(b) The department of commerce shall notify the department of revenue within 30 days of revoking a certification made under sub. (2).

(c) The department may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under sub. (2) (b).

(d) The department shall determine the maximum amount of the tax credits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q) that a certified business may claim and shall notify the department of revenue of this amount.

(e) The department shall annually verify the information submitted to the department by the person claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).

(f) The department shall promulgate rules for the implementation and operation of this section, including rules relating to the following:

1. The definitions of a tier I county or municipality and a tier II county or municipality. The department may consider all of the following information when establishing the definitions required under this subdivision:

a. Unemployment rate.

b. Percentage of families with incomes below the poverty line established under 42 USC 9902 (2).

c. Median family income.

d. Median per capita income.

e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.

2. A schedule of additional tax benefits for which a person who is certified under sub. (2) and who incurs costs related to job training under sub. (3) (c) may be eligible.

3. Conditions for the revocation of a certification under par. (b).

4. Conditions for the repayment of tax benefits under par. (c).

560.206 (5) (a) The department shall annually submit to the cochairpersons of the joint committee on finance a report that includes all of the following:

1. The number of entities receiving tax credits under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) in the preceding year.

2. The total amount of production expenditures, as defined in ss. 71.07 (5f) (a) 3., for which tax credits were claimed in the preceding year and the county and city or village in which the production expenditures were made.

3. The number of individuals employed on each of the productions in the preceding year.

(b) The department shall gather the information required to produce the report described in par. (a) using financial tracking forms and permits that are consistent with industry standards.

560.208 Qualified new business ventures. (1) The department shall implement a program to certify qualified new business ventures for purposes of s. 71.05 (24). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. Subject to sub. (2), a business may be certified under this subsection, and may maintain such certification, only if the business is engaged in one of the following:

(a) Developing a new product or business process.

(b) Manufacturing, agriculture, or processing or assembling products and conducting research and development.

(2) The department may not certify a business under sub. (1) if the business is engaged in real estate development, insurance, banking, lending, lobbying, political consultation, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail sales, leisure, hospitality, transportation, or construction.

(3) (a) The department shall maintain a list of businesses certified under sub. (1) and shall permit public access to the lists through the department's Internet Web site.

(b) The department of commerce shall notify the department of revenue of every certification issued under sub. (1) and the date on which a certification under sub. (1) is revoked or expires.

560.255 Grants to Wisconsin Angel Network. Annually, from the appropriation under s. 20.143 (1) (bk), the department shall make a grant to the Wisconsin Angel Network of $60,000. The department shall enter into an agreement with the Wisconsin Angel Network that specifies the uses for the grant proceeds and reporting and auditing requirements. The department shall promulgate rules necessary to administer this section.

560.277 Wisconsin venture fund. (1) Definition. In this section, "eligible institution" means a research institution or nonprofit organization involved in economic development.

(2) Capital connections grants. From the appropriation under s. 20.143 (1) (bk), the department may award a grant to an eligible institution to fund a project that does any of the following:

(a) Expands access for Wisconsin business ventures and entrepreneurs to existing capital networks.

(b) Creates or runs a network to connect Wisconsin business ventures and entrepreneurs with available capital.

(c) Creates an activity, event, or strategy to connect Wisconsin business ventures and entrepreneurs with available capital.

(3) Venture seed grants. (a) From the appropriation under s. 20.143 (1) (bk), the department may award a grant to an eligible institution to match funds raised by the institution for funding a new business or determining proof of concept and feasibility of a new business idea, if the department determines the award of a grant will increase the amount of funding for new businesses or will leverage private investment and facilitate the creation of jobs in this state.

(b) The proceeds of a grant awarded under this subsection shall be used to provide funding as proposed by the institution in the institution's application.

(4) Rule making. The department shall promulgate rules for the administration of this section.

(5) The department shall establish by rule a Wisconsin venture fund advisory council, which shall make recommendations to the department regarding all of the following:

(a) A process by which the department, the department of financial institutions, and other qualified persons may review proposals.

(b) The maximum amount of a grant awarded under sub. (2) or (3).

(c) Requirements that applicants for grants under subs. (2) and (3) secure funding from sources other than the state to match a portion of the amount of a grant awarded under sub. (2) or (3).

(d) Monitoring of projects funded by grants under sub. (2) or (3), including monitoring of job creation.

560.30 Definitions. In this subchapter:

(1) "Board" means the economic policy board created under s. 15.155 (2).

(2) "Business" means a company located in this state, a company that has made a firm commitment to locate a facility in this state, or a group of companies at least 80 percent of which are located in this state.

(3) "Cluster" means a geographic, categorical, horizontal, or vertical concentration of interconnected, interdependent, or synergistic businesses, industries, research centers, or venues for the performance, creation, or display of the arts.

(4) "Community-based organization" means an organization that is involved in economic development and helps businesses that are likely to employ persons.

(5) "Economically distressed area" means an area designated by the department using the methodology established by rule under s. 560.301 (2).

(6) "Eligible activity" means any of the following:

(a) The start-up, expansion, or retention of minority businesses.

(b) The start-up, expansion, or retention of businesses in economically distressed areas.

(c) Innovative proposals to strengthen inner cities.

(d) Innovative proposals to strengthen communities in rural municipalities.

(e) Innovative programs to strengthen clusters.

(f) Innovative proposals to strengthen entrepreneurship.

(7) "Eligible recipient" means any of the following:

(a) A business or small business.

(b) The governing body of a municipality.

(c) A community-based organization.

(d) A cooperative or association incorporated under ch. 185 or organized under ch. 193.

(e) A local development corporation.

(f) A nonprofit organization whose primary purpose is to promote the economic development of or community development in a particular area or region in the state.

(8) "Governing body" means a county board, city council, village board, or town board.

(9) "Local development corporation" means any of the following:

(a) The elected governing body of a federally recognized American Indian tribe or band in this state or any business created by the elected governing body.

(b) A corporation organized under ch. 181 that is a nonprofit corporation, as defined in s. 181.0103 (17), that is at least 51 percent controlled and actively managed by minority group members, and that does all of the following:

1. Operates primarily within specific geographic boundaries.

2. Promotes economic development and employment opportunities for minority group members or minority businesses within the specific geographic area.

3. Demonstrates a commitment to or experience in promoting economic development and employment opportunities for minority group members or minority businesses.

(10) "Minority business" has the meaning given in s. 560.036 (1) (e).

(11) "Minority group member" has the meaning given in s. 560.036 (1) (f).

(12) "Municipality" means a county, city, village, or town.

(13) "Rural municipality" means any of the following:

(a) A municipality that is located in a county with a population density of less than 150 persons per square mile.

(b) A municipality with a population of 6,000 or less.

(14) "Small business" means a business with fewer than 100 employees, including employees of any subsidiary or affiliated organization.

560.301 Rules, policies, and standards for awarding grants and making loans. The department, in consultation with the board, shall promulgate rules that establish procedures, policies, and standards for implementing this subchapter and awarding grants and making loans under this subchapter. The rules shall include all of the following:

(1) A statement of the department's economic development objectives for the program under this subchapter, together with the goals and accountability measures required under s. 560.01 (2) (ae).

(2) The methodology for designating an area as economically distressed. The methodology under this subsection shall require the department to consider the most current data available for the area and for the state on the following indicators:

(a) Unemployment rate.

(b) Percentage of families with incomes below the poverty line established under 42 USC 9902 (2).

(c) Median family income.

(d) Median per capita income.