Wisconsin 2023-2024 Regular Session Status: Enacted 9 R cosponsors

AB 627 — Relating to: various changes to the business development tax credit. (FE)

Last action — Published 3-22-2024

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced November 08, 2023. Enacted.

Signed by Governor Tony Evers (Democratic) on March 21, 2024.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 10 sponsors

    10 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (9 R).

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

170 added · 18 removed

Plain-language change summary

The recent amendment to Bill AB 627 modifies the business development tax credit eligibility requirements. Specifically, it lowers the threshold for capital investment projects from $1,000,000 to $250,000, making it easier for smaller businesses to qualify for tax credits. This change is significant because it opens up opportunities for a wider range of businesses to benefit from tax relief and support economic growth, especially for smaller enterprises.

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Latest
- 2024 LEGISLATURE LRBa1042/1 MDE:wlj ASSEMBLY AMENDMENT 1, TO ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 627 January 30, 2024 - Offered by RepresentatiRMSTRONG.
- 2024 LEGISLATURE LRB-0665/1 MDE&KP:cjs&emw ASSEMBLY BILL 627 November 8, 2023 - Introduced by Representatives RMSTRONG , MACCO , EHNKE , D ONOVAN, HURD, M AXEY, MURSAU, OC ONNOR, VANDER MEER and Z IMMERMAN , cosponsored by Senators EYEN and BALLWEG.
At the locations indicated, amend the substitute amendment as follows:
Referred to Committee on Ways and Means.
A N A CT to renumber and amend 238.308 (3);
to amend 71.07 (3y) (b) 4., 71.28 (3y) (b) 4., 71.47 (3y) (b) 4., 238.308 (4) (a) 4.
and 238.308 (5) (a);
and to create 71.07 (3y) (b) 4m., 71.07 (3y) (b) 6., 71.28 (3y) (b) 4m., 71.28 (3y) (b) 6., 71.47 (3y) (b) 4m., 71.47 (3y) (b) 6., 238.308 (2) (c), 238.308 (3) (b), 238.308 (4) (a) 4m.
and 238.308 (4) (a) 6.
of the statutes;
relating to:
various changes to the business development tax credit.
Analysis by the Legislative Reference Bureau This bill makes several adjustments to the business development tax credit.
The changes apply to taxable years beginning after December 31, 2022.
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.
Currently, a person is eligible for 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 creates new jobs or retains existing jobs and the person makes a capital investment in the person's business;
and 2) the person does not decrease net employment in this state - 2024 Legislature - 2 - LRB-0665/1 MDE&KP:cjs&emw ASSEMBLY BILL 627 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.
Also, under current law, a person may claim tax benefits of up to 3 percent of the person's personal property investment and up to 5 percent of the person's real property investment in a capital investment project, if the project involves a total capital investment of at least $1,000,000 or, if less than $1,000,000, the project involves a capital investment that is equal to at least $10,000 per eligible employee employed on the project.
The bill changes those limits to up to 10 percent of the person's personal property investment and up to 10 percent of the person's real property investment.
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.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1.
71.07 (3y) (b) 4.
of the statutes is amended to read:
71.07 (3y) (b) 4.
The For taxable years beginning before January 1, 2023, the amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies s.
238.308 (4) (a) 4., as determined by the Wisconsin Economic Development Corporation.
SECTION 2.
71.07 (3y) (b) 4m.
of the statutes is created to read:
71.07 (3y) (b) 4m.
For taxable years beginning after December 31, 2022, the amount of the personal property investment, not to exceed 10 percent of such investment, and the amount of real property investment, not to exceed 10 percent of such investment, in a capital investment project that satisfies s.
238.308 (4) (a) 4m., as determined by the Wisconsin Economic Development Corporation.
LRB-0665/1 - 2024 Legislature - 3 - MDE&KP:cjs&emw SECTION 3 ASSEMBLY BILL 627 SECTION 3.
71.07 (3y) (b) 6.
of the statutes is created to read:
71.07 (3y) (b) 6.
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For taxable years beginning after December 31, 2022, the amount of the investment in workforce housing, as defined in s.
234.66 (1) (i), for eligible employees, not to exceed 15 percent of such investment, and the amount of the investment in establishing an employee child care program for eligible employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.
SECTION 4.
71.28 (3y) (b) 4.
of the statutes is amended to read:
71.28 (3y) (b) 4.
Ther taxable years beginning before January 1, 2023, the amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies s.
238.308 (4) (a) 4., as determined by the Wisconsin Economic Development Corporation.
SECTION 5.
71.28 (3y) (b) 4m.
of the statutes is created to read:
71.28 (3y) (b) 4m.
For taxable years beginning after December 31, 2022, the amount of the personal property investment, not to exceed 10 percent of such investment, and the amount of the real property investment, not to exceed 10 percent of such investment, in a capital investment project that satisfies s.
