Section 238.23. Technology zones.

 

(1)  In this section, “tax credit" means a credit under s. 71.07 (2dm) , (2dx) , or (3g) , 71.28 (1dm) , (1dx) , or (3g) , or 71.47 (1dm) , (1dx) , or (3g) .

(2)  

(a) Except as provided in par. (c) , the corporation may designate up to 8 areas in the state as technology zones. A business that is located in a technology zone and that is certified by the corporation under sub. (3) is eligible for a tax credit as provided in sub. (3) .

(b) The designation of an area as a technology zone shall be in effect for 10 years from the time that the corporation first designates the area. Not more than $5,000,000 in tax credits may be claimed in a technology zone, except that the corporation may allocate the amount of unallocated airport development zone tax credits, as provided under s. 238.3995 (3) (b) , to technology zones for which the $5,000,000 maximum allocation is insufficient. The corporation may change the boundaries of a technology zone during the time that its designation is in effect. A change in the boundaries of a technology zone does not affect the duration of the designation of the area or the maximum tax credit amount that may be claimed in the technology zone.

(c) No area may be designated as a technology zone under this subsection on or after March 6, 2009.

(3)  

(a) Except as provided in par. (e) , the corporation may certify for tax credits in a technology zone a business that satisfies all of the following requirements:

1. The business is located in the technology zone.

2. The business is a new or expanding business.

3. The business is a high-technology business.

(b) In determining whether to certify a business under this subsection, the corporation shall consider all of the following:

1. How many new jobs the business is likely to create.

2. The extent and nature of the high technology used by the business.

3. The likelihood that the business will attract related enterprises.

4. The amount of capital investment that the business is likely to make in the state.

5. The economic viability of the business.

(c) When the corporation certifies a business under this subsection, the corporation shall establish a limit on the amount of tax credits that the business may claim. Unless its certification is revoked, and subject to the limit on the tax credit amount established by the corporation under this paragraph, a business that is certified may claim a tax credit for 3 years, except that a business that experiences growth, as determined for that business by the corporation under par. (d) and sub. (5) (e) , may claim a tax credit for up to 5 years.

(d) The corporation shall enter into an agreement with a business that is certified under this subsection. The agreement shall specify the limit on the amount of tax credits that the business may claim, the extent and type of growth, which shall be specific to the business, that the business must experience to extend its eligibility for a tax credit, the business' baseline against which that growth will be measured, any other conditions that the business must satisfy to extend its eligibility for a tax credit, and reporting requirements with which the business must comply.

(e) No business may be certified under this subsection on or after March 6, 2009.

(4)  

(a) The corporation shall notify the department of revenue of all the following:

1. A technology zone's designation.

2. A business's certification and the limit on the amount of tax credits that the business may claim.

3. The extension or revocation of a business's certification.

(b) The corporation shall annually verify information submitted to the corporation under ss. 71.07 (2dm) , (2dx) , and (3g) , 71.28 (1dm) , (1dx) , and (3g) , and 71.47 (1dm) , (1dx) , and (3g) .

(5)  The corporation shall adopt rules for the operation of this section, including rules related to all the following:

(a) Criteria for designating an area as a technology zone.

(b) A business's eligibility for certification, including definitions for all of the following:

1. New or expanding business.

2. High-technology business.

(c) Certifying a business, including use of the factors under sub. (3) (b) .

(d) Standards for establishing the limit on the amount of tax credits that a business may claim.

(e) Standards for extending a business's certification, including what measures, in addition to job creation, the corporation will use to determine the growth of a specific business and how the corporation will establish baselines against which to measure growth.

(f) Reporting requirements for certified businesses.

(g) The exchange of information between the corporation and the department of revenue.

(h) Reasons for revoking a business's certification.

(i) Standards for changing the boundaries of a technology zone.

2001 a. 16 , 104 ; 2007 a. 183 ; 2009 a. 2 ; 2011 a. 32 s. 3448 ; Stats. 2011 s. 238.23; 2015 a. 55 .