LRBs0564/1
JK&CTS:lmk:rs
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 1055
February 23, 2006 - Offered by
Committee on Insurance.
AB1055-ASA1,1,5
1An Act to amend 73.03 (35), 76.635 (title), 76.67 (2), 560.075 (1), 560.70 (6),
2560.70 (7) (a), 560.70 (7) (b), 560.70 (7) (c), 560.75 (8), 560.785 (1) (d), 560.785
3(1) (h), 560.795 (3) (d), 560.795 (5) (d), 560.797 (4) (d), 560.797 (4) (g) and
4560.798 (4) (b); and
to create 76.636 of the statutes;
relating to: creating a
5development zone credit for the license fees paid by certain insurers.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1055-ASA1,2,27
73.03
(35) To deny a portion of a credit claimed under s. 71.07 (2dd), (2de), (2di),
8(2dj), (2dL), (2dm), (2dr), (2ds), or (2dx), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
9(1ds), (1dx), or (4) (am),
or 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx),
10or (4) (am)
, or 76.636 if granting the full amount claimed would violate a requirement
11under s. 560.785 or would bring the total of the credits granted to that claimant under
1all of those subsections over the limit for that claimant under s. 560.768, 560.795 (2)
2(b), or 560.797 (5) (b).
AB1055-ASA1,2,4
476.635 (title)
Credit for investment in certified capital companies.
AB1055-ASA1,2,7
676.636 Credit for certain development zone activities. (1) Definitions. 7In this section:
AB1055-ASA1,2,98
(a) "Brownfield" means an industrial or commercial facility in which expansion
9or redevelopment is complicated by environmental contamination.
AB1055-ASA1,2,1210
(b) "Development zone" means a development zone under s. 560.70, a
11development opportunity zone under s. 560.795, an enterprise development zone
12under s. 560.797, or an agricultural development zone under s. 560.798.
AB1055-ASA1,2,1813
(c) "Environmental remediation" means removal or containment of
14environmental pollution, as defined in s. 299.01 (4), and restoration of soil or
15groundwater that is affected by environmental pollution, as defined in s. 299.01 (4),
16in a brownfield if that removal, containment, or restoration fulfills the requirement
17under s. 71.47 (1de) (a) 1., unless an investigation of the property determines that
18remediation is required and that remediation is not undertaken.
AB1055-ASA1,2,2419
(d) "Full-time job" means a regular, nonseasonal, full-time position in which
20an individual, as a condition of employment, is required to work at least 2,080 hours
21per year, including paid leave and holidays, and for which the individual receives pay
22that is equal to at least 150 percent of the federal minimum wage and receives
23benefits that are not required by federal or state law. "Full-time job" does not include
24initial training before an employment position begins.
AB1055-ASA1,3,12
1(e) "Member of a targeted group" means a person who resides in an area
2designated by the federal government as an economic revitalization area, a person
3who is employed in an unsubsidized job but meets the eligibility requirements under
4s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is
5employed in a trial job, as defined in s. 49.141 (1) (n), a person who is eligible for child
6care assistance under s. 49.155, a person who is a vocational rehabilitation referral,
7an economically disadvantaged youth, an economically disadvantaged veteran, a
8supplemental security income recipient, a general assistance recipient, an
9economically disadvantaged ex-convict, a qualified summer youth employee, as
10defined in
26 USC 51 (d) (7), a dislocated worker, as defined in
29 USC 2801 (9), or
11a food stamp recipient, if the person has been certified in the manner under s. 71.47
12(1dj) (am) 3. by a designated local agency, as defined in s. 71.47 (1dj) (am) 2.
AB1055-ASA1,3,17
13(2) Credits. Except as provided in s. 73.03 (35), and subject to s. 560.785, for
14any taxable year for which an insurer is entitled under s. 560.795 (3) to claim tax
15benefits or certified under s. 560.765 (3), 560.797 (4) or 560.798 (3), the insurer may
16claim as a credit against the fees due under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the
17following amounts:
AB1055-ASA1,3,1918
(a) Fifty percent of the amount expended for environmental remediation in a
19development zone.
AB1055-ASA1,3,2320
(b) The amount determined by multiplying the amount determined under s.
21560.785 (1) (b) by the number of full-time jobs created in a development zone and
22filled by a member of a targeted group and by then subtracting the subsidies paid
23under s. 49.147 (3) (a) for those jobs.
AB1055-ASA1,4,224
(c) The amount determined by multiplying the amount determined under s.
25560.785 (1) (c) by the number of full-time jobs created in a development zone and not
1filled by a member of a targeted group and by then subtracting the subsidies paid
2under s. 49.147 (3) (a) for those jobs.
AB1055-ASA1,4,83
(d) The amount determined by multiplying the amount determined under s.
4560.785 (1) (bm) by the number of full-time jobs retained, as provided in the rules
5under s. 560.785, excluding jobs for which a credit has been claimed under s. 71.47
6(1dj), in an enterprise development zone under s. 560.797 and for which significant
7capital investment was made and by then subtracting the subsidies paid under s.
849.147 (3) (a) for those jobs.
AB1055-ASA1,4,139
(e) The amount determined by multiplying the amount determined under s.
