation’s notice. If, within 14 working days after the date of the corporation’s notice under subd. 1., the cochairpersons of the committee notify the corporation that the committee has scheduled a meeting to review the corporation’s proposal, the corporation may designate the new enterprise zone only upon approval of the committee.

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 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 corporation may consider indicators of an area’s economic need and the effect of designation on other economic development activities.

238.399(4) (4) Time limits; reporting.

238.399(4)(a) (a) Except as provided in par. (am), a designation under sub. (3) may remain in effect for no more than 12 years.

238.399(4)(am) (am) A designation under sub. (3) that has a business certified under sub. (5) (g) operating in it may remain in effect for no more than 20 years.

238.399(4)(b) (b) If an enterprise zone designation expires under par. (a), the corporation may designate a new enterprise zone subject to the limits of sub. (3).

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 significant capital investment in property located in the enterprise zone and all of the following apply:

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.