SB 585

This bill makes several adjustments to the business development tax credit.

The changes apply to taxable years beginning after December 31, 2022.

Under current law, the Wisconsin Economic Development Corporation may

certify a person who operates or intends to operate a business in this state to receive

credits against state income and franchise taxes (tax benefits). These credits are

refundable, which means that if the credit exceeds the person's tax liability, the

person will receive the excess as a refund check.

Currently, a person is eligible for tax benefits if the person increases net

employment in this state in the person's business above what it was in the year

preceding the person's certification. Under the bill, a person is eligible for tax

benefits if, in each year for which the person claims tax benefits: 1) the person creates

new jobs or retains existing jobs and the person makes a capital investment in the

person's business; and 2) the person does not decrease net employment in this state

in the person's business below the net employment in this state in the person's

business during the year before the person was certified to receive tax benefits.

Also, under current law, a person may claim tax benefits of up to 3 percent of

the person's personal property investment and up to 5 percent of the person's real

property investment in a capital investment project, if the project involves a total

capital investment of at least $1,000,000 or, if less than $1,000,000, the project

involves a capital investment that is equal to at least $10,000 per eligible employee

employed on the project. The bill changes those limits to up to 10 percent of the

person's personal property investment and up to 10 percent of the person's real

property investment.

The bill also provides that a person may claim tax benefits of an amount equal

to up to 15 percent of the person's investment in workforce housing for eligible

employees and up to 15 percent of the person's investment in establishing a child care

program for eligible employees.

The bill provides that WEDC must approve or deny the certification of a person

within 90 days after receiving the person's application for certification.