Change Font Size: [+] [-]

Governor Signs Chippewa Valley Legislators’ Job Creation Legislation

Monday, May 10, 2010

CORE Jobs Act, Enterprise Zone Expansion Bill and the Small Business Capital Access Bill Signed into Law

MADISON – A series of job creation and economic development bills championed by Chippewa Valley legislators were signed into law by the Governor today during a ceremony in Green Bay. Among the bills signed were; SB 409 - the CORE Jobs Act, AB 768 - authorizing the creation of two new Enterprise Zones, and AB 532 - the Small Business Capital Access Bill.

The CORE (Connecting Opportunities Research and Entrepreneurship) Jobs Act (Senate Bill 409) includes an expansion of Accelerate Wisconsin, the program which provides tax credits for angel and venture capital investment and increased funding for the Wisconsin Development Fund, which helps start-up and expanding businesses through grant programs. In addition, the proposal includes a plan to provide tax incentives for businesses that help pay their workers’ tuition for skills that help a business improve its products and systems and be more competitive. It also supports public-private research partnerships between small businesses and UW campuses like Eau Claire and Stout.

“The CORE Jobs Act is a great example of this legislature’s commitment to job creation and economic development this session,” said Senator Pat Kreitlow, a co-author of SB 409. “We make the most of limited resources by investing them in job creation programs that have worked here the Chippewa Valley and will help the private sector create jobs right away. That’s why CORE has had such broad, bi-partisan support and why we’re so excited to see the bill signed into law today.”

Assembly Bill 768 authorizes the Department of Commerce to designate two additional Enterprise Zones. Commerce works directly with a community and the interested business to determine if they are eligible for an Enterprise Zone. Eligible businesses in a zone can claim refundable tax credits for jobs retained, jobs created, job training and capital investment. The business is required to meet certain job creation and capital investment benchmarks to remain eligible for the tax credits. For example, a business must increase personnel by at least 10% and maintain that level to be eligible for the jobs tax credit and must expand their operations by at least 10% for their gross revenues to be eligible for the capital investment tax credit. Commerce currently is authorized to designate ten zones, which can last up to twelve years.

“The Enterprise Zone Program has been extremely successful at creating and protecting thousands of jobs in Wisconsin,” said Rep. Kristen Dexter (D-Eau Claire), a leading sponsor of AB 768. “The program has been so successful that the original authorization for ten zones could be exhausted over the next few months, potentially limiting access to the program for Chippewa Valley businesses who may be interested. This bill protects against that and keeps the program available during these difficult times.”

The Small Business Capital Access Bill (Assembly Bill 532) directs the Department of Commerce to award grants for the purpose of funding capital access programs to encourage lending to small and medium-sized businesses, and to local nonprofit agencies. Grants may only be given to recipients with an existing portfolio of revolving loans to small businesses, and whose primary purpose is promoting community development in a limited geographic area of Wisconsin experiencing economic distress.

“My family’s small business has been operating in the Chippewa Valley for over 55 years, and I understand the challenges and opportunities for small businesses in our region and the importance of protecting small business and supporting entrepreneurs,” Rep. Jeff Smith (D-Eau Claire) said. “Small businesses are a critical force in our local and state economy. They employ just over half of private sector employees nationwide and have generated 64 percent of new jobs over the past 15 years. With the enactment of the Small Business Capital Access Bill and other jobs bills that bolster business and workers, we are positioning the Chippewa Valley for a robust economic recovery.”