LRB-4295/1
JK:amn
2015 - 2016 LEGISLATURE
January 20, 2016 - Introduced by Representatives Neylon, Ballweg, Kitchens, E.
Brooks
and Petryk, cosponsored by Senator Darling. Referred to Committee
on Jobs and the Economy.
AB757,1,5 1An Act to renumber 71.07 (4k) (e), 71.28 (4) (g) and 71.47 (4) (g); and to create
271.07 (4k) (a) 1m., 71.07 (4k) (b) 7., 71.07 (4k) (e) 2., 71.28 (4) (ab) 1m., 71.28 (4)
3(ad) 7., 71.28 (4) (g) 2., 71.47 (4) (ab) 1m., 71.47 (4) (ad) 7. and 71.47 (4) (g) 2.
4of the statutes; relating to: an industry cluster research and development tax
5credit.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit equal to 25 percent of a
taxpayer's qualified research expenses for research conducted in this state, if the
research is approved by an industry cluster partnership. An industry cluster
partnership is, generally, a nonprofit organization that primarily assists in
developing and supporting a regional concentration of private sector businesses that
share a common interest in fostering industry-specific research and development.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB757,1 6Section 1. 71.07 (4k) (a) 1m. of the statutes is created to read:
AB757,2,2
171.07 (4k) (a) 1m. "Industry cluster partnership" means a nonprofit
2organization that satisfies all of the following conditions:
AB757,2,63 a. Its primary purpose is to assist in developing and supporting a regional
4concentration of private sector businesses in this state that share a common interest
5in fostering industry-specific research and development, worker skills training, and
6market development.
AB757,2,107 b. It collaborates with institutions of higher education, including technical
8colleges, in this state for the purpose of transferring to the private sector, and
9commercializing, technology related to specific industries and developed at those
10institutions.
AB757,2,1411 c. It is governed by a board of directors with members from the public and
12private sectors who represent the industries and interests necessary to ensure a
13collaborative, strategic approach to supporting economic development, job growth,
14and the development of marketable products and services in a specific industry.
AB757,2,1615 d. It is a participant in the national science foundation's industry and
16university cooperative research center program.
AB757,2 17Section 2. 71.07 (4k) (b) 7. of the statutes is created to read:
AB757,3,518 71.07 (4k) (b) 7. For taxable years beginning after December 31, 2015, an
19individual, a partner of a partnership, a shareholder of a tax-option corporation, or
20a member of a limited liability company may claim a credit against the tax imposed
21under s. 71.02 or 71.08, as allocated under par. (d), an amount equal to 25 percent
22of the individual's, partnership's, tax-option corporation's, or limited liability
23company's qualified research expenses, as defined in section 41 of the Internal
24Revenue Code, incurred for research conducted in this state for the taxable year, if
25the research is approved by an industry cluster partnership. For purposes of

1determining the amount of a person's qualified research expenses under this
2subdivision, the person may elect the alternative computation under section 41 (c)
3(4) of the Internal Revenue Code and that election applies until the department
4permits its revocation. Section 41 (h) of the Internal Revenue Code does not apply
5to the credit under this subdivision.
AB757,3 6Section 3. 71.07 (4k) (e) of the statutes is renumbered 71.07 (4k) (e) 1.
AB757,4 7Section 4. 71.07 (4k) (e) 2. of the statutes is created to read:
AB757,3,108 71.07 (4k) (e) 2. A person who files a claim under par. (b) 7. shall include with
9the person's return a copy of the person's approval from the industry cluster
10partnership.
AB757,5 11Section 5. 71.28 (4) (ab) 1m. of the statutes is created to read:
AB757,3,1312 71.28 (4) (ab) 1m. "Industry cluster partnership" means a nonprofit
13organization that satisfies all of the following conditions:
AB757,3,1714 a. Its primary purpose is to assist in developing and supporting a regional
15concentration of private sector businesses in this state that share a common interest
16in fostering industry-specific research and development, worker skills training, and
17market development.
