SB 477

Under current law, the Wisconsin Economic Development Corporation (WEDC)

administers the jobs tax credit, the economic development tax credit, the

development opportunity zone tax credit, and the enterprise zone tax credit (tax

credit programs). This bill makes various changes to these tax credit programs.

Definition of "full-time job"

Under current law, each of the tax credit programs defines a "full-time job" as

a job in which an individual must work 2,080 hours per year as a condition of his or

her employment. However, for purposes of the enterprise zone tax credit program

and the economic development tax credit program, WEDC is currently authorized to

make an exception to the 2,080 hour requirement for individuals who work at a job

not less than 37.5 hours per week. Under this bill, the definition of "full-time job"

in each of the tax credit programs provides that WEDC may make an exception to

the 2,080 hours per year requirement as long as the employed individual receives

benefits that are acceptable to the corporation.

Jobs Tax Credit

Under current law, WEDC may certify a person to claim the jobs tax credit if

the person operates or intends to operate a business in Wisconsin, will increase its

net employment in Wisconsin, and will pay annual wages to a full-time employee for

whom the person claims tax benefits of at least $20,000 in Tier I counties or

municipalities and at least $30,000 in Tier II counties or municipalities. A person

certified under the program may receive per-employee tax benefits in the amount

of 10 percent of the wages paid to a full-time employee who meets the wage

requirement for the county or municipality A person certified under the program

may also receive tax benefits for providing job training to its employees.

Under this bill, a person certified for the jobs tax credit program may receive

per-employee tax benefits up to 10 percent of the wages paid to a full-time employee

who meets the wage requirements for the county or municipality. This bill also

authorizes WEDC to certify a person to claim the jobs tax credit if the person

maintains increased net employment in the person's business.

Enterprise Zone Tax Credit.

Under current law, WEDC is authorized to designate up to 20 areas in the state

as enterprise zones. Currently, WEDC may certify businesses to claim the enterprise

zone tax credit, including:

1. A business that expands its operations in an enterprise zone and that makes

a capital investment in property located in the enterprise zone if: (a) the value of the

capital investment is equal to at least 10 percent of the business's gross revenues

from business in the state in the preceding tax year; (b) the business enters into an

agreement with WEDC to claim tax benefits only for years during which the business

maintains the capital investment; and (c) the business offers compensation and

benefits for the same type of work to its employees working in the zone that are at