PROGRAMS & ACTIVITIES

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Improve the Competitiveness and Profitability of Existing Businesses

The JCEDC does this using such strategies as the Technology Zone Tax Credit Program, of which Dennis is a board member. This program is a tax credit program designed to stimulate specific technology based business to expand, locate or develop business in the capital ideas technology zone.

On July 1, 2002, the State of Wisconsin designated the counties of Dane, Jefferson, and Rock, and the City of Whitewater as the Capital Ideas Technology Zone.  Under this designation, the Technology Zone has $5 million in tax credits available to provide to new and expanding high technology businesses in the region.  The credit is taken only against Wisconsin income taxes with no credit for federal taxes. Generally the maximum amount of state tax credits available to any business is $150,000, but may be higher if warranted.  The level of credits available to any business will depend on the wage levels paid and the amount of new investment made by the company.

The Technology Zone will also consider the nature of the technology relative to the objectives of the Zone and how these objectives will be met or enhanced. The Department of Commerce defines these businesses as those companies

"primarily engaged in the activities of research, development or manufacture of advanced products or materials used in factory automation, biotechnology, chemicals, computer hardware/software, defense, energy, environmental, manufacturing equipment, medical, pharmaceuticals, photonics, subassemblies and components, test/measurement, telecommunications and transportation"

or

"…a knowledge-based business that utilizes advanced technology production processes, systems, or equipment."

The Wisconsin Department of Commerce will certify businesses for tax credits based on a company’s ability to create jobs and investment and attract related businesses. This is in addition to such other requirements such as the business plan supports the investment and that the plan is realistic in terms of success. Some additional criteria include the business be a new or expanding high-technology firm, the technology zone recommend certification to the Department of Commerce, and the certification is for three years, with an option to extend for two additional years.