2. At least match the amount it receives through the program and invests in
a business with an investment in that same business of moneys from sources other
than the program. The investment manager must ensure that, on average, for every
$1 a venture capital fund receives through the program and invests in a business,
the venture capital fund invests $2 in that business from sources other than the
program.
3. Provide the investment manager with the information necessary to complete
the reports described below.
The bill requires the investment manager to annually submit to WEDC an
audit of the investment manager's financial statements, the rate of return from
investments made through the program, and information on each venture capital
fund participating in the program and business in which investment were made.
WEDC must submit this information to the legislature. The bill also requires the
investment manager to submit quarterly reports to the oversight board.
Changes to the state main street program
Under current law, WEDC is required to establish and administer a state main
street program to coordinate state and local participation in programs offered by the
national main street center to assist municipalities in planning, managing, and
implementing programs for the revitalization of commercial areas having historical
significance. Under the current state main street program, WEDC is required to do
all of the following:
1. Contract with the national main street center for services related to
revitalizing commercial areas having historical significance.
2. Develop a plan describing the objectives of the state main street program and
the methods by which WEDC will carry out certain responsibilities specified by law.
3. Coordinate with other state and local public and private entities in relation
to the state main street program.
4. Annually select, upon application, up to five municipalities to participate in
the state main street program. The program for each municipality concludes after
five years. The corporation is required to select program participants representing
various geographical regions and populations.
5. Develop objective criteria for use in selecting participants in the state main
street program.

6. Provide training, technical assistance, and information on the revitalization
of commercial areas that have historical significance to municipalities not
participating in the state main street program.
7. Annually expend at least $250,000 annually on the state main street
program.
The bill substantially replaces WEDC's duties under the state main street
program and instead requires WEDC, in accordance with guidelines of the national
main street center, to assist municipalities in planning, managing, and
implementing programs for the revitalization of downtown areas and historic
commercial districts, including by doing all of the following:
1. Assisting communities in restoring and retaining the historic character of
their downtown areas and historic commercial districts.
2. Promoting business investment, assisting in retaining existing small
businesses, and promoting new businesses in downtown areas and historic
commercial districts.
3. Assisting in strengthening the local tax base.
4. Assisting in the creation of employment opportunities in downtown areas
and historic commercial districts.
5. Enhancing the economic viability of downtown areas and historic
commercial districts.
The bill also requires WEDC to annually select, upon application, up to five new
municipalities to participate in the state main street program, but a municipality's
participation in the program is not limited to five years. The bill continues to require
the corporation to provide related training, technical assistance, and information to
municipalities not participating in the state main street program.
Finally, under the bill, WEDC is no longer required to expend up to $250,000
annually on the state main street program.
Wage thresholds for business development and enterprise zone tax credits
The bill raises the minimum wage thresholds for the business development and
enterprise zone tax credits for businesses that enter into contracts with WEDC after
December 31, 2021. Under current law, WEDC may certify businesses that engage
in qualifying activities, including full-time job creation and retention, to claim the
credits. One requirement for claiming either credit is that the business enter into
a contract with WEDC. In its contracts, WEDC uses a definition of “full-time
employee” that means an individual who, among other things, is paid at least 150
percent of the federal minimum wage. The bill changes this minimum wage
threshold to $27,900 for the business development tax credit and to $27,900 in a tier
I county or municipality and $37,000 in a tier II county or municipality for the
enterprise zone tax credit, with all these amounts adjusted annually for inflation.
Additionally, under current law, the enterprise zone tax credit is partially based on
the wages paid to zone employees that are at least 150 percent of the federal
minimum wage in a tier I county or municipality or $30,000 in a tier II county or
municipality. The bill changes these thresholds to $27,900 and $37,000, with both
amounts adjusted annually for inflation.

The bill also modifies the maximum wage earnings limit for businesses that
enter into contracts with WEDC after December 31, 2021. Under current law, the
maximum wage earnings that may be considered per employee for the enterprise
zone tax credit is $100,000. The bill increases this amount to $123,000, which is
adjusted annually for inflation, and establishes the same dollar amount limit for the
business development tax credit.
Designation of enterprise zones
Current law allows WEDC to designate an unlimited number of enterprise
zones, with each designation subject to approval by JCF under passive review.
Current law also provides that an enterprise zone expires after 12 years and, upon
such expiration,WEDC may designate a new zone subject to JCF approval.
The bill authorizes WEDC to designate up to 30 enterprise zones and repeals
the requirement that WEDC receive approval from JCF. Under the bill, WEDC may
cancel the designation of an enterprise zone if WEDC revokes the certifications for
all tax benefits within the zone and may designate a new zone after the cancellation.
The bill also provides that if an enterprise zone expires under the contract with the
business certified to claim tax benefits, WEDC may designate a new zone, and
WEDC is provided this authority on a retroactive basis.
Financial assistance for underserved communities
The bill requires WEDC to expend $5,000,000 annually to provide grants,
loans, and other assistance to underserved communities in Wisconsin, including
members of minority groups, woman-owned businesses, and individuals and
businesses in rural areas.
Funding for regional economic development organizations to assist with
pandemic recovery