LRB-2905/1
MPG&FFK:eev:ph
2013 - 2014 LEGISLATURE
September 10, 2013 - Introduced by Senators Lasee and
Hansen, cosponsored by
Representatives Weininger, Born, Jacque, Kahl, Kleefisch, Klenke, Knodl,
Genrich, Mursau, Nygren and A. Ott. Referred to Committee on Economic
Development and Local Government.
SB293,1,4
1An Act to amend 238.30 (7) (b) 2., 238.395 (3) (a) 4., 238.395 (3) (b) (intro.) and
2238.395 (3) (b) 8.; and
to create 109.07 (1m) (bm) and 238.395 (6) of the
3statutes;
relating to: development opportunity zones for areas experiencing
4mass layoffs or business closings.
Analysis by the Legislative Reference Bureau
Current law designates certain areas in the state, usually confined to a city, as
development opportunity zones. Taxpayers that conduct business or intend to
conduct business in a development opportunity zone may receive certain tax credits
after submitting a qualifying project plan to the Wisconsin Economic Development
Corporation (WEDC).
This bill authorizes WEDC to designate as a development opportunity zone an
area in a county in this state that experiences a mass layoff or business closing.
Under the bill, the mass layoff or business closing must affect at least 25 percent of
the employer's workforce or 100 employees, whichever is greater, at an employment
site or within a county, not including new or low-hour employees. The bill also
authorizes WEDC to reallocate unallocated tax credits from the existing
development opportunity zones in the cities of Janesville, Kenosha, and Beloit for
use in a development opportunity zone that WEDC designates in connection with a
mass layoff or business closing.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB293,1
1Section
1. 109.07 (1m) (bm) of the statutes is created to read:
SB293,2,32
109.07
(1m) (bm) The department shall promptly provide a copy of the notice
3required under par. (a) to the Wisconsin Economic Development Corporation.
SB293,2
4Section
2. 238.30 (7) (b) 2. of the statutes is amended to read:
SB293,2,85
238.30
(7) (b) 2. With respect to the development opportunity zones under s.
6238.395 (1) (g), (h), and (i)
and (6), "tax benefits" means the development zone credits
7under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636 and the development zones
8capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).
SB293,3
9Section
3. 238.395 (3) (a) 4. of the statutes is amended to read:
SB293,2,1710
238.395
(3) (a) 4. Any person that is conducting or that intends to conduct
11economic activity in a development opportunity zone under sub. (1) (e), (f), (g), (h),
12or (i) and that, in conjunction with the local governing body of the city in which the
13development opportunity zone is located, submits a project plan as described in par.
14(b) to the corporation
, and any person to whom the corporation reallocates tax
15benefits under sub. (6) (c) 1. for economic activity conducted in a development
16opportunity zone designated under sub. (6) (b), shall be entitled to claim tax benefits
17while the area is designated as a development opportunity zone.
SB293,4
18Section
4. 238.395 (3) (b) (intro.) of the statutes is amended to read:
SB293,2,2019
238.395
(3) (b) (intro.) A project plan under par. (a)
, or under sub. (6) (c) 2., shall
20include all of the following:
SB293,5
21Section
5. 238.395 (3) (b) 8. of the statutes is amended to read:
SB293,3,4
1238.395
(3) (b) 8. A description of the commitment of the local governing body
2of the city in which the development opportunity zone is located
, or the county board
3of the county in which a development opportunity zone is located under sub. (6), to
4the person's project.
SB293,6
5Section
6. 238.395 (6) of the statutes is created to read:
SB293,3,76
238.395
(6) Development opportunity zone in a county experiencing a mass
7layoff or business closing. (a) In this subsection:
SB293,3,128
1. "Business closing" means a permanent or temporary shutdown of an
9employment site or of one or more facilities or operating units at an employment site
10or within a single county that affects at least 25 percent of the employer's workforce
11or 100 employees, whichever is greater, not including new or low-hour employees as
12defined in s. 109.07 (1) (h).
SB293,3,1713
2. "Mass layoff" means a reduction in an employer's workforce that is not the
14result of a business closing and that affects at least 25 percent of the employer's
15workforce or 100 employees, whichever is greater, at an employment site or within
16a single county, not including new or low-hour employees, as defined in s. 109.07 (1)
17(h).
SB293,3,2118
(b) The corporation may designate as a development opportunity zone under
19this section an area, the legal description of which is provided to the corporation by
20the county board of the affected county, in a county in which a mass layoff or business
21closing occurs.
SB293,4,222
(c) 1. The corporation may reallocate any tax benefits not allocated under sub.
23(3) (a) 4. for economic activity in a development opportunity zone under sub. (1) (g),
24(h), and (i) to a person that qualifies for tax benefits under subd. 2. If the corporation
25reallocates tax benefits to a person under this subdivision, that person shall be
1entitled to claim tax benefits under sub. (3) (a) 4. while the area is designated as a
2development opportunity zone.
SB293,4,73
2. A person qualifies for a reallocation of tax benefits under subd. 1. if the
4person is conducting or intends to conduct economic activity in a development
5opportunity zone designated by the corporation under par. (b) and, in conjunction
6with the county board of the county in which the development opportunity zone is
7located, submits a project plan as described in sub. (3) (b) to the corporation.
SB293,4,118
(d) The designation of an area as a development opportunity zone under this
9subsection may not extend beyond the period of the designation of a development
10opportunity zone under sub. (1) (g), (h), or (i), whichever is later, including any
11extension under sub. (2) (e).
