AB 651

Under this bill, a portion of withholding taxes collected from certain "qualifying

companies" is used to pay for clean technology grants. Under the bill, a qualifying

company is identified by the company's principal business activity code under the

North American Industry Classification System. The bill directs the Department of

Revenue (DOR) to determine in July 2012 the total amount of withholding taxes due

and payable from qualifying companies for the period beginning on July 1, 2011 and

ending on June 30, 2012. Then, in each fiscal year, beginning with the fiscal year that

begins on July 1, 2012, DOR must credit to the appropriation for clean technology

grants an amount equal to 50 percent of the withholding taxes due and payable from

qualifying companies that exceeds the total amount for the period beginning on July

1, 2011 and ending on June 30, 2012. DOR may not credit any amounts to that

appropriation after December 31, 2022.

Under the bill, the Wisconsin Economic Development Corporation (WEDC) is

required to establish a clean technology grant program under which WEDC uses

taxes collected from "qualifying companies" to provide grants to certified clean

technology companies, research institutions, and organizations affiliated with

research institutions that arrange for the sale or licensure of clean technology

research projects (technology transfer organizations). Under the bill, WEDC may

certify a clean technology company if WEDC determines that the company meets all

of the following conditions:

1. The company is a qualifying company.

2. The company's headquarters and principal business operations are located

in Wisconsin.

3. The company, including any affiliate, employs at least 75 percent of its

employees in this state.

4. The company is in need of capital.

5. The company is developing clean technology or clean technology research

methods, as determined by WEDC, and demonstrates to WEDC that the company

has the potential to generate high levels of successful investment performance and

increase employment in this state.

6. Any other condition established by WEDC.

Before making a clean technology grant to a certified clean technology company,

WEDC must enter into a contract with the company that includes the following

requirements:

1. The company must use the grant for research and development related to

clean technology or clean technology research methods.

2. During the term of the contract, the certified clean technology company may

not relocate its headquarters outside of Wisconsin without the WEDC's approval.

The bill requires WEDC to establish criteria for awarding clean technology

grants to research institutions and technology transfer organizations.