WEDA Wire – December 21, 2023

Merry Christmas! As the holiday season unfolds, I extend warm wishes to you and your loved ones, hoping it brings peace and joy into your lives. Amidst the hustle and bustle, take a moment to express gratitude for the blessings surrounding you – a sentiment I hold dear at this time of year.

I want to express my heartfelt thanks to each WEDA member for your unwavering support and dedication to our shared cause. Your commitment to community development in Wisconsin is truly commendable, and it inspires us at WEDA to continue our mission.

As we celebrate the holidays and close out the year, I want to bring to your attention some exciting WEDA news and outline the numerous benefits of WEDA membership:

• Exciting Member Benefits in 2024: WEDA Academy and WEDAConnect
  • First, I want to thank Kathy Heady for her exceptional management of our Academy program over the last serval years. She did a great job, and we will certainly miss her. Kathy’s exceptional career of service to both the economic development industry and WEDA members is immeasurable!
  • In recognition of the importance of professional development, we are excited to introduce a new exclusive member benefit structure for the Academy. Members can now access seminars and webinars for free! The revamped Academy will cover foundational economic development topics and cutting-edge subjects such as cybersecurity, AI and GIS, immigration, talent attraction strategies, rural placemaking, entrepreneurship, and more. Your input is crucial – let us know which topics matter most to your communities.
  • We’re also pleased to announce WEDAConnect, a new exclusive member benefit. It will be a place of belonging for members to connect, exchange ideas, and share best practices in economic development. It will be THE place where members go to
  •  get and give answers. More details coming soon. Stay tuned for more details…
• Join WEDA Today: Unlock Member Discounts and Benefits – If you’re not a member yet, consider joining WEDA now. Membership offers significant discounts on events and programs, providing more value than the cost of membership itself. Don’t miss out on this opportunity to network and enhance your professional development.
• 2024 Wisconsin Basic Economic Development Course – The 2024 BEDC will be held May 6 – 9, 2024 in Eau Claire, WI at the Chippewa Valley Technical College.  Who Should Attend? Economic developers, public officials, young professionals in economic development or related industries, ACRE alumni, members of Wisconsin’s EDB Coalition, and others who want an intensive “basic” overview of economic development concepts, methods, strategies, and practices.
• Scholarships Available: Support for Financial Need – If financial constraints prevent you from attending our events, reach out to us. Generous donors aligned with our values support scholarships. Contact me at mperry@weda.org to request consideration based on need.
• Charting Wisconsin’s Horizon: Emerging Trends in Economic Development – I can’t wait to see all of you Jan 31 -Feb 2^nd in Wisconsin Dells at the Kalahari for the 2024 WEDA Governor’s Conference on Economic Development. Join us for our first annual community service project benefitting Hope House of South Central Wisconsin. Please sit in on the WEDA CRA Network Access to Capital through Special Purpose Credit Programs Seminar, delve into the dynamic world of energy at our Energizing the Future-Exploring Key Trends in Energy Academy, and then kick back at the USBank Opening Reception.  Governor’s Conference Registration and Agenda
  

I hope you are looking at a strong close to 2023 and that the holidays bring you moments of quiet magic and joy! Now let it snow!

By WEDC Secretary and CEO Missy Hughes

In October, President Joe Biden and the U.S. Economic Development Agency (EDA) designated Wisconsin as a Regional Technology Hub in the field of personalized medicine and biohealth technology.

Less than a month later, Wisconsin has seen the first benefits.

On Nov. 10, Microsoft announced its plans to invest billions to expand its data center footprint in Mount Pleasant.

The Regional Technology Hub designation was one of many reasons the company cited for choosing to expand in Wisconsin.

While Wisconsinites know all about our state’s long history of innovation and discovery and our unmatched workforce, the federal designation is putting the state on the radar of tech companies and entrepreneurs worldwide.

The designation came about through the hard work of the Wisconsin Biohealth Tech Consortium, a group that includes the Wisconsin Economic Development Corporation (WEDC), university, economic development and industry partners.

The designation also came with a $350,000 EDA strategic development grant that is allowing WEDC and its partners in the consortium to move forward with plans that will increase collaboration, speed up discovery and increase prosperity across the state.

Plans for the hub include creating shared data and systems to speed innovation, improving access to capital, working with manufacturers to enhance the supply chain, creating career opportunities and supports so that everyone can share in the benefits.

Meanwhile WEDC is moving forward with its commitment to support the hub and the companies working toward the next big innovation in biohealth. For the first time, WEDC is offering organizations that work with biotech and personalized medicine companies a chance to receive an Entrepreneurship Partner Grant (EPG). EPGs are designed to fund organizations that offer entrepreneurs and startups services such as training, technical assistance, mentors and seed accelerators.

WEDC has pledged $500,000 to be awarded to organizations specifically working with the biotech industry. Grants, which will likely range from $10,000 to $200,000, will be awarded to programs based on factors such as number of entrepreneurs served, cost effectiveness and innovation.

For more information, visit: https://wedc.org/programs-and-resources/entrepreneurship-partner-grant/

Earning the regional tech hub designation means that the state is now competing for up to $75 million in funding under the federal CHIPS and Science Act of 2022.

