SB 1

Electronics and information technology manufacturing zone

This bill authorizes the Wisconsin Economic Development Corporation to

create not more than one electronics and information technology manufacturing

zone.

Tax credits

Under the bill, WEDC may certify certain businesses to claim income and

franchise tax credits if a business begins operations in the electronics and

information technology manufacturing zone. WEDC may certify such a business for

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

business makes a significant capital expenditure in the zone. If the amount of the

credit exceeds the taxpayer's tax liability, the taxpayer receives a refund equal to the

excess amount. The total amount of all tax credits WEDC may certify under the bill

is $2,850,000,000. WEDC may seek repayment of tax credits under circumstances

specified in the bill, and WEDC must revoke a certification to claim tax credits if a

certified business does any of the following:

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

2. Leaves the electronics and information technology manufacturing zone to

conduct substantially the same business outside the zone.

3. Ceases operations in the electronics and information technology

manufacturing zone and does not renew operation of the business or a similar

business in the zone within 12 months.

Sales and use tax exemption

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

supplies, and equipment used to construct facilities located in an electronics and

information technology manufacturing zone if the capital expenditures for

constructing the facilities may be claimed as income and franchise tax credits as

certified by WEDC.

Tax incremental financing districts

The bill creates special provisions that apply to certain tax incremental

financing districts (TIDs) if WEDC creates an electronics and information

technology manufacturing zone, and a city or village creates a TID that includes the

zone.

Under the current tax incremental financing program, a city or village may

create a TID in part of its territory to foster development under certain conditions.

Currently, towns and counties also have a limited ability to create a TID under

certain limited circumstances. Before a city or village may create a TID, several

steps and plans are required. These steps and plans include public hearings on the

proposed TID within specified time frames, adoption of a resolution, submission of

documents to the Department of Revenue within specified time frames, and the

preparation and adoption by the local planning commission of a proposed project