238.308 (4) (a) 4m., as determined by the Wisconsin Economic Development Corporation.
SECTION 6.
71.28 (3y) (b) 6.
of the statutes is created to read:
71.28 (3y) (b) 6.
For taxable years beginning after December 31, 2022, the amount of the investment in workforce housing, as defined in s.
234.66 (1) (i), for eligible employees, not to exceed 15 percent of such investment, and the amount of the investment made in establishing an employee child care program for eligible - 2024 Legislature - 4 - LRB-0665/1 MDE&KP:cjs&emw ASSEMBLY BILL 627 SECTION 6 employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.
SECTION 7.
71.47 (3y) (b) 4.
of the statutes is amended to read:
71.47 (3y) (b) 4.
The For taxable years beginning before January 1, 2023, the amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies s.
238.308 (4) (a) 4., as determined by the Wisconsin Economic Development Corporation.
SECTION 8.
71.47 (3y) (b) 4m.
of the statutes is created to read:
71.47 (3y) (b) 4m.
For taxable years beginning after December 31, 2022, the amount of the personal property investment, not to exceed 10 percent of such investment, and the amount of the real property investment, not to exceed 10 percent of such investment, in a capital investment project that satisfies s.
238.308 (4) (a) 4m., as determined by the Wisconsin Economic Development Corporation.
SECTION 9.
71.47 (3y) (b) 6.
of the statutes is created to read:
71.47 (3y) (b) 6.
For taxable years beginning after December 31, 2022, the amount of the investment in workforce housing, as defined in s.
234.66 (1) (i), for eligible employees, not to exceed 15 percent of such investment, and the amount of the investment made in establishing an employee child care program for eligible employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.
SECTION 10.
238.308 (2) (c) of the statutes is created to read:
238.308 (2) (c) The corporation shall approve or deny the certification of a person under par.
(a) within 90 days after receiving a person's application for certification.
LRB-0665/1 - 2024 Legislature - 5 - MDE&KP:cjs&emw SECTION 11 ASSEMBLY BILL 627 SECTION 11.
238.308 (3) of the statutes is renumbered 238.308 (3) (a) and amended to read:
238.308 (3) (a) A For taxable years beginning before January 1, 2023, a person is eligible to receive tax benefits 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.
SECTION 12.
238.308 (3) (b) of the statutes is created to read:
238.308 (3) (b) For taxable years beginning after December 31, 2022, a person is eligible to receive tax benefits if, in each year for which the person claims tax benefits under this section, all of the following conditions are met:
Page 9, line 10:
The person creates new jobs or retains existing jobs and the person makes a capital investment in this state in the person's business, as determined by the corporation under its policies and procedures.
after that line insert:
2.
“SECTION32m.
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 is certified under sub.
(2), as determined by the corporation under its policies and procedures.
SECTION 13.
An amount equal to up to 3 percent of the person's personal property investment and up to 5 percent of the person's real property investment in a capital investment project, if the project involves a total capital investment of at least $1,000,000 $250,000 or, if less than $1,000,000 $250,000, the project involves a capital investment that is equal to at least $10,000 per eligible employee employed on the project.”.
Anor taxable years beginning before January 1, 2023, an amount equal to up to 3 percent of the person's personal property investment and up to 5 percent of the person's real property investment in a capital investment project, if the project involves a total capital investment of at least $1,000,000 or, if less than - 2024 Legislature - 6 - LRB-0665/1 MDE&KP:cjs&emw ASSEMBLY BILL 627 SECTION 13 $1,000,000, the project involves a capital investment that is equal to at least $10,000 per eligible employee employed on the project.
2.
SECTION 14.
Page 11, line 1:
238.308 (4) (a) 4m.
delete “and".
of the statutes is created to read:
3.
238.308 (4) (a) 4m.
Page 11, line 2:
For taxable years beginning after December 31, 2022, an amount equal to up to 10 percent of the person's personal property investment and up to 10 percent of the person's real property investment in a capital investment project, if the project involves a total capital investment of at least $1,000,000 or, if less than $1,000,000, the project involves a capital investment that is equal to at least $10,000 per eligible employee employed on the project.
after “6." insert “, and 238.308 (4) (a) 4.".
SECTION 15.
238.308 (4) (a) 6.
of the statutes is created to read:
238.308 (4) (a) 6.
For taxable years beginning after December 31, 2022, an amount equal to up to 15 percent of the person's investment in workforce housing, as defined in s.
234.66 (1) (i), for eligible employees and up to 15 percent of the person's investment in establishing an employee child care program for eligible employees.
SECTION 16.
238.308 (5) (a) of the statutes is amended to read:
238.308 (5) (a) The corporation may require a person to repay any tax benefits the person claims for a year in which the person failed to employ an eligible employee required by comply with an agreement under sub.
(2) (b).
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Action History

