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ECONOMIC GROWTH INITIATIVES
Assembly Democrats know that, just as no
one event triggered the global economic downturn, no one effort will
put Wisconsin on a path to economic recovery. That is why we have
worked not only to immediately invest in infrastructure projects
that have created jobs, but also to approve business credits and
incentives that will boost Wisconsin businesses now and far into the
future. We are focusing our efforts on employers and employees
alike, and hope that with a multi-faceted approach, we are building
a stronger economic future for all in Wisconsin. Here’s a review of
our work, thus far:
Encouraging Entrepreneurship with Aid for Start-Up Ventures
Growing Wisconsin’s economy means making the state an appealing
environment for entrepreneurs to take a chance and open a new
business. Wisconsin’s angel investment and early seed programs have
met with success, attracting bioindustry and new technology
ventures.
This year, we have expanded these programs and added to our business
start-up toolbox in the following ways:
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We changed the Angel
Investment Credit to allow investors to claim a tax credit of
25% of their investment in the year the investment was made
rather than 12.5% over two years.
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We eliminated the $2
million maximum investment by an investor in a qualified new
business venture (QNBV) that may qualify for credits.
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We expanded criteria
for certification of a QNBV to include businesses engaged staple
Wisconsin industries such as manufacturing and agriculture as
well as developing Wisconsin industries such as biotechnology
and clean energy creation.
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We extended the
Early Stage Seed Investment Credit to insurance companies
subject to the gross premiums tax.
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We eliminated the
limit of $52.5 million on the total amount of Early Stage Seed
Credits that may be claimed for all taxable years.
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We increased the
annual amount of credits Commerce may allocate under the Early
Stage Investment program from $11.5 million to $37 million.
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We authorized
transferability for the Early Stage Seed Investment Credit
beginning with tax years starting on 1/1/09.
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We increased the
maximum limit on the amount of investments that qualify for
angel investment or early stage tax credits that a QNBV may
receive.
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We created a capital
gains break of up to $10 million for investors who invest their
capital gains in Wisconsin start-up businesses.
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We created a
refundable beginning farmer tax credit and a refundable farm
asset owner tax credit.
Growing and Retaining
Small to Mid-Size Businesses [Top]
Small and mid-size Wisconsin businesses create livable communities
and are responsible for the employment of hundreds of thousands of
people. But, these businesses have suffered setbacks in our current
economic climate, and we are working to address their needs.
Here’s
what we have accomplished so far this year:
We created an aggressive Jobs Tax Credit program for significant job
creation designed for small and medium sized businesses. The program
will provide up to $10 million per year in payroll credits to
businesses. A portion of the wages paid on new, family-supporting
jobs would be eligible for up to a 10% credit. Worker training costs
would also be eligible for the credit.
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We established
Development Opportunity Zones in Kenosha and Janesville that
provide up to $20 million in tax credits for small and mid-size
companies that create and sustain jobs.
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We created a
refundable dairy co-op tax credit to allow members of a dairy
cooperative to claim a credit for 10% of the amount paid for
dairy modernization or expansion expenses.
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We created a
refundable meat processing tax credit to allow meat processors
to claim a credit for 10% of the amount paid for meat processing
modernization or expansion costs.
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We created a new tax
exemption for machinery used exclusively for research and
development in biotechnology and manufacturing.
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We created a sales
and use tax exemption for fuel consumed by boats during business
associated with chartered fishing by persons with a sport
trolling license.
Maintaining and
Expanding Manufacturing and Large Business Enterprises
[Top]
Major manufacturers and other large businesses play a significant
role in our state’s overall economic health and employment levels.
It’s vital that we create an environment for keystone businesses to
survive and thrive in Wisconsin, and we have created new programs
and incentives to support them.
Here’s a review of those measures:
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We created a Super
Research and Development Tax Credit that establishes a
dollar-for-dollar credit to offset future tax liabilities for
qualified research expenses.
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We consolidated our
$94 million Economic Development Tax Zone Credit program to
increase our ability to target the credits to the right
businesses. Under our new program, a person that creates jobs,
makes capital investments, trains employees or relocates/retains
a corporate headquarters in Wisconsin will be eligible to
receive job creation incentives.
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We further bolstered
the Enterprise Zone Tax credit program by allocating an
additional $3.5 million in job creation incentives for companies
that create and retain family sustaining jobs in Wisconsin. The
amount of the incentive is based upon the company’s payroll paid
to full-time employees.
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We made an
additional expansion of the Enterprise Zone Program by adding a
10% refundable credit for companies making significant capital
expenditures in an enterprise zone.
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Just as they do for
small and mid-size companies, the Development Opportunity Zones,
established in Kenosha and Janesville, provide up to $20 million
in tax credits for large companies that create and sustain jobs.
Supporting Wisconsin
Workers to Train for Careers in a New Economy [Top]
To have a strong economy, we must continue to have a world-class
workforce. And, at a time when our business climate is changing,
funding for worker retraining programs is critical.
Here’s a look at
our efforts to support Wisconsin workers:
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We have increased
funding for Wisconsin’s technical college system – the front
line in worker retraining efforts – by $5.2 million.
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We extended federal
unemployment benefits to allow Wisconsin workers a chance to
complete an educational program while they look for a new job.
Targeting Investments
in Economic Development Projects [Top]
With a global economic collapse, Wisconsin needed an infusion of
money, to keep businesses afloat and workers in jobs. With
investments in infrastructure improvements, we are not only
achieving goals for job creation and business retention, but making
Wisconsin a more attractive place for new business.
Here’s a review
of what infrastructure improvements have been funded by recovery
dollars in Wisconsin:
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We have created
family-supporting jobs through investments in Wisconsin’s
infrastructure, including approximately $250 million worth of
projects to improve our highways, harbors, rivers and railways.
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We have also
invested $13 million in stimulus funds for construction and
rehabilitation of seven airports in Wisconsin, and $4 million in
bonding authority for dam safety and repair projects needed
after the flooding of 2008 to improve the safety of our citizens
and communities.
Directing Business to
Wisconsin Companies and Workers [Top]
If we are to grow Wisconsin’s economy, we must put our money where
our mouth is, buying from quality businesses operating in-state and
from companies that hire American workers.
We have approved the
following legislative measures, with that goal in mind:
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We approved the
American Jobs Act, which requires all state contracts go to
American companies.
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We also passed the
Wisconsin First Act, which pushes for at least 20% of all state
spending be directed to Wisconsin businesses.
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