Wisconsin Statutes 238.16 – Jobs tax credit
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Wisconsin Statutes 238.16
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Municipality: includes cities and villages; it may be construed to include towns. See Wisconsin Statutes 990.01
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
- State: when applied to states of the United States, includes the District of Columbia, the commonwealth of Puerto Rico and the several territories organized by Congress. See Wisconsin Statutes 990.01
- Year: means a calendar year, unless otherwise expressed; "year" alone means "year of our Lord". See Wisconsin Statutes 990.01
(1) Definitions. In this section:
(a)
1. Except as provided in subd. 2., “business” means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.
2. “Business” does not include a store or shop in which retail sales is the principal business.
(b) “Eligible employee” means a person employed in a full-time job by a person certified under sub. (2).
(c)
1. Except as provided in subd. 2., “full-time job” means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. “Full-time job” does not include initial training before an employment position begins.
2. The corporation may grant exceptions to the requirement under subd. 1. that a full-time job means a position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year if all of the following apply:
a. The annual pay for the position is more than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage.
b. An individual in the position is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.
(2) The corporation may certify a person to receive tax benefits under this section if all of the following apply:
(a) The person is operating or intends to operate a business in this state.
(b) The person applies under this section and enters into a contract with the corporation.
(3) Eligibility for tax benefits. A person certified under sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person’s business above the net employment in this state in the person’s business during the year before the person was certified under sub. (2), as determined by the corporation under its policies and procedures, and one of the following applies:
(a) In a tier I county or municipality, an eligible employee for whom the person claims a tax credit will earn at least the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in wages from the person in the year for which the credit is claimed.
(b) In a tier II county or municipality, an eligible employee for whom the person claims a tax credit will earn at least $30,000 in wages from the person in the year for which the credit is claimed.
(c) In a tier I county or municipality or a tier II county or municipality, the person improves the job-related skills of any eligible employee, trains any eligible employee on the use of job-related new technologies, or provides job-related training to any eligible employee whose employment with the person represents the employee’s first full-time job.
(4) Duration, limits, and expiration.
238.16(4)(a) (a) The certification of a person under sub. (2) may remain in effect for no more than 10 cumulative years.
(b)
1. The corporation may award to a person certified under sub. (2) tax benefits for each eligible employee in an amount equal to up to 10 percent of the wages paid by the person to that employee or $10,000, whichever is less, if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:
a. In a tier I county or municipality, at least the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage.
b. In a tier II county or municipality, at least $30,000.
2. The corporation may award to a person certified under sub. (2) tax benefits in an amount to be determined by the corporation for costs incurred by the person to undertake the training activities described in sub. (3) (c).
(c) The corporation may allocate up to $10,000,000 in tax benefits under this section in any calendar year.
(5) Duties of the corporation.
238.16(5)(c) (c) The corporation may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under sub. (2) (b).
(e) The corporation shall verify, under s. 238.03 (2) (e), the information submitted to the corporation by the person for the purpose of claiming tax benefits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q).
(f) The corporation shall adopt policies and procedures for the implementation and operation of this section, including policies and procedures relating to the following:
1. The definitions of a tier I county or municipality and a tier II county or municipality. The corporation may consider all of the following information when establishing the definitions required under this subdivision:
a. Unemployment rate.
b. Percentage of families with incomes below the poverty line established under 42 U.S. Code § 9902 (2).
c. Median family income.
d. Median per capita income.
e. Other significant or irregular indicators of economic distress, such as a natural disaster or mass layoff.
2. A schedule of additional tax benefits for which a person who is certified under sub. (2) and who incurs costs related to job training under sub. (3) (c) may be eligible.
3. Conditions for the revocation of a certification.
4. Conditions for the repayment of tax benefits under par. (c).
5. Determining a change in net employment in a person’s business.
(6) Sunset. No tax benefits may be awarded under this section after December 31, 2015, unless the tax benefits were allocated to a taxpayer by the corporation in a contract that the corporation executed before that date or in a letter of intent to enter into such a contract that the corporation issued before that date.