SB 859

This bill authorizes the Wisconsin Economic Development Corporation to

certify a certain paper products manufacturer to claim tax credits. The business

certified by WEDC under the bill may claim as income and franchise tax credits a

percentage of the business's eligible payroll for full-time employees, as defined in the

bill, employed at the business's facilities in the city of Neenah and village of Fox

Crossing, if the employment positions exist when the bill becomes law.

The bill further authorizes WEDC to certify the paper products manufacturer

for additional income and franchise tax credits, subject to certain limitations, if the

business makes a significant capital expenditure at a facility specified above. The

bill also creates a sales and use tax exemption for the sale of building materials,

supplies, and equipment used to construct or develop facilities located at a facility

specified above if the capital expenditures for constructing or developing the

facilities may be claimed as income and franchise tax credits by the business certified

under the bill.

If the amount of any income and franchise tax credit under the bill exceeds the

business's tax liability, the business receives a refund equal to the excess amount.

WEDC may seek repayment of tax credits that the business claims for a year

in which the business failed to maintain employment levels or a significant capital

investment in property required by contract between the business and WEDC. Also,

WEDC must revoke the certification to claim tax credits if the business does any of

the following:

1. Supplies false or misleading information to obtain the tax credits.

2. Leaves the state to conduct substantially the same business outside the

state.

3. Ceases operations in the state and does not renew operation of the business

or a similar business in the state within 12 months.

4. Fails to retain at least 93 percent of its full-time employees at the facilities

specified above who were identified as being full-time employees of the business in

the base year, as determined by WEDC.

5. Fails to retain at least 93 percent of its full-time employees employed in this

state but outside the facilities specified above who were identified as being full-time

employees of the business in the base year, as determined by WEDC.

A certification under the bill may remain in effect for no more than 15 years.

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.