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A cursory overview of the economic and workforce development highlights of the recently approved State of Wisconsin budget By Sean Fitzgerald, New North B2B publisher The work of hammering out the details of the recently passed 2015-2017 Wisconsin biennial budget appeared to endure longer than usual in the hands of the Legislature’s Joint Finance Committee. Once the proposal arrived at lawmaker’s doorsteps at the end of June, both the state assembly and senate took about a week to finalize the two-year $73 billion spending package, up nearly 7 percent from the recently expired 2013-2015 biennial budget of roughly $68 billion. Perhaps surprisingly, Republicans in the legislature scaled back a handful of more grandiose proposals from Gov. Scott Walker. Among those was Walker’s plan to borrow $1.3 billion to improve transportation infrastructure, which at the end of budget deliberations appropriated $850 million in bonding for the Department of Transportation. Gov. Walker also proposed cuts of $300 million to the University of Wisconsin System, which was minimized to a reduction of $250 million in funds from two years ago. The budget added $600 million to Medicaid. It provided property tax relief in the form of increased aid to school district while at the same time limiting their ability to increase tax levies, which is expected to essentially hold a property owner’s cumulative property tax bill flat over the next two years. The budget also repeals the prevailing wage law which required local governments to pay construction workers minimum salaries on public projects. The following includes some of the economic and business-related highlights of the state budget signed by Gov. Walker on July 12, which covers the period from July 1, 2015 to June 30, 2017.
Economic Development Created the Business Development Tax Credit ($39 million available over the biennium) – Combines and streamlines the existing Economic Development and Jobs Tax Credit Program into a single refundable incentive program to be used for business development opportunities. This new credit will receive $17 million in 2016 and $22 million in 2017 to stimulate job creation, improve employee training and retention, and incentivize company investments in Wisconsin. The program includes the ability to carry forward unused credits as well as the ability to request reallocations through the qualified new business venture investment program allocation as needed. New economic development and jobs tax credits will only be awarded through Dec. 31, 2015. 34 | August 2015 | NNB2B
The budget increases the number of Enterprise Zones up to 30 from the current 20 such zones that have been awarded in previous years. Fabrication Laboratory Grant Program – Allocates $500,000 for WEDC to award grants of up to $75,000 for purchases of equipment used in fabrication laboratories for K-12 students. The Historic Tax Credit program is maintained from 2015 levels, and extends eligibility for Qualified Rehabilitation tax credits to the Northland Hotel project in Green Bay. Reduced the Manufacturing and Agricultural Tax Credit from 5.526 percent to 5.025 percent for Tax Year 2015, while allowing it to increase to 7.5 percent in Tax Year 2016.
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