SB461-SSA1,5,1410 (b) Filing claims. Subject to the limitations provided under this subsection and
11s. 560.2065, for investments made after December 31, 2010, a claimant may claim
12as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes,
13the amount of the claimant's qualified equity investment, as certified under s.
14560.2065 (2), multiplied by the following percentage:
SB461-SSA1,5,1615 1. For the taxable year that corresponds to the first credit allowance date, as
16defined under 26 USC 45D (a) (3), zero percent.
SB461-SSA1,5,1917 2. For the taxable years that correspond to the 6 credit allowance dates, as
18defined under 26 USC 45D (a) (3), following the credit allowance date described in
19subd. 1., 3 percent.
SB461-SSA1,6,1320 (c) Limitations. 1. A partnership, limited liability company, or tax-option
21corporation may not claim the credit under this subsection. The partners of a
22partnership, members of a limited liability company, or shareholders in a tax-option
23corporation may claim the credit under this subsection based on eligible costs
24incurred by the partnership, company, or tax-option corporation. The partnership,
25limited liability company, or tax-option corporation shall calculate the amount of the

1credit which may be claimed by each partner, member, or shareholder and shall
2provide that information to the partner, member, or shareholder. For shareholders
3of a tax-option corporation, the credit may be allocated in proportion to the
4ownership interest of each shareholder. Credits computed by a partnership or
5limited liability company may be claimed in proportion to the ownership interests
6of the partners or members or allocated to partners or members as provided in a
7written agreement among the partners or members that is entered into no later than
8the last day of the taxable year of the partnership or limited liability company, for
9which the credit is claimed. Any partner or member who claims the credit as
10provided under this paragraph shall attach a copy of the agreement, if applicable, to
11the tax return on which the credit is claimed. A person claiming the credit as
12provided under this paragraph is solely responsible for any tax liability arising from
13a dispute with the department of revenue related to claiming the credit.
SB461-SSA1,6,2014 2. Any claimant who transfers an interest in a partnership, limited liability
15company, or tax-option corporation after the first credit allowance date, as defined
16under 26 USC 45D (b), but before the final credit allowance date for the credit
17allowed under this subsection shall be entitled to claim the credit for the remaining
18credit allowance dates by filing with the claimant's return a written agreement
19between the claimant and the transferee of the interest that specifies that the
20claimant, not the transferee, is the person entitled to claim the credit.
SB461-SSA1,6,2321 3. The Wisconsin adjusted basis of any investment for which a credit is claimed
22under par. (b) shall be reduced by the amount of the credit that is offset against
23Wisconsin income taxes.
SB461-SSA1,6,2524 4. The limitation under section 469 (a) (1) (B) of the Internal Revenue Code does
25not apply to the credit under this subsection.
SB461-SSA1,7,2
15. A claimant may claim the credit under this subsection regardless of whether
2the claimant claims a credit under 26 USC 45D.
SB461-SSA1,7,43 (d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
SB461-SSA1,7,95 2. The department of revenue may promulgate rules regarding the recapture
6of tax credits claimed under this subsection, consistent with 26 USC 45D (g). If a
7claimant's federal tax credit under 26 USC 45D is subject to recapture under 26 USC
845D
(g), the claimant's tax credit under this subsection is subject to recapture at the
9same time and in the same manner as the claimant's federal tax credit.
SB461-SSA1,7,1210 3. No credit may be allowed under this subsection unless the claimant includes
11with the claimant's return a copy of the claimant's certification for tax benefits under
12s. 560.2065 (2) (b).
SB461-SSA1, s. 5 13Section 5. 71.30 (3) (dn) of the statutes is created to read:
SB461-SSA1,7,1414 71.30 (3) (dn) New markets credit under s. 71.28 (5n).
SB461-SSA1, s. 6 15Section 6. 71.47 (5n) of the statutes is created to read:
SB461-SSA1,7,1716 71.47 (5n) New markets credit. (a) Definition. In this subsection, "claimant"
17means a person who files a claim under this subsection.
SB461-SSA1,7,2218 (b) Filing claims. Subject to the limitations provided under this subsection and
19s. 560.2065, for investments made after December 31, 2010, a claimant may claim
20as a credit against the taxes imposed under s. 71.43, up to the amount of the taxes,
21the amount of the claimant's qualified equity investment, as certified under s.
22560.2065 (2), multiplied by the following percentage:
SB461-SSA1,7,2423 1. For the taxable year that corresponds to the first credit allowance date, as
24defined under 26 USC 45D (a) (3), zero percent.
SB461-SSA1,8,3
12. For the taxable years that correspond to the 6 credit allowance dates, as
2defined under 26 USC 45D (a) (3), following the credit allowance date described in
3subd. 1., 3 percent.
