Gov. Doyle: Governor Doyle Highlights Job-Creating Legislation

Contact:
Jessica Erickson, Governor’s Office, 608-261-2156

Bill Fixes Flaws in Wisconsin’s Technology Zone Tax Credit Program;
Marshfield’s Paget Equipment, Dental Crafts Among Firms Benefiting

MARSHFIELD – Governor Jim Doyle signed legislation today
that will let more businesses, like Marshfield’s Paget Equipment Company,
take full advantage of Wisconsin’s Technology Zone Tax Credit Program.

“This legislation enhances our Technology Zone program and
stimulates the growth of high tech businesses in Wisconsin, helping us grow
our economy and create more good-paying, family supporting jobs for our
citizens,” the Governor said during a visit to Paget Equipment.

Wisconsin’s Technology Zone program has eight technology
zones, each offering $5 million in tax credits to encourage technology
related business development. Since the program was launched two years ago,
flaws in the tax credit formula have prevented small, enterprising
businesses like Paget from realizing the full benefits of the program.

As the Governor explained, start-up companies at a critical
stage of development and established firms about to venture into a new phase
of development received less of a benefit than standard corporations
claiming the credit.

“These are the very firms that need our help, and we need
them to achieve our goal of prosperity,” the Governor said. The change was
among initiatives the Governor sought last fall when he announced “Grow
Wisconsin,” his comprehensive agenda of action to unleash over $1 billion in
public and private investments, and to create good, high-wage,
family-supporting jobs.

At the ceremonial bill signing, the Governor thanked a
bipartisan group of legislators from Central Wisconsin – including
Representatives Amy Sue Vruwink and Scott Suder and Senator Julie Lassa –
for proposing the legislation and working closely with the Departments of
Commerce and Revenue to fix the tax credit problem. The Governor signed the
legislation in Madison on November 12, 2003.

The credit’s major flaw was that it did not treat all
corporate structures uniformly. Start-up companies, which typically
organize as a partnership or a limited liability company, were not able to
take full advantage of the tax credits.

The legislation changed that aspect of the formula. Now
businesses can simply claim 10 percent of their capital investments for the
tax year. Other changes also enable more companies in technology zones to
benefit fully from the program.

“They will have more dollars to hire more people, and more
dollars to use as working capital,” Governor Doyle said.

The Governor noted Paget’s recent investment of nearly
$530,000 in new equipment and plant expansion. Paget employs 54 workers in
the production of pressure vessels, stainless steel tanks, heat exchangers,
and sanitary equipment sold to food and dairy, pharmaceutical, nuclear and
aviation industries, not only in America, but abroad. Paget pays its
workers on average earn nearly $16 an hour, and the company anticipates
hiring 15 new employees. President Jim Reigel said the tax credit changes
would help his company pay for the recent expansion.

Dental Crafters, Inc., another Marshfield company, also will
benefit from the tax credit changes, according to President Bob Slominski.
Last year, the firm built a new $1 million laboratory and purchased a
state-of-the-art, milling machine from 3M for approximately $200,000. Now
Dental Crafters is among a handful of labs in the nation that can
manufacture crowns with a ceramic core and porcelain top that are superior
to conventional crowns. Since last year, the firm has added six employees
and plans to hire more as it increases production of crowns and other dental
products. Its laboratory technicians earn an average wage of $12.63 an hour
plus benefits.