AB 178

This bill provides an income and franchise tax exemption to a corporation that

establishes its headquarters in this state if the Wisconsin Economic Development

Corporation Board determines that the corporation would not sell products that

directly compete with products sold by any other business that has its headquarters

in this state. The bill also provides an individual income tax credit equal to 7.65

percent of the individual's income derived from sales of products by a partnership,

limited liability company, or tax-option corporation that establishes its

headquarters in this state if the products sold by the entity do not directly compete

with products sold by any other business that has its headquarters in this state.

Taxpayers may claim the exemption or credit for 20 taxable years. During that time,

the Department of Revenue (DOR) will annually determine the amount of any

additional income tax revenue collected from individuals employed by the business

and use that revenue to decrease individual income tax rates. With regard to a

business that claims the exemption, after the business stops claiming the exemption,

DOR will determine the amount of any additional corporate tax revenue collected

from the business and use that revenue to decrease corporate tax rates.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.