SB461-SSA1,8,224 (c) Limitations. 1. A partnership, limited liability company, or tax-option
5corporation may not claim the credit under this subsection. The partners of a
6partnership, members of a limited liability company, or shareholders in a tax-option
7corporation may claim the credit under this subsection based on eligible costs
8incurred by the partnership, company, or tax-option corporation. The partnership,
9limited liability company, or tax-option corporation shall calculate the amount of the
10credit which may be claimed by each partner, member, or shareholder and shall
11provide that information to the partner, member, or shareholder. For shareholders
12of a tax-option corporation, the credit may be allocated in proportion to the
13ownership interest of each shareholder. Credits computed by a partnership or
14limited liability company may be claimed in proportion to the ownership interests
15of the partners or members or allocated to partners or members as provided in a
16written agreement among the partners or members that is entered into no later than
17the last day of the taxable year of the partnership or limited liability company, for
18which the credit is claimed. Any partner or member who claims the credit as
19provided under this paragraph shall attach a copy of the agreement, if applicable, to
20the tax return on which the credit is claimed. A person claiming the credit as
21provided under this paragraph is solely responsible for any tax liability arising from
22a dispute with the department of revenue related to claiming the credit.
SB461-SSA1,9,423 2. Any claimant who transfers an interest in a partnership, limited liability
24company, or tax-option corporation after the first credit allowance date, as defined
25under 26 USC 45D (b), but before the final credit allowance date for the credit

1allowed under this subsection shall be entitled to claim the credit for the remaining
2credit allowance dates by filing with the claimant's return a written agreement
3between the claimant and the transferee of the interest that specifies that the
4claimant, not the transferee, is the person entitled to claim the credit.
SB461-SSA1,9,75 3. The Wisconsin adjusted basis of any investment for which a credit is claimed
6under par. (b) shall be reduced by the amount of the credit that is offset against
7Wisconsin income taxes.
SB461-SSA1,9,98 4. A claimant may claim the credit under this subsection regardless of whether
9the claimant claims a credit under 26 USC 45D.
SB461-SSA1,9,1110 (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
11under s. 71.28 (4), applies to the credit under this subsection.
SB461-SSA1,9,1612 2. The department of revenue may promulgate rules regarding the recapture
13of tax credits claimed under this subsection, consistent with 26 USC 45D (g). If a
14claimant's federal tax credit under 26 USC 45D is subject to recapture under 26 USC
1545D
(g), the claimant's tax credit under this subsection is subject to recapture at the
16same time and in the same manner as the claimant's federal tax credit.
SB461-SSA1,9,1917 3. No credit may be allowed under this subsection unless the claimant includes
18with the claimant's return a copy of the claimant's certification for tax benefits under
19s. 560.2065 (2) (b).
SB461-SSA1, s. 7 20Section 7. 71.49 (1) (dn) of the statutes is created to read:
SB461-SSA1,9,2121 71.49 (1) (dn) New markets credit under s. 71.47 (5n).
SB461-SSA1, s. 8 22Section 8. 76.639 of the statutes is created to read:
SB461-SSA1,9,26 2376.639 New markets credit. (1) Filing claims. Subject to the limitations
24provided under this section and s. 560.2065, for investments made after December
2531, 2010, an insurer may claim as a credit against the fees imposed under s. 76.60,

176.63, 76.65, 76.66, or 76.67 the amount of the insurer's qualified equity investment,
2as certified under s. 560.2065 (2), multiplied by the following percentage:
SB461-SSA1,10,43 (a) For the taxable year that corresponds to the first credit allowance date, as
4defined under 26 USC 45D (a) (3), zero percent.
SB461-SSA1,10,75 (b) For the taxable years that correspond to the 6 credit allowance dates, as
6defined under 26 USC 45D (a) (3), following the credit allowance date described in
7subd. 1., 3 percent.
SB461-SSA1,10,9 8(2) Limitations. (a) An insurer may claim the credit under this section
9regardless of whether the insurer claims a credit under 26 USC 45D.
SB461-SSA1,10,1410 (b) The department of revenue may promulgate rules regarding the recapture
11of credits claimed under this section, consistent with 26 USC 45D (g). If a claimant's
12federal tax credit under 26 USC 45D is subject to recapture under 26 USC 45D (g),
13the claimant's tax credit under this section is subject to recapture at the same time
14and in the same manner as the claimant's federal tax credit.
SB461-SSA1,10,1715 (c) No credit may be allowed under this section unless the claimant includes
16with the claimant's return a copy of the claimant's certification for tax benefits under
17s. 560.2065 (2) (b).
SB461-SSA1,10,23 18(3) Carry-forward. If the credit under sub. (2) is not entirely offset against the
19fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
20may be carried forward and credited against those fees for the following 15 years to
21the extent that it is not offset by those fees otherwise due in all the years between
22the year in which the expense was made and the year in which the carry-forward
23credit is claimed.
SB461-SSA1, s. 9 24Section 9. 560.2065 of the statutes is created to read:
SB461-SSA1,11,2
1560.2065 Certification of qualified equity investments. (1) Definitions.
2In this section:
SB461-SSA1,11,43 (a) "Credit allowance date" means a credit allowance date as defined under 26
4USC 45D
(a) (3).
SB461-SSA1,11,65 (b) "Qualified active low-income community business" means a qualified active
6low-income community business as defined in 26 USC 45D (d) 2.
SB461-SSA1,11,87 (c) "Qualified community development entity" means a qualified community
8development entity as defined under 26 USC 45D (c).
