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LRBs0194/1
MDE&KP:wlj
2023 - 2024 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 627
December 7, 2023 - Offered by Representative Armstrong.
AB627-ASA1,2,2 1An Act to repeal 71.07 (3w) (bm) 5. and 71.28 (3w) (bm) 5.; to renumber and
2amend
71.07 (3w) (a) 1., 71.07 (3w) (a) 3., 71.28 (3w) (a) 1., 71.28 (3w) (a) 3.,
371.47 (3w) (a) 1., 71.47 (3w) (a) 3., 238.308 (1) and 238.308 (3); to amend 71.07
4(3w) (a) 6., 71.07 (3y) (a) 2., 71.28 (3w) (a) 6., 71.28 (3y) (a) 2., 71.47 (3w) (a) 6.,
571.47 (3y) (a) 2., 238.30 (2m) (a), 238.308 (4) (b), 238.308 (5) (a), 238.399 (5) (f)
6and 238.399 (6) (d); and to create 71.07 (3w) (a) 1. b., 71.07 (3w) (a) 3. b., 71.07
7(3y) (b) 6., 71.07 (3y) (c) 3., 71.28 (3w) (a) 1. b., 71.28 (3w) (a) 3. b., 71.28 (3y) (b)
86., 71.28 (3y) (c) 3., 71.47 (3w) (a) 1. b., 71.47 (3w) (a) 3. b., 71.47 (3y) (b) 6., 71.47
9(3y) (c) 3., 238.308 (1) (b), 238.308 (2) (c), 238.308 (3) (b), 238.308 (4) (a) 6.,
10238.399 (1) (am) (intro.), 238.399 (1) (ar) and 238.399 (1) (as) of the statutes;

1relating to: various changes to the business development tax credit and the
2enterprise zone jobs tax credit.
Analysis by the Legislative Reference Bureau
This bill makes several adjustments to the business development tax credit and
the enterprise zone jobs tax credit. The changes apply to taxable years beginning
after December 31, 2023.
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.
Business development tax credit
Currently, a person is eligible for business development 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 makes a capital investment in the person's business, and the person
either creates new full-time jobs or retains existing full-time jobs; 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.
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.
Enterprise zone jobs tax credit
Under current law, WEDC may designate areas as enterprise zones and certify
businesses to receive tax benefits for engaging in qualifying activities in the zones,
including job creation, job retention, employee training, capital investment, and
supply chain purchases from Wisconsin vendors. The enterprise zone jobs tax credit
provides tax benefits to businesses that are certified by WEDC and increase the level
employment from the level of employment in a base year.
The bill makes the following changes to the enterprise zone jobs tax credit:
1. Changes the definition of “base year” from the tax year beginning during the
calendar year prior to the calendar year in which the enterprise zone was created to
the 12-month period immediately preceding the date on which the claimant is
certified by WEDC.
2. Changes the definition of “full-time job” to mean a nonseasonal job for which
the annual pay is greater than 150 percent of the federal minimum wage.

