Enterprise Development Zones

The Enterprise Development Zone (EDZ) program provides tax incentives to new or expanding businesses whose projects will affect distressed areas.

Based on the economic impact of a proposed business project, the Department of Commerce may designate a site-specific Enterprise Development Zone. The maximum amount of credits per zone is $3 million. Zones can exist for up to seven years. The Department can vary zone benefits to encourage projects in areas of high distress.

In order to participate in the program, a business should work with one of Commerce's Area Development Managers and complete a Prospect Data Sheet to submit to the Department.

Projects must affect distressed areas suffering from at least some of the following: High unemployment, low incomes, declining population, declining property values, plant closings/layoffs and high numbers of people on public assistance.

The Department will determine if a project is eligible for an Enterprise Development Zone designation based on information about the economic impact of the project, the prospective site and the distress of the area.

Businesses can earn income tax credits by creating new, full-time jobs filled by Wisconsin residents and by conducting environmental remediation on a Brownfield site.

Program Benefits
Development Zone tax credits include:

 A non-refundable jobs credit for new, full-time jobs. Approximately one-fourth of the new employees hired to fill these jobs must come from one of Wisconsin's Target Groups.

 The actual amount of job credits is dependent upon wages and benefits.

 Starting wages for new positions must be at least $9.75 per hour.

 Full-time job means regular, non-seasonal and scheduled to work at least 2,080 hours per year.

 A non-refundable environmental remediation credit of 50% of all investigation and remediation costs affected by environmental pollution in a Brownfield, defined as an industrial or commercial facility, the expansion or redevelopment of which is complicated by environmental contamination.

 At least 25% of all credits allocated must be for creating full-time jobs.

 All tax credits have a carry-forward provision for up to 15 years.