Bills · 2009-2010 Regular Session

SB 62

Became law Official bill text Atom feed

state finances and appropriations and making diverse other changes in the statutes.

Introduced, completed
Passes Senate, completed
Passes Assembly, completed
Governor signs, completed
Law, completed

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

Commerce and Economic Development

Economic Development

Under current law, the Department of Commerce (Commerce) may designate

a portion of the state as a development zone, a development opportunity zone, an

enterprise development zone, an agricultural development zone, an enterprise zone,

an airport development zone, or a technology zone. Commerce may also certify

persons who agree to undertake certain eligible activities in one of the designated

zones. Eligible activities include job creation, environmental remediation, and

capital investment. Persons who obtain certification are eligible for tax benefits.

This bill consolidates the development zones, enterprise development zones,

agricultural development zones, technology zones, and airport development zones

(five development zone programs) into a program that provides tax benefits to

persons who enter into a contract with Commerce to undertake eligible activities

anywhere in the state. Eligible activities under the bill include all of the following:

1. Projects that result in the creation and maintenance of jobs paying wages

and providing benefits at a level approved by Commerce.

2. Projects that involve a significant investment of capital in new equipment,

machinery, real property, or depreciable personal property.

3. Projects that involve significant investments in the training or reeducation

of employees for the purpose of improving the productivity or competitiveness of the

business of the person.

4. Projects that will result in the location or retention of a person's corporate

headquarters in Wisconsin or that will result in the retention of employees if the

person's corporate headquarters are located in Wisconsin.

Commerce may allocate tax benefits under the consolidated program up to the

total amount remaining to be allocated under the five development zone programs

on the effective date of this bill. Tax benefits are allocated under the bill only after

the person has verified to Commerce that the person has met the performance

obligations established under the contract.

The value of tax benefits for which a person is eligible under the new tax credit

program depends on the number of jobs created, the amount of the capital

investment made, the amount of training or reeducation provided to employees, or

the number of jobs retained by having corporate headquarters located in Wisconsin.

Under the bill, Commerce may award additional tax benefits to a person that

conducts eligible activities in an economically distressed area or if the eligible

activities benefit members of a targeted group. The bill requires Commerce to

develop a methodology for designating an area as an economically distressed area.

The bill defines targeted groups to include persons who reside in an area designated

by the federal government as an economic revitalization area, persons who are

eligible for child care assistance, persons who are food stamp recipients, or persons

What it would cost

Fiscal estimates filed by state agencies, as official PDFs

Fiscal Estimate From DOA