SB 449

Under current law, the Wisconsin Economic Development Corporation

(corporation) may certify a person to claim tax credits against the person's income

or franchise tax liability or against the person's liability for fees imposed on insurers,

if the corporation determines that the person is conducting or will conduct certain

eligible business activities that will result in economic development in Wisconsin

(economic development tax credits). A person may qualify for additional economic

development tax credits if the eligible activity conducted by the person will benefit

a particular group or economically distressed area that the state has targeted for

economic development.

This bill creates a program under which the corporation may approve the

transfer of economic development tax credits to another Wisconsin taxpayer other

than the person to whom the corporation initially awards the tax credits. Under the

bill, the corporation may approve the transfer of economic development tax credits

if the person to whom the tax credits are initially awarded meets at least one of the

following conditions in addition to being authorized by the corporation to claim the

tax credits:

1. The person is headquartered in, and employs at least 51 percent of its

employees in, Wisconsin.

2. The person intends to relocate its headquarters to, and employ at least 51

percent of its employees in, Wisconsin.

3. The person intends to expand its operations in Wisconsin, and that

expansion will increase the number of full-time employees employed by the person

in Wisconsin by a number that equals at least 10 percent of the person's full-time

employees.

4. The person intends to expand its operations in Wisconsin, and the person will

make a significant capital investment in property in Wisconsin as a result of that

expansion.

If the corporation approves a person to transfer economic development tax

credits, that person must transfer those tax credits to another person previously

identified to the corporation if the tax credits are transferred in exchange for some

valuable consideration, other than money, in connection with the eligible business

activity for which the tax credits were awarded. The person to whom the tax credits

are transferred may carry forward any unused amount of those tax credits for up to

15 years until fully claimed.

Under the bill, if the corporation revokes a person's certification for economic

development tax credits and that person has already transferred the tax credits, that

person is liable for the full amount of the tax credits, and the person to whom the

credits were transferred may not claim any unused credits.

Under the bill, the corporation may authorize the transfer of up to $15,000,000

in economic development tax credits over three years. However, if after reaching that