238.396 Electronics and information technology manufacturing zone.
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/wi/chapter-238/238-396-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
238.396 Electronics and information technology manufacturing zone.
(1)Definition. In this section, “tax benefits” means the income and franchise tax credits under ss. 71.07
(3wm)and 71.28
(3wm).
(1m)Designation of zone; criteria.
(a)The corporation may designate not more than one electronics and information technology manufacturing zone in this state. The zone may not include any area outside this state.
(b)In determining whether to designate an area under par.
(a), the corporation shall consider all of the following:
1. Indicators of the area’s economic need, which may include data regarding household income, average wages, the condition of property, housing values, population decline, job losses, infrastructure and energy support, the rate of business development, and the existing resources available to the area.
2. The effect of designation on other initiatives and programs to promote economic and community development in the area, including job retention, job creation, job training, and creating high-paying jobs.
(d)The corporation shall, to the extent possible, give preference to the greatest economic need.
(2)Time limit. A designation under sub.
(1m)shall remain in effect for no more than 15 years.
(3)Certification. The corporation may certify for tax benefits a business that begins operations in an electronics and information technology manufacturing zone.
(3m)Additional tax benefits for significant capital expenditures. If the corporation determines that a business certified under sub.
(3)makes a significant capital expenditure in the electronics and information technology manufacturing zone, the corporation may certify the business to receive additional tax benefits in an amount to be determined by the corporation, but not exceeding 15 percent of the business’s capital expenditures. The corporation shall, in a manner determined by the corporation, allocate the tax benefits a business is certified to receive under this subsection over a period of 7 years. The corporation shall establish job creation thresholds for a business certified under sub.
(3)for each year in the zone. The claiming of capital expenditure tax benefits under ss. 71.07
(bm)and 71.28
(bm)shall be tied to those job creation thresholds.
(3s)Limitations on tax benefits.
(a)The corporation may not issue certifications to claim tax benefits under ss. 71.07
(b)and 71.28
(b)that total more than $1,500,000,000.
(b)The corporation may not issue certifications to claim tax benefits under ss. 71.07
(bm)and 71.28
(bm)that total more than $1,350,000,000.
(c)The corporation may not certify a business to claim tax benefits under ss. 71.07
(b)and 71.28
(b)for services performed outside this state.
(4)Other duties.
(a)The corporation shall revoke a certification under sub.
(3)if the business does any of the following:
1. Supplies false or misleading information to obtain tax benefits.
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.
(b)The corporation may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment levels or a significant capital investment in property required by an agreement between the business and the corporation.
(c)The corporation shall determine the maximum amount of the tax benefits that a certified business may claim and shall notify the department of revenue of this amount.
(d)The corporation shall verify, under s. 238.03
(e), the information submitted to the corporation by the person for the purpose of claiming tax benefits.
(f)The corporation shall adopt policies and procedures defining “significant capital expenditure” for purposes of sub.
(3m).
(fm)The corporation shall cooperate with the legislative audit bureau for purposes of the audit bureau’s performance of its duties under s. 13.94
(u).