10560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules
11under s. 560.785, excluding jobs for which a credit has been claimed under s. 71.47
12(1dj), in a development zone and not filled by a member of a targeted group and by
13then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
AB1055-ASA1,4,19
14(3) Carry-forward. If the credit under sub. (2) is not entirely offset against the
15fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
16may be carried forward and credited against those fees for the following 15 years to
17the extent that it is not offset by those fees otherwise due in all the years between
18the year in which the expense was made and the year in which the carry-forward
19credit is claimed.
AB1055-ASA1,5,4
20(4) Credit precluded. If the certification of a person for tax benefits under s.
21560.765 (3), 560.797 (4), or 560.798 (3) is revoked, or if the person becomes ineligible
22for tax benefits under s. 560.795 (3), that person may not claim credits under this
23section for the taxable year that includes the day on which the certification is
24revoked; the taxable year that includes the day on which the person becomes
25ineligible for tax benefits; or succeeding taxable years and that person may not carry
1over unused credits from previous years to offset the fees under s. 76.60, 76.63, 76.65,
276.66, or 76.67 for the taxable year that includes the day on which certification is
3revoked; the taxable year that includes the day on which the person becomes
4ineligible for tax benefits; or succeeding taxable years.
AB1055-ASA1,5,10
5(5) Carry-over precluded. If a person who is entitled under s. 560.795 (3) to
6claim tax benefits or certified under s. 560.765 (3), 560.797 (4), or 560.798 (3) for tax
7benefits ceases business operations in the development zone during any of the
8taxable years that that zone exists, that person may not carry over to any taxable
9year following the year during which operations cease any unused credits from the
10taxable year during which operations cease or from previous taxable years.
AB1055-ASA1,5,14
11(6) Administration. Any insurer who claims a credit under sub. (2) shall
12include with the insurer's annual return under s. 76.64 a copy of its certification for
13tax benefits and a copy of its verification of expenses from the department of
14commerce.
AB1055-ASA1,6,217
76.67
(2) If any domestic insurer is licensed to transact insurance business in
18another state, this state may not require similar insurers domiciled in that other
19state to pay taxes greater in the aggregate than the aggregate amount of taxes that
20a domestic insurer is required to pay to that other state for the same year less the
21credits under ss. 76.635
, 76.636, and 76.655, except that the amount imposed shall
22not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if
23the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under
24s. 76.62, less offsets allowed under s. 646.51 (7) or under ss. 76.635
, 76.636, and
176.655 against that total, and except that the amount imposed shall not be less than
2the amount due under s. 601.93.
AB1055-ASA1,6,85
560.075
(1) In this section, "tax benefits" means the credits under ss. 71.07
6(2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3t), 71.28 (1dd),
7(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t),
and 71.47 (1dd), (1de), (1di),
8(1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t)
, and 76.636.
AB1055-ASA1,6,1210
560.70
(6) "Target population" means persons who are members of targeted
11groups for the purposes of the credit under ss. 71.07 (2dx), 71.28 (1dx)
and, 71.47
12(1dx)
, and 76.636.
AB1055-ASA1,6,1614
560.70
(7) (a) Except as provided in pars. (b) and (c), "tax benefits" means the
15development zones credit under ss. 71.07 (2dx), 71.28 (1dx),
and 71.47 (1dx)
, and
1676.636.
AB1055-ASA1,6,2318
560.70
(7) (b) In s. 560.795, "tax benefits" means the development zones
19investment credit under ss. 71.07 (2di), 71.28 (1di), and 71.47 (1di) and the
20development zones credit under ss. 71.07 (2dx), 71.28 (1dx),
and 71.47 (1dx)
, and
2176.636. With respect to the development opportunity zones under s. 560.795 (1) (e)
22and (f), "tax benefits" also means the development zones capital investment credit
23under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).
AB1055-ASA1,7,4
1560.70
(7) (c) In s. 560.798, "tax benefits" means the development zones capital
2investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm) and the
3development zones credits under ss. 71.07 (2dx), 71.28 (1dx),
and 71.47 (1dx)
, and
476.636.
AB1055-ASA1,7,76
560.75
(8) Annually verify information submitted to the department under s.
771.07 (2dx), 71.28 (1dx)
or, 71.47 (1dx)
, or 76.636.
AB1055-ASA1,7,129
560.785
(1) (d) Except for a person claiming tax benefits only for environmental
10remediation under s. 71.07 (2dx) (b) 1., 71.28 (1dx) (b) 1.
or, 71.47 (1dx) (b) 1.
, or
1176.636, require at least 25% of the tax benefits claimed by a person to be based on
12creating or retaining full-time jobs.
AB1055-ASA1,7,1614
560.785
(1) (h) Provide that a person's eligibility to claim tax benefits for
15environmental remediation under s. 71.07 (2dx) (b) 1., 71.28 (1dx) (b) 1.
or, 71.47
16(1dx) (b) 1.
, or 76.636 is not based on creating or retaining jobs.
AB1055-ASA1,7,2018
560.795
(3) (d) The department annually shall verify information submitted
19to the department under s. 71.07 (2di), (2dm), or (2dx), 71.28 (1di), (1dm), or (1dx),
20or 71.47 (1di), (1dm), or (1dx)
, or 76.636.
AB1055-ASA1,7,2422
560.795
(5) (d) The department annually shall verify information submitted
23to the department under s. 71.07 (2dm) or (2dx), 71.28 (1dm) or (1dx),
or 71.47 (1dm)
24or (1dx)
, or s. 76.636.