3. Changes the definition of “zone payroll” to mean the amount of state payroll
that is attributable to wages paid to full-time employees based in an enterprise zone.
4. Removes a provision stating that WEDC may certify for enterprise zone jobs
tax benefits one financial services technology business that, after completing a
competitive corporate relocation process, retains its corporate headquarters in this
state and retains at least 93 percent of its full-time employees in this state.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB627-ASA1,1 1Section 1 . 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1. a.
2and amended to read:
AB627-ASA1,3,63 71.07 (3w) (a) 1. a. “Base For taxable years beginning before January 1, 2024,
4“base
year" means the taxable year beginning during the calendar year prior to the
5calendar year in which the enterprise zone in which the claimant is located takes
6effect.
AB627-ASA1,2 7Section 2 . 71.07 (3w) (a) 1. b. of the statutes is created to read:
AB627-ASA1,3,108 71.07 (3w) (a) 1. b. For taxable years beginning after December 31, 2023, “base
9year” means the 12-month period immediately preceding the date on which the
10claimant is certified under s. 238.399 (5).
AB627-ASA1,3 11Section 3 . 71.07 (3w) (a) 3. of the statutes is renumbered 71.07 (3w) (a) 3. a.
12and amended to read:
AB627-ASA1,3,1513 71.07 (3w) (a) 3. a. “Full-time For taxable years beginning before January 1,
142024, “full-time
employee" means a full-time employee, as defined in s. 238.399 (1)
15(am) or s. 560.799 (1) (am), 2009 stats.
AB627-ASA1,4 16Section 4 . 71.07 (3w) (a) 3. b. of the statutes is created to read:
AB627-ASA1,3,1817 71.07 (3w) (a) 3. b. For taxable years beginning after December 31, 2023,
18“full-time employee” means a full-time employee, as defined in s. 238.399 (1) (ar).
AB627-ASA1,5 19Section 5 . 71.07 (3w) (a) 6. of the statutes is amended to read:
AB627-ASA1,4,4
171.07 (3w) (a) 6. “Zone payroll" means the amount of state payroll that is
2attributable to wages paid to full-time employees for services that are performed
3based in an enterprise zone. “Zone payroll" does not include the amount of wages
4paid to any full-time employees that exceeds $100,000.
AB627-ASA1,6 5Section 6. 71.07 (3w) (bm) 5. of the statutes is repealed.
AB627-ASA1,7 6Section 7 . 71.07 (3y) (a) 2. of the statutes is amended to read:
AB627-ASA1,4,77 71.07 (3y) (a) 2. “Eligible employee" has the meaning given in s. 238.308 (1) (a).
AB627-ASA1,8 8Section 8. 71.07 (3y) (b) 6. of the statutes is created to read:
AB627-ASA1,4,149 71.07 (3y) (b) 6. For taxable years beginning after December 31, 2023, the
10amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
11employees, not to exceed 15 percent of such investment, and the amount of the
12investment in establishing an employee child care program for employees, not to
13exceed 15 percent of such investment, as determined by the Wisconsin Economic
14Development Corporation.
AB627-ASA1,9 15Section 9 . 71.07 (3y) (c) 3. of the statutes is created to read:
AB627-ASA1,4,1816 71.07 (3y) (c) 3. No credit may be allowed under par. (b) 4. for any amount of
17personal property investment or real property investment used to claim a credit
18under par. (b) 6.
AB627-ASA1,10 19Section 10 . 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1. a.
20and amended to read:
AB627-ASA1,4,2421 71.28 (3w) (a) 1. a. “Base For taxable years beginning before January 1, 2024,
22“base
year" means the taxable year beginning during the calendar year prior to the
23calendar year in which the enterprise zone in which the claimant is located takes
24effect.
AB627-ASA1,11 25Section 11 . 71.28 (3w) (a) 1. b. of the statutes is created to read:
AB627-ASA1,5,3
171.28 (3w) (a) 1. b. For taxable years beginning after December 31, 2023, “base
2year” means the 12-month period immediately preceding the date on which the
3claimant is certified under s. 238.399 (5).
AB627-ASA1,12 4Section 12 . 71.28 (3w) (a) 3. of the statutes is renumbered 71.28 (3w) (a) 3. a.
5and amended to read:
AB627-ASA1,5,86 71.28 (3w) (a) 3. a. “Full-time For taxable years beginning before January 1,
72024, “full-time
employee" means a full-time employee, as defined in s. 238.399 (1)
8(am) or s. 560.799 (1) (am), 2009 stats.
AB627-ASA1,13 9Section 13 . 71.28 (3w) (a) 3. b. of the statutes is created to read:
AB627-ASA1,5,1110 71.28 (3w) (a) 3. b. For taxable years beginning after December 31, 2023,
11“full-time employee” means a full-time employee, as defined in s. 238.399 (1) (ar).
AB627-ASA1,14 12Section 14 . 71.28 (3w) (a) 6. of the statutes is amended to read:
AB627-ASA1,5,1613 71.28 (3w) (a) 6. “Zone payroll" means the amount of state payroll that is
14attributable to wages paid to full-time employees for services that are performed
15based in an enterprise zone. “Zone payroll" does not include the amount of wages
16paid to any full-time employees that exceeds $100,000.
AB627-ASA1,15 17Section 15. 71.28 (3w) (bm) 5. of the statutes is repealed.
AB627-ASA1,16 18Section 16 . 71.28 (3y) (a) 2. of the statutes is amended to read:
AB627-ASA1,5,1919 71.28 (3y) (a) 2. “Eligible employee" has the meaning given in s. 238.308 (1) (a).
AB627-ASA1,17 20Section 17. 71.28 (3y) (b) 6. of the statutes is created to read:
AB627-ASA1,6,221 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2023, the
22amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
23employees, not to exceed 15 percent of such investment, and the amount of the
24investment made in establishing an employee child care program for employees, not

1to exceed 15 percent of such investment, as determined by the Wisconsin Economic
2Development Corporation.
AB627-ASA1,18 3Section 18 . 71.28 (3y) (c) 3. of the statutes is created to read:
AB627-ASA1,6,64 71.28 (3y) (c) 3. No credit may be allowed under par. (b) 4. for any amount of
5personal property investment or real property investment used to claim a credit
6under par. (b) 6.
AB627-ASA1,19 7Section 19 . 71.47 (3w) (a) 1. of the statutes is renumbered 71.47 (3w) (a) 1. a.
8and amended to read:
AB627-ASA1,6,129 71.47 (3w) (a) 1. a. “Base For taxable years beginning before January 1, 2024,
10“base
year" means the taxable year beginning during the calendar year prior to the
11calendar year in which the enterprise zone in which the claimant is located takes
12effect.
AB627-ASA1,20 13Section 20 . 71.47 (3w) (a) 1. b. of the statutes is created to read:
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