WI
Wisconsin Senate Bill SB585

Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB585 Compare Versions

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33 2023 - 2024 LEGISLATURE
44 2023 SENATE BILL 585
55 October 30, 2023 - Introduced by Senators FEYEN and BALLWEG, cosponsored by
66 Representatives ARMSTRONG, MACCO, BEHNKE, DONOVAN, HURD, MAXEY,
77 MURSAU, O'CONNOR, VANDERMEER, ZIMMERMAN and DOYLE. Referred to
88 Committee on Universities and Revenue.
99 AN ACT to renumber and amend 238.308 (3); to amend 71.07 (3y) (b) 4., 71.28
1010 (3y) (b) 4., 71.47 (3y) (b) 4., 238.308 (4) (a) 4. and 238.308 (5) (a); and to create
1111 71.07 (3y) (b) 4m., 71.07 (3y) (b) 6., 71.28 (3y) (b) 4m., 71.28 (3y) (b) 6., 71.47 (3y)
1212 (b) 4m., 71.47 (3y) (b) 6., 238.308 (2) (c), 238.308 (3) (b), 238.308 (4) (a) 4m. and
1313 238.308 (4) (a) 6. of the statutes; relating to: various changes to the business
1414 development tax credit.
1515 Analysis by the Legislative Reference Bureau
1616 This bill makes several adjustments to the business development tax credit.
1717 The changes apply to taxable years beginning after December 31, 2022.
1818 Under current law, the Wisconsin Economic Development Corporation may
1919 certify a person who operates or intends to operate a business in this state to receive
2020 credits against state income and franchise taxes (tax benefits). These credits are
2121 refundable, which means that if the credit exceeds the person's tax liability, the
2222 person will receive the excess as a refund check.
2323 Currently, a person is eligible for tax benefits if the person increases net
2424 employment in this state in the person's business above what it was in the year
2525 preceding the person's certification. Under the bill, a person is eligible for tax
2626 benefits if, in each year for which the person claims tax benefits: 1) the person creates
2727 new jobs or retains existing jobs and the person makes a capital investment in the
2828 person's business; and 2) the person does not decrease net employment in this state
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3737 in the person's business below the net employment in this state in the person's
3838 business during the year before the person was certified to receive tax benefits.
3939 Also, under current law, a person may claim tax benefits of up to 3 percent of
4040 the person's personal property investment and up to 5 percent of the person's real
4141 property investment in a capital investment project, if the project involves a total
4242 capital investment of at least $1,000,000 or, if less than $1,000,000, the project
4343 involves a capital investment that is equal to at least $10,000 per eligible employee
4444 employed on the project. The bill changes those limits to up to 10 percent of the
4545 person's personal property investment and up to 10 percent of the person's real
4646 property investment.
4747 The bill also provides that a person may claim tax benefits of an amount equal
4848 to up to 15 percent of the person's investment in workforce housing for eligible
4949 employees and up to 15 percent of the person's investment in establishing a child care
5050 program for eligible employees.
5151 The bill provides that WEDC must approve or deny the certification of a person
5252 within 90 days after receiving the person's application for certification.
5353 For further information see the state fiscal estimate, which will be printed as
5454 an appendix to this bill.
5555 The people of the state of Wisconsin, represented in senate and assembly, do
5656 enact as follows:
5757 SECTION 1. 71.07 (3y) (b) 4. of the statutes is amended to read:
5858 71.07 (3y) (b) 4. The For taxable years beginning before January 1, 2023, the
5959 amount of the personal property investment, not to exceed 3 percent of such
6060 investment, and the amount of the real property investment, not to exceed 5 percent
6161 of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4.,
6262 as determined by the Wisconsin Economic Development Corporation.
6363 SECTION 2. 71.07 (3y) (b) 4m. of the statutes is created to read:
6464 71.07 (3y) (b) 4m. For taxable years beginning after December 31, 2022, the
6565 amount of the personal property investment, not to exceed 10 percent of such
6666 investment, and the amount of real property investment, not to exceed 10 percent of
6767 such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4m.,
6868 as determined by the Wisconsin Economic Development Corporation.
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8383 SECTION 3
8484 SENATE BILL 585
8585 SECTION 3. 71.07 (3y) (b) 6. of the statutes is created to read:
8686 71.07 (3y) (b) 6. For taxable years beginning after December 31, 2022, the
8787 amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
8888 eligible employees, not to exceed 15 percent of such investment, and the amount of
8989 the investment in establishing an employee child care program for eligible
9090 employees, not to exceed 15 percent of such investment, as determined by the
9191 Wisconsin Economic Development Corporation.
9292 SECTION 4. 71.28 (3y) (b) 4. of the statutes is amended to read:
9393 71.28 (3y) (b) 4. The For taxable years beginning before January 1, 2023, the
9494 amount of the personal property investment, not to exceed 3 percent of such
9595 investment, and the amount of the real property investment, not to exceed 5 percent
9696 of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4.,
9797 as determined by the Wisconsin Economic Development Corporation.