AB757,3,2118 b. It collaborates with institutions of higher education, including technical
19colleges, in this state for the purpose of transferring to the private sector, and
20commercializing, technology related to specific industries and developed at those
21institutions.
AB757,3,2522 c. It is governed by a board of directors with members from the public and
23private sectors who represent the industries and interests necessary to ensure a
24collaborative, strategic approach to supporting economic development, job growth,
25and the development of marketable products and services in a specific industry.
AB757,4,2
1d. It is a participant in the national science foundation's industry and
2university cooperative research center program.
AB757,6 3Section 6. 71.28 (4) (ad) 7. of the statutes is created to read:
AB757,4,134 71.28 (4) (ad) 7. For taxable years beginning after December 31, 2015, a
5corporation may claim a credit against the tax imposed under s. 71.23 an amount
6equal to 25 percent of the corporation's qualified research expenses, as defined in
7section 41 of the Internal Revenue Code, incurred for research conducted in this state
8for the taxable year, if the research is approved by an industry cluster partnership.
9For purposes of determining the amount of a corporation's qualified research
10expenses under this subdivision, the corporation may elect the alternative
11computation under section 41 (c) (4) of the Internal Revenue Code and that election
12applies until the department permits its revocation. Section 41 (h) of the Internal
13Revenue Code does not apply to the credit under this subdivision.
AB757,7 14Section 7. 71.28 (4) (g) of the statutes is renumbered 71.28 (4) (g) 1.
AB757,8 15Section 8. 71.28 (4) (g) 2. of the statutes is created to read:
AB757,4,1816 71.28 (4) (g) 2. A corporation that files a claim under par. (ad) 7. shall include
17with the corporation's return a copy of the person's approval from the industry
18cluster partnership.
AB757,9 19Section 9. 71.47 (4) (ab) 1m. of the statutes is created to read:
AB757,4,2120 71.47 (4) (ab) 1m. "Industry cluster partnership" means a nonprofit
21organization that satisfies all of the following conditions:
AB757,4,2522 a. Its primary purpose is to assist in developing and supporting a regional
23concentration of private sector businesses in this state that share a common interest
24in fostering industry-specific research and development, worker skills training, and
25market development.
AB757,5,4
1b. It collaborates with institutions of higher education, including technical
2colleges, in this state for the purpose of transferring to the private sector, and
3commercializing, technology related to specific industries and developed at those
4institutions.
AB757,5,85 c. It is governed by a board of directors with members from the public and
6private sectors who represent the industries and interests necessary to ensure a
7collaborative, strategic approach to supporting economic development, job growth,
8and the development of marketable products and services in a specific industry.
AB757,5,109 d. It is a participant in the national science foundation's industry and
10university cooperative research center program.
AB757,10 11Section 10. 71.47 (4) (ad) 7. of the statutes is created to read:
AB757,5,2112 71.47 (4) (ad) 7. For taxable years beginning after December 31, 2015, a
13corporation may claim a credit against the tax imposed under s. 71.43 an amount
14equal to 25 percent of the corporation's qualified research expenses, as defined in
15section 41 of the Internal Revenue Code, incurred for research conducted in this state
16for the taxable year, if the research is approved by an industry cluster partnership.
17For purposes of determining the amount of a corporation's qualified research
18expenses under this subdivision, the corporation may elect the alternative
19computation under section 41 (c) (4) of the Internal Revenue Code and that election
20applies until the department permits its revocation. Section 41 (h) of the Internal
21Revenue Code does not apply to the credit under this subdivision.
AB757,11 22Section 11. 71.47 (4) (g) of the statutes is renumbered 71.47 (4) (g) 1.
AB757,12 23Section 12. 71.47 (4) (g) 2. of the statutes is created to read:
AB757,6,3
171.47 (4) (g) 2. A corporation that files a claim under par. (ad) 7. shall include
2with the corporation's return a copy of the person's approval from the industry
3cluster partnership.
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