  1. Published 3-22-2024

  2. Report approved by the Governor on 3-21-2024. 2023 Wisconsin Act 143

  3. Presented to the Governor on 3-18-2024

  4. Report correctly enrolled on 3-15-2024

  5. Received from Senate concurred in

  6. Ordered immediately messaged

  7. Read a third time and concurred in, Ayes 26, Noes 6

  8. Rules suspended to give bill its third reading

  9. Ordered to a third reading

  10. Read a second time

  11. Senator Spreitzer added as a cosponsor

  12. Placed on calendar 3-12-2024 pursuant to Senate Rule 18(1)

  13. Public hearing requirement waived by committee on Senate Organization, pursuant to Senate Rule 18 (1m), Ayes 3, Noes 2

  14. Available for scheduling

  15. Report concurrence recommended by Committee on Universities and Revenue, Ayes 6, Noes 2

  16. Executive action taken

  17. Read first time and referred to committee on Universities and Revenue

  18. Received from Assembly

  19. Ordered immediately messaged

  20. Read a third time and passed

  21. Rules suspended

  22. Ordered to a third reading

  23. Assembly Substitute Amendment 1 adopted

  24. Assembly Amendment 1 to Assembly Substitute Amendment 1 adopted

  25. Read a second time

  26. Placed on calendar 2-13-2024 by Committee on Rules

  27. Referred to committee on Rules

  28. Report passage as amended recommended by Joint Committee on Finance, Ayes 15, Noes 0

  29. Report Assembly Substitute Amendment 1 adoption recommended by Joint Committee on Finance, Ayes 15, Noes 0

  30. Report Assembly Amendment 1 to Assembly Substitute Amendment 1 adoption recommended by Joint Committee on Finance, Ayes 15, Noes 0

  31. Executive action taken

  32. Withdrawn from committee on Rules and referred to joint committee on Finance pursuant to Assembly Rule 42 (3)(c)

  33. Assembly Amendment 1 to Assembly Substitute Amendment 1 offered by Representative Armstrong

  34. Referred to committee on Rules

  35. Report passage as amended recommended by Committee on Ways and Means, Ayes 12, Noes 0

  36. Report Assembly Substitute Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 12, Noes 0

  37. Executive action taken

  38. Public hearing held

  39. Assembly Substitute Amendment 1 offered by Representative Armstrong

  40. Public hearing held

  41. Fiscal estimate received

  42. Fiscal estimate received

  43. Read first time and referred to Committee on Ways and Means

  44. Introduced by Representatives Armstrong, Macco, Behnke, Donovan, Hurd, Maxey, Mursau, O'Connor, VanderMeer and Zimmerman; cosponsored by Senators Feyen and Ballweg

Sponsors

Sponsorship breakdown

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10 sponsors · 0 co-sponsors · 122 not signed on · 4 voted No

Sponsors (10)

Co-sponsors (0)

None.

Not signed on (122)

122 members have not signed on to this bill.

Show all 122 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

CONCURRENCE

Passed 26 Yea · 6 Nay
Party YeaNayPresentNot Voting
Unaffiliated 3200
Republican 17200
Democrat 6200
Total 26600
% of votes cast 81%19%0%0%
How each member voted (32)
Member Party Vote
AGARD — Yea
BALLWEG — Yea
JOHNSON — Yea
COWLES — Nay
STROEBEL — Nay
Carpenter, Tim Democrat Nay
Hesselbein, Dianne Democrat Yea
Larson, Chris Democrat Nay
Pfaff, Brad Democrat Yea
Roys, Kelda Democrat Yea
Smith, Jeff Democrat Yea
Spreitzer, Mark Democrat Yea
Wirch, Robert Democrat Yea
Bradley, Julian Republican Yea
Cabral-Guevara, Rachael Republican Yea
Felzkowski, Mary Republican Yea
Feyen, Dan Republican Yea
Hutton, Rob Republican Yea
Jacque, André Republican Yea
Jagler, John Republican Yea
James, Jesse Republican Yea
Kapenga, Chris Republican Nay
Knodl, Daniel Republican Yea
LeMahieu, Devin Republican Yea
Marklein, Howard Republican Yea
Nass, Steve Republican Nay
Quinn, Romaine Republican Yea
Stafsholt, Rob Republican Yea
Testin, Patrick Republican Yea
Tomczyk, Cory Republican Yea
Wanggaard, Van Republican Yea
Wimberger, Eric Republican Yea

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors AB 627?
AB 627 is sponsored by Armstrong, David (Republican), Macco, Behnke, Elijah (Republican), Donovan, Bob (Republican), Hurd, Karen (Republican), Maxey, Dave (Republican), Mursau, Jeffrey (Republican), O'Connor, Jerry (Republican), VanderMeer, Nancy (Republican), and Zimmerman, Shannon (Republican).
What is the current status of AB 627?
This bill has been enacted into law. Introduced November 08, 2023. Enacted.
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