9898 SECTION 5. 71.28 (3y) (b) 4m. of the statutes is created to read:
9999 71.28 (3y) (b) 4m. For taxable years beginning after December 31, 2022, the
100100 amount of the personal property investment, not to exceed 10 percent of such
101101 investment, and the amount of the real property investment, not to exceed 10 percent
102102 of such investment, in a capital investment project that satisfies s. 238.308 (4) (a)
103103 4m., as determined by the Wisconsin Economic Development Corporation.
104104 SECTION 6. 71.28 (3y) (b) 6. of the statutes is created to read:
105105 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2022, the
106106 amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
107107 eligible employees, not to exceed 15 percent of such investment, and the amount of
108108 the investment made in establishing an employee child care program for eligible
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134134 SECTION 6 SENATE BILL 585
135135 employees, not to exceed 15 percent of such investment, as determined by the
136136 Wisconsin Economic Development Corporation.
137137 SECTION 7. 71.47 (3y) (b) 4. of the statutes is amended to read:
138138 71.47 (3y) (b) 4. The For taxable years beginning before January 1, 2023, the
139139 amount of the personal property investment, not to exceed 3 percent of such
140140 investment, and the amount of the real property investment, not to exceed 5 percent
141141 of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4.,
142142 as determined by the Wisconsin Economic Development Corporation.
143143 SECTION 8. 71.47 (3y) (b) 4m. of the statutes is created to read:
144144 71.47 (3y) (b) 4m. For taxable years beginning after December 31, 2022, the
145145 amount of the personal property investment, not to exceed 10 percent of such
146146 investment, and the amount of the real property investment, not to exceed 10 percent
147147 of such investment, in a capital investment project that satisfies s. 238.308 (4) (a)
148148 4m., as determined by the Wisconsin Economic Development Corporation.
149149 SECTION 9. 71.47 (3y) (b) 6. of the statutes is created to read:
150150 71.47 (3y) (b) 6. For taxable years beginning after December 31, 2022, the
151151 amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
152152 eligible employees, not to exceed 15 percent of such investment, and the amount of
153153 the investment made in establishing an employee child care program for eligible
154154 employees, not to exceed 15 percent of such investment, as determined by the
155155 Wisconsin Economic Development Corporation.
156156 SECTION 10. 238.308 (2) (c) of the statutes is created to read:
157157 238.308 (2) (c) The corporation shall approve or deny the certification of a
158158 person under par. (a) within 90 days after receiving a person's application for
159159 certification.
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187187 SECTION 11
188188 SENATE BILL 585
189189 SECTION 11. 238.308 (3) of the statutes is renumbered 238.308 (3) (a) and
190190 amended to read:
191191 238.308 (3) (a) A For taxable years beginning before January 1, 2023, a person
192192 is eligible to receive tax benefits if, in each year for which the person claims tax
193193 benefits under this section, the person increases net employment in this state in the
194194 person's business above the net employment in this state in the person's business
195195 during the year before the person was certified under sub. (2), as determined by the
196196 corporation under its policies and procedures.
197197 SECTION 12. 238.308 (3) (b) of the statutes is created to read:
198198 238.308 (3) (b) For taxable years beginning after December 31, 2022, a person
199199 is eligible to receive tax benefits if, in each year for which the person claims tax
200200 benefits under this section, all of the following conditions are met:
201201 1. The person creates new jobs or retains existing jobs and the person makes
202202 a capital investment in this state in the person's business, as determined by the
203203 corporation under its policies and procedures.
204204 2. The person does not decrease net employment in this state in the person's
205205 business below the net employment in this state in the person's business during the
206206 year before the person is certified under sub. (2), as determined by the corporation
207207 under its policies and procedures.
208208 SECTION 13. 238.308 (4) (a) 4. of the statutes is amended to read:
209209 238.308 (4) (a) 4. An For taxable years beginning before January 1, 2023, an
210210 amount equal to up to 3 percent of the person's personal property investment and up
211211 to 5 percent of the person's real property investment in a capital investment project,
212212 if the project involves a total capital investment of at least $1,000,000 or, if less than
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238238 SECTION 13 SENATE BILL 585
239239 $1,000,000, the project involves a capital investment that is equal to at least $10,000
240240 per eligible employee employed on the project.
241241 SECTION 14. 238.308 (4) (a) 4m. of the statutes is created to read:
242242 238.308 (4) (a) 4m. For taxable years beginning after December 31, 2022, an
243243 amount equal to up to 10 percent of the person's personal property investment and
244244 up to 10 percent of the person's real property investment in a capital investment
245245 project, if the project involves a total capital investment of at least $1,000,000 or, if
246246 less than $1,000,000, the project involves a capital investment that is equal to at
247247 least $10,000 per eligible employee employed on the project.
248248 SECTION 15. 238.308 (4) (a) 6. of the statutes is created to read:
249249 238.308 (4) (a) 6. For taxable years beginning after December 31, 2022, an
250250 amount equal to up to 15 percent of the person's investment in workforce housing,
251251 as defined in s. 234.66 (1) (i), for eligible employees and up to 15 percent of the
252252 person's investment in establishing an employee child care program for eligible
253253 employees.
254254 SECTION 16. 238.308 (5) (a) of the statutes is amended to read:
255255 238.308 (5) (a) The corporation may require a person to repay any tax benefits
256256 the person claims for a year in which the person failed to employ an eligible employee
257257 required by comply with an agreement under sub. (2) (b).
258258 (END)
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