SB461-SSA1,11,109 (d) "Qualified equity investment" means a qualified equity investment as
10defined under 26 USC 45D (b).
SB461-SSA1,11,11 11(2) Certification. The department may do all of the following:
SB461-SSA1,11,1312 (a) Certify a qualified equity investment under this paragraph if all of the
13following apply:
SB461-SSA1,11,1514 1. The proposed qualified equity investment will be funded by a qualified
15community development entity whose service area includes the state.
SB461-SSA1,11,1816 2. The qualified community development entity identified in subd. 1. applies
17to the department on a form provided by the department and includes with the
18application evidence satisfactory to the department that all of the following apply:
SB461-SSA1,11,2119 a. Subject to the limit under sub. (4) (a), proceeds from the proposed qualified
20equity investment will be invested in or loaned to a qualified active low-income
21community business located in this state.
SB461-SSA1,11,2422 b. The proposed qualified equity investment will promote the creation or
23retention of jobs in this state or will promote other economic development goals
24established by the department by rule.
SB461-SSA1,12,5
1(b) Subject to the limit under sub. (4) (b), certify a person under this paragraph
2to claim tax credits under ss. 71.07 (5n), 71.28 (5n), 71.47 (5n), and 76.639 if the
3person applies to the department on a form provided by the department and submits
4evidence satisfactory to the department that the person made an investment in a
5qualified equity investment certified under par. (a).
SB461-SSA1,12,12 6(3) Eligibility. (a) A qualified equity investment certified under sub. (2) (a)
7shall be funded by the qualified community development entity that submitted the
8application under sub. (2) (a) 2. by the last day of the 13th month beginning after the
9date of certification under sub. (2) (a). The certification of a qualified equity
10investment that is not funded by the last day of the 13th month beginning after the
11date of certification under sub. (2) (a) shall expire on the first day of the 14th month
12beginning after the date of certification.
SB461-SSA1,12,1513 (b) A person certified under sub. (2) (b) is eligible to claim tax credits under ss.
1471.07 (5n), 71.28 (5n), 71.47 (5n), and 76.639 in each taxable year in which a credit
15allowance date falls.
SB461-SSA1,12,19 16(4) Limits. (a) A qualified active low-income community business receiving
17investments, loans, or proceeds from qualified community development entities
18certified under sub. (2) (a) may receive no more than $5,000,000 in investments,
19loans, or proceeds from such qualified community development entities.
SB461-SSA1,12,2320 (b) The maximum amount of tax credits under ss. 71.07 (5n), 71.28 (5n), 71.47
21(5n), and 76.639 that may be certified under sub. (2) (b), for making investments in
22qualified equity investments certified under sub. (2) (a), is $10,000,000 in each fiscal
23year, including the amount for all credit allowance dates.
SB461-SSA1,13,3
1(5) Duties of the department. (a) The department of commerce shall notify
2the department of revenue of every certification issued under sub. (2) and shall
3include the date on which any such certification is granted.
SB461-SSA1,13,54 (b) The department shall provide to each applicant under sub. (2) a dated
5written notice indicating the department's decision to grant or deny certification.
SB461-SSA1,13,76 (c) The department shall promulgate rules to administer this program,
7including all of the following:
SB461-SSA1,13,98 1. Deadlines for the submission of an application for certification under this
9section.
SB461-SSA1,13,1110 2. The period for review of applications submitted under this section, which
11period may not exceed 45 days.
SB461-SSA1,13,1412 3. Criteria for reviewing applications under this section and for prioritizing
13applications for certification received under sub. (2) (a). The criteria under this
14subdivision shall do all of the following:
SB461-SSA1,13,1615 a. Include economic development goals that are consistent with the provisions
16of 26 USC 45D.
SB461-SSA1,13,2017 b. Prioritize applications received under sub. (2) (a) from qualified community
18development entities proposing qualified equity investments in qualified active
19low-income community businesses that are owner-occupied businesses not
20primarily engaged in any of the activities identified under s. 560.205 (1) (g).
SB461-SSA1, s. 10 21Section 10. Nonstatutory provisions.
SB461-SSA1,13,2522 (1) (a) The department of commerce shall submit in proposed form the rules
23required under section 560.2065 (5) (c) of the statutes, as created by this act, to the
24legislative council staff under section 227.15 (1) of the statutes no later than the first
25day of the 4th month beginning after the effective date of this paragraph.
SB461-SSA1,14,9
1(b) Using the procedure under section 227.24 of the statutes, the department
2of commerce may promulgate rules required under section 560.2065 (5) (c) of the
3statutes, as created by this act, for the period before the effective date of the rules
4submitted under paragraph (a), but not to exceed the period authorized under section
5227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b),
6and (3) of the statutes, the department is not required to provide evidence that
7promulgating a rule under this paragraph as an emergency rule is necessary for the
8preservation of the public peace, health, safety, or welfare and is not required to
9provide a finding of emergency for a rule promulgated under this paragraph.
SB461-SSA1, s. 11 10Section 11. Initial applicability.
SB461-SSA1,14,1111 (1) This act first applies to taxable years beginning on January 1, 2