That funding combined with the Regional Technology Hub designation could supercharge biohealth and personalized medicine research and development in our state. And the industry could serve as a key to Wisconsin’s “good jobs” economy where employers hire and retain a skilled workforce in jobs with benefits and upward mobility.

The benefits for our communities, our economy and our state, however, are way more than financial.

We must realize as we talk about the economic benefits of biotech and personalized medicine the tremendous good that can be done for humanity. The developments that these entrepreneurs and companies are pursuing are cures and treatments that can save lives and enhance quality of life for all of us.

The Regional Technology Hub designation means that Wisconsin is expected to improve medical care for patients – including those who may have been left out by past innovations. Plans call for establishing a Patient Advisory Group to give feedback to researchers and the industry. We will ensure that real patient needs are steering the hub’s direction.

While most of the consortium’s work will be focused on personalized medicine, which includes genomic innovation, advanced imaging, big data analytics, artificial intelligence and more, the federal hub designation and the work of the consortium position Wisconsin with its skilled workforce, advanced manufacturing capabilities and renowned university system as a place where innovative technology companies of all types will want to be.

And that brings us back to Microsoft and its announcement that the company will be investing billions of dollars into expanding its data center footprint in Mount Pleasant.

This is not Microsoft’s first investment in Wisconsin. The company is a valuable partner in TitletownTech, a venture capital firm in Green Bay formed out of the partnership between Microsoft and the Green Bay Packers. That partnership has resulted in startup attraction and development as well as investments in computer science education.

In Microsoft’s announcement of its plans in Mount Pleasant, the company cited Wisconsin as a place where Microsoft intends to invest to develop a focal point for cloud computing.

Microsoft’s announcement is just the first of what I hope will be many investments in Wisconsin and in our future personal and economic health.

Missy Hughes is Secretary and CEO of the Wisconsin Economic Development Corporation, the state’s lead economic development organization.

WEDA’s top legislative priorities include Assembly Bill 627, legislation that would modernize the state’s Business Development Tax Credit, and Assembly Bill 660, which would create a childcare tax credit for businesses that offer childcare benefits for their employees. Late last month, the Assembly Ways and Means Committee held a public hearing on both legislative proposals.

WEDA would like to thank the following three members who traveled to the State Capitol to testify in favor of the legislative proposals on behalf of WEDA: Charlie Walker, Chippewa County Economic Development Corporation; Angel Whitehead, Centergy; and Coleman Peiffer, Alliant Energy.

All three did a tremendous job representing WEDA and impressing on lawmakers the importance of both bills to expand the state’s economic development toolbox and address Wisconsin’s workforce shortage.

Please CLICK HERE to read WEDA’s written testimony on AB 627 and HERE for the testimony on AB 660.

WEDA Legislative Priorities Overview:

The Business Development Tax Credit Modernization Bill (AB 627) would align the BTC with today’s economic realities, making it a more flexible and effective business attraction and retention tool for the state. The BTC modernization bill as initially introduced would make the following changes to the current program:

• Modify tax credit eligibility to emphasize capital expenditures rather than job creation.
• Increase the amount of the tax credit for capital expenditures.
• Provide additional tax benefits for businesses that invest in workforce housing for their employees.
• Provide additional tax benefits for businesses that invest in childcare benefits for their employees.

The bill’s authors have introduced an amendment to the bill to address issues raised by WEDC. The amendment includes a change that would eliminate the tax benefit increase for capital expenditures. WEDA did not support this change, and we hope to address it when the bill is considered by the full Assembly.

The Business Childcare Tax Credit (AB 660) would create a refundable tax credit to incentivize employers to provide childcare benefits for their employees. The bill will help address the lack of access to affordable childcare in Wisconsin, which is an obstacle to strengthening the state’s workforce. The total amount of the credit for eligible businesses would be equal to:

• The amount of capital expenditure made to establish an employee childcare program, not to exceed $100,000 per tax year; and/or
• The amount of expenses incurred in operating an employee childcare program or proving direct payments to a childcare program for an employee’s child, not to exceed $3,000 per participating child of an employee.

Both legislative proposals will be the primary focus at the 2024 WEDA Legislative Day, which will be held on January 24, 2024. We will also be discussing the following legislation with lawmakers part of Legislative Day:

• Wisconsin Manufacturing Automation Grant Bill – This bill would require WEDC to award grants to small- or medium-sized manufacturers headquartered in Wisconsin for the purchase of advanced manufacturing technology hardware and software. Under the proposal:
  • No grant awarded under the bill may exceed 33 percent of the purchase price paid by the manufacturer for the hardware and software or $200,000, whichever is less,
  • The manufacturer is required to have established an advanced technology adoption implementation plan approved by the Wisconsin Center for Manufacturing and Productivity, Inc., that includes the purchase of the hardware and software that is subject to the grant and requires that such hardware and software be utilized in Wisconsin.
  • WEDC must coordinate with the Wisconsin Center for Manufacturing and Productivity to implement the grant program.

Please CLICK HERE to review all of the legislative proposals WEDA is actively lobbying on during the 2023-24 legislative session.