FOR MORE INFORMATION CONTACT:
State Representative Scott Suder: 1-608-267-0280
State Senator Dave Zien 1-608-266-7511
State Senator Ron Brown 1-608-266-8546
Suder/Zien ‘Job opportunity business zones’ bill
Headed to full Senate for Vote
MADISON…Businesses that relocate to or expand their current operations in rural Wisconsin moved one step closer today to receiving the state tax incentives they need to keep their doors open and remain competitive in the ever-expanding global marketplace, after the Senate Committee on Small Business chaired by State Senator Ron Brown (R-Eau Claire) passed the Rural JOBZ Act today. State Representative Scott Suder (R-Abbotsford) and State Senator Dave Zien (R-Wheaton) the original authors of the groundbreaking development initiative that will stimulate business creation and investment in rural Wisconsin through a series of state tax benefits for companies that relocate to or expand in one of 10 rural JOBZ zones. The two northern lawmakers say their rural jobs creation proposal is modeled after a similar program in Minnesota that has successfully helped generate nearly 2,500 new jobs in rural parts of Minnesota in its first year alone. The lawmakers say Wisconsin needs rural JOBZ zones to stay competitive.
“If Wisconsin doesn’t move forward with a competitive JOBZ program, other states like Minnesota will continue stealing our jobs as a result of a more competitive business tax climate,” said Suder. “I want to thank Sen. Brown for making job creation in rural Wisconsin a priority with today’s passage of our Rural JOBZ bill in his committee.”
Rep. Suder and Sen. Zien’s ‘Rural JOBZ Act’ will create 10 Rural Job Opportunity Business Zones in underdeveloped areas across the state. Businesses that relocate or expand to these community-based zones will be provided state tax credits for a multitude of state and local taxes. Under the lawmaker’s proposal, businesses that open, relocate, or expand their operations in one of the Rural Jobs Districts will receive refundable tax credits from: corporate franchise taxes; income taxes for operators or investors; capital gains taxes; sales taxes on goods and services used in the zone (if they are purchased from other businesses within the zone); and property tax on improvement projects. The businesses will also be able to receive further tax benefits based on the number of high-paying jobs they create. Suder and Zien highlighted a unique benefit contained in their JOBZ Act which will provide tax incentives for job training and employee improvement programs. They believe this provision will help move Wisconsin forward in the business recruiting battle with other states who are offering similar business development programs.
“The Rural JOBZ Act will help prevent other states from luring our businesses away and will make Wisconsin more competitive for companies looking to expand or relocate,” Zien stated. “Our bill also creates tax incentives to reward job training initiatives which are desperately needed throughout rural Wisconsin.”
Businesses have to meet several criteria before they will be eligible to take part in the tax credit program. Suder said qualified businesses will include those that already have existing operations in the zone, new business start-ups, and businesses that relocate to the zone from other states and countries. According to Suder, state businesses can relocate to the new zones but they will be required to increase their current employment by at least 10% in the first year.
“Our neighboring states have already lured hundreds of job opportunities away from Wisconsin,” said Brown. “The Rural JOBZ Act will stop border jumping and I look forward to working with Sen. Zien and Rep. Suder to pass this important business growth initiative in the Senate.”
For more information on the Suder/Zien “Rural JOBZ Act” please feel free to contact Rep. Suder at 1-608-267-0280 or Sen. Zien at 1-608-266-7511.
