CDZ - information Community Development Zone

If your business is located in Marinette County or you anticipate moving into Marinette County, you may be eligible for tax credits that you can apply against your Wisconsin income tax liability. These credits are based on the number of new jobs that you create, the wage level and the benefit package that you offer. In addition, you may be eligible for a credit equal to 50% of all your environmental remediation costs.

1. Can you tell me exactly how much these tax credits will be? You will be initially allocated tax credits based on the anticipated rate of pay for the positions you plan to create.  The actual credits that you will be able to apply against your tax liability are dependent on several factors, including the number of jobs you create and their corresponding wages and benefits. FOR INSTANCE... The starting average wage floor for CDZ consideration is $9.75/hour (post-training wage). The credits are allocated based on a three tier system, considering other underwriting factors of course when making a final determination. The tiers are as follows: Tier 1 $9.75 - $12.99 credit of $3,000.00 per job Tier 2 $13.00 - $16.24 credit of $5,000.00 per job Tier 3 $16.25> credit of $6,500 per job If you hire 10 workers at $10.00 per hour ( up to $3,000 credit per worker) 5 workers at $13.00 per hour ( up to $5,000 credit per worker) and 2 workers at $16.25 per hour ( up to $6,500 credit per worker ), you could be allocated up to $68,000 in job credits. Of course, your final tax credits will be based on your firm's performance in the terms of number of jobs created, wages/benefits and the number of targeted employees hired. 2. Are there any restrictions on who I can hire? Only new, full time jobs (scheduled to work 2,080 hours a year) that are filled by Wisconsin residents are eligible for tax credits.  Program guidelines state that at least one-third of the job tax credits shall be based on creating jobs for members of specific target groups.  Since the target group credits are slightly higher than the credits for non-target employees, a good rule-of-thumb is that 1 out of every 4 new employees should come from a target group. 3. Who are members of these eligible target groups? Target groups include dislocated and laid-off workers, referrals from vocational rehabilitation programs, youths from low-income families, W-2 participants, Vietnam-era veterans, and ex-felons. For detailed definitions of the various target groups contact the Marinette County Development Zone Coordinator, Don Clewley, at 715-732-0230, or FAX to 715-735-6682, 4. How do I find target group members to hire? Local employment and training service providers and Development Zone Job Specialists with the Department of Commerce can help you locate qualified employees who are also members of eligible target groups. The Wisconsin Job Service/Department of Workforce Development must certify eligible targeted employees. • Your business must pay a $50 fee for each target group member that is certified. • Your business will not be charged for potential target group members who are not certified. 5. The economy is so good that I can't find enough targeted employees to meet the 1-out-of-4 provision.  What do I do? While hiring targeted workers is a major goal of the Community Development Zone program, we recognize that factors outside an employer's control can make it difficult to reach the 1-in-4 level. When this happens, the Department may grant a waiver if you can show that you've made a good-faith effort to identify, recruit and hire members of target groups. 6. My new business won't generate much tax liability in the next few years.  Why should I consider your program? While your current tax situation may prevent you from initially utilizing the credits, you actually have 15 years in which to use all of your tax credits. 7. How large does my business have to be to qualify for your tax credit program? Participating businesses come in all sizes. Many Community Development Zone Program participants have absolutely no employees when they apply to the program. At the other end of the scale, we are working with one business that reported 1,400 workers when it filed its Community Development Zone application. 8. It sounds like my business could benefit from your program. How do I get started? The first step is to contact your local Community Development Zone coordinator.  In Marinette County, contact Don Clewley, at 715-732-0230, or FAX to 715-735-6682, or E-Mail him. • The coordinator will meet with you to review your project, evaluate your need for tax benefits and to answer any questions you may have. • The coordinator will assist you in applying for certification in the program through the Department of Commerce. • The coordinator's recommendation will be sent to the Department of Commerce for review. The Department makes the final decision on the certification request and on the actual amount of tax credits you will be allocated 9. Assuming that I meet or surpass my job creation projections, when can I start collecting my tax credits? The Department of Commerce may distribute the tax benefits you claim over multiple tax years, based on the job creation phases of the project. The Department normally distributes 25% of the benefits in the first year and another 25% in the second year. The final 50% of the credits is usually held until the third year to ensure that you reach your projections for job creation and target group hires. If the actual number of jobs you create does not meet the original projections, adjustments to  your total tax credit package will be made during the third year. • Your business must be certified in the Community Development Zone program for at least six months before you are eligible to collect your tax credits. 10. I don't like jumping over a lot of bureaucratic hurdles.  How much work will I have to do to stay in compliance with this program once I'm a certified participant? We ask each business to complete and submit a Development Zone Annual Project Report. This includes a summary of your business activities for the past fiscal year, estimate of your tax liability, information on new investments, jobs created and anticipated hiring/expansion plans for the coming year. We also need a copy of your fourth quarter payroll showing each employee's hours worked and earnings for the quarter, year-to-date earnings and state withholding information. 11. The program sounds pretty straightforward, but where do we go if our executives, accountants or human resource people have any questions? Start with a call to your local Community Development Zone coordinator.  In Marinette County, contact Don Clewley, at 715-732-0230, or FAX to 715-735-6682, or E-Mail him. This is the person who is closest to your business and should be able to provide you with a quick answer. If the coordinator is feels more precise information is needed, he can contact the Bureau of Enterprise Development staff in Madison for you, or you can contact the Bureau staff directly yourself.

In 1928, twenty (20) wood using industries & manufacturer in Marinette County employed 2293 men, paid $3,245,870 in wages, produced products valued a over $13,000,000 million dollars and paid 1/5 of the county taxes annually.

If your questions are not answered contact: Don Clewley, Executive Director Marinette County Association for Business & Industry 601 Marinette Ave. Marinette, WI 54143 Phone: 715-732-0230 E-Mail: mcabi@czwireless.net Fax: 715-735-6682

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Questions? contact MCABI Don Clewley, Executive Director Marinette County Association for Business & Industry

Contact Information / Additional Resources. Wisconsin Department of Commerce, Division of Community Development Pam Christenson, Administrator 608-267-9384 or E-Mail Peggy Burke, Community Development Zone Manager 608-266-3751 or E-Mail Todd Jensen, Development Zone Specialist 608-266-3074 or E-Mail Steve Sabatke, Industrial Revenue Bonds 608-267-0762 or E-Mail Another source of information is the Department of Commerce Home Page. Wisconsin Department of Commerce P.O. Box 7970 Madison, Wisconsin  53707 (608)264-8777 TDD# (608)264-8777