2023 - 2024 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 585
December 12, 2023 - Offered by Senator Feyen.
SB585-SSA1,2,2
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:
SB585-SSA1,1
1Section 1
. 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1. a.
2and amended to read:
SB585-SSA1,3,63
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.
SB585-SSA1,2
7Section 2
. 71.07 (3w) (a) 1. b. of the statutes is created to read:
SB585-SSA1,3,108
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).
SB585-SSA1,3
11Section 3
. 71.07 (3w) (a) 3. of the statutes is renumbered 71.07 (3w) (a) 3. a.
12and amended to read:
SB585-SSA1,3,1513
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.
SB585-SSA1,4
16Section 4
. 71.07 (3w) (a) 3. b. of the statutes is created to read:
SB585-SSA1,3,1817
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).
SB585-SSA1,5
19Section 5
. 71.07 (3w) (a) 6. of the statutes is amended to read:
SB585-SSA1,4,4
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.
SB585-SSA1,6
5Section
6. 71.07 (3w) (bm) 5. of the statutes is repealed.
SB585-SSA1,7
6Section 7
. 71.07 (3y) (a) 2. of the statutes is amended to read:
SB585-SSA1,4,77
71.07
(3y) (a) 2. “Eligible employee" has the meaning given in s. 238.308 (1)
(a).
SB585-SSA1,8
8Section
8. 71.07 (3y) (b) 6. of the statutes is created to read:
SB585-SSA1,4,149
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.
SB585-SSA1,9
15Section 9
. 71.07 (3y) (c) 3. of the statutes is created to read:
SB585-SSA1,4,1816
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.
SB585-SSA1,10
19Section 10
. 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1. a.
20and amended to read:
SB585-SSA1,4,2421
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.
SB585-SSA1,11
25Section 11
. 71.28 (3w) (a) 1. b. of the statutes is created to read:
SB585-SSA1,5,3
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).
SB585-SSA1,12
4Section 12
. 71.28 (3w) (a) 3. of the statutes is renumbered 71.28 (3w) (a) 3. a.
5and amended to read:
SB585-SSA1,5,86
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.
SB585-SSA1,13
9Section 13
. 71.28 (3w) (a) 3. b. of the statutes is created to read:
SB585-SSA1,5,1110
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).
SB585-SSA1,14
12Section 14
. 71.28 (3w) (a) 6. of the statutes is amended to read:
SB585-SSA1,5,1613
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.
SB585-SSA1,15
17Section
15. 71.28 (3w) (bm) 5. of the statutes is repealed.
SB585-SSA1,16
18Section 16
. 71.28 (3y) (a) 2. of the statutes is amended to read:
SB585-SSA1,5,1919
71.28
(3y) (a) 2. “Eligible employee" has the meaning given in s. 238.308 (1)
(a).
SB585-SSA1,17
20Section
17. 71.28 (3y) (b) 6. of the statutes is created to read:
SB585-SSA1,6,221
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.
SB585-SSA1,18
3Section 18
. 71.28 (3y) (c) 3. of the statutes is created to read:
SB585-SSA1,6,64
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.
SB585-SSA1,19
7Section 19
. 71.47 (3w) (a) 1. of the statutes is renumbered 71.47 (3w) (a) 1. a.
8and amended to read:
SB585-SSA1,6,129
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.
SB585-SSA1,20
13Section 20
. 71.47 (3w) (a) 1. b. of the statutes is created to read:
SB585-SSA1,6,1614
71.47
(3w) (a) 1. b. For taxable years beginning after December 31, 2023, “base
15year” means the 12-month period immediately preceding the date on which the
16claimant is certified under s. 238.399 (5).
SB585-SSA1,21
17Section 21
. 71.47 (3w) (a) 3. of the statutes is renumbered 71.47 (3w) (a) 3. a.
18and amended to read:
SB585-SSA1,6,2119
71.47
(3w) (a) 3. a.
“Full-time For taxable years beginning before January 1,
202024, “full-time employee" means a full-time employee, as defined in s. 238.399 (1)
21(am) or s. 560.799 (1) (am), 2009 stats.
