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.