238.398 Agricultural development zone.

(1) In this section, “rural municipality" means any of the following:

(a) A city, town, or village that is located in a county with a population density of less than 150 persons per square mile.

(b) A city, town, or village with a population of 6,000 or less.

(2)

(a) Except as provided under par. (c), the corporation may designate one area in the state as an agricultural development zone. The area must be located in a rural municipality. An agricultural business that is located in an agricultural development zone and that is certified by the corporation under sub. (3) is eligible for tax benefits as provided in sub. (3).

(b) The designation of an area as an agricultural development 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 benefits may be claimed in an agricultural development 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 agricultural development zones for which the $5,000,000 maximum allocation is insufficient. The corporation may change the boundaries of an agricultural development zone during the time that its designation is in effect. A change in the boundaries of an agricultural development zone does not affect the duration of the designation of the area or the maximum tax benefit amount that may be claimed in the agricultural development zone.

(c) No area may be designated as an agricultural development zone on or after March 6, 2009.

(3)

(a) Except as provided under par. (c), the corporation may certify for tax benefits in an agricultural development zone a new or expanding agricultural business that is located in the agricultural development zone. In determining whether to certify a business under this subsection, the corporation shall consider, among other things, the number of jobs that will be created or retained by the business.

(b) When the corporation certifies an agricultural business under this subsection, the corporation shall establish a limit on the amount of tax benefits that the business may claim. The corporation shall enter into an agreement with the business that specifies the limit on the amount of tax benefits that the business may claim and reporting requirements with which the business must comply.

(c) 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. An agricultural development zone's designation.

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

3. The revocation of a business's certification.

(b) The corporation shall annually verify information submitted to the corporation under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx), 71.47 (1dm) or (1dx), or 76.636.

(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 an agricultural development zone.

(b) Criteria for certifying a business for tax benefits.

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

(d) Reporting requirements for certified businesses.

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

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

(g) Standards for changing the boundaries of an agricultural development zone.

History: 2001 a. 16, 104; 2005 a. 259; 2007 a. 183; 2009 a. 2; 2011 a. 32 s. 3436; Stats. 2011 s. 238.398.