SB585-SSA1,22
22Section 22
. 71.47 (3w) (a) 3. b. of the statutes is created to read:
SB585-SSA1,6,2423
71.47
(3w) (a) 3. b. For taxable years beginning after December 31, 2023,
24“full-time employee” means a full-time employee, as defined in s. 238.399 (1) (ar).
SB585-SSA1,23
25Section 23
. 71.47 (3w) (a) 6. of the statutes is amended to read:
SB585-SSA1,7,4
171.47
(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.
SB585-SSA1,24
5Section 24
. 71.47 (3y) (a) 2. of the statutes is amended to read:
SB585-SSA1,7,66
71.47
(3y) (a) 2. “Eligible employee" has the meaning given in s. 238.308 (1)
(a).
SB585-SSA1,25
7Section
25. 71.47 (3y) (b) 6. of the statutes is created to read:
SB585-SSA1,7,138
71.47
(3y) (b) 6. For taxable years beginning after December 31, 2023, the
9amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for
10employees, not to exceed 15 percent of such investment, and the amount of the
11investment made in establishing an employee child care program for employees, not
12to exceed 15 percent of such
investment, as determined by the Wisconsin Economic
13Development Corporation.
SB585-SSA1,26
14Section 26
. 71.47 (3y) (c) 3. of the statutes is created to read:
SB585-SSA1,7,1715
71.47
(3y) (c) 3. No credit may be allowed under par. (b) 4. for any amount of
16personal property investment or real property investment used to claim a credit
17under par. (b) 6.
SB585-SSA1,27
18Section
27. 238.30 (2m) (a) of the statutes is amended to read:
SB585-SSA1,7,2519
238.30
(2m) (a) Except as provided in par. (b)
and ss. 238.308 (1) (b) and 238.399
20(1) (as), “full-time job" means a regular, nonseasonal full-time position in which an
21individual, as a condition of employment, is required to work at least 2,080 hours per
22year, including paid leave and holidays, and for which the individual receives pay
23that is equal to at least 150 percent of the federal minimum wage and benefits that
24are not required by federal or state law. “Full-time job" does not include initial
25training before an employment position begins.
SB585-SSA1,28
1Section
28. 238.308 (1) of the statutes is renumbered 238.308 (1) (intro) and
2amended to read:
SB585-SSA1,8,33
238.308
(1) Definition Definitions. (intro.) In this section
, “eligible:
SB585-SSA1,8,5
4(a) “Eligible employee" means a person employed in a full-time job by a person
5certified under sub. (2).
SB585-SSA1,29
6Section
29. 238.308 (1) (b) of the statutes is created to read:
SB585-SSA1,8,107
238.308
(1) (b) For taxable years beginning after December 31, 2023, “full-time
8job” means a nonseasonal job for which the annual pay is more than the amount
9determined by multiplying 2,080 by 150 percent of the federal minimum wage and
10for which the person is offered retirement, health, and other benefits.
SB585-SSA1,30
11Section
30. 238.308 (2) (c) of the statutes is created to read:
SB585-SSA1,8,1412
238.308
(2) (c) The corporation shall approve or deny the certification of a
13person under par. (a) within 90 days after receiving a person's application for
14certification.
SB585-SSA1,31
15Section
31. 238.308 (3) of the statutes is renumbered 238.308 (3) (a) and
16amended to read:
SB585-SSA1,8,2217
238.308
(3) (a)
A For taxable years beginning before January 1, 2024, a person
18is eligible to receive tax benefits if, in each year for which the person claims tax
19benefits under this section, the person increases net employment in this state in the
20person's business above the net employment in this state in the person's business
21during the year before the person was certified under sub. (2), as determined by the
22corporation under its policies and procedures.
SB585-SSA1,32
23Section
32. 238.308 (3) (b) of the statutes is created to read:
SB585-SSA1,9,3
1238.308
(3) (b) For taxable years beginning after December 31, 2023, a person
2is eligible to receive tax benefits if, in each year for which the person claims tax
3benefits under this section, all of the following conditions are met:
SB585-SSA1,9,64
1. The person makes a capital investment in the person's business, and the
5person either creates new full-time jobs or retains existing full-time jobs, as
6determined by the corporation under its policies and procedures.