SB 77

Consolidation of economic development zone programs

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 then 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. Job creation 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, as defined by

Commerce by rule, by the person in new equipment, machinery, real property, or

depreciable personal property.

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

of employees, as defined by Commerce by rule, 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 by the person, the amount of the

capital investment made by the person, the amount of training or reeducation

provided to the employees of a person, or the number of jobs retained by the person

having its 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 target group. Commerce is required by the bill to

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

The bill defines "member of a target group" as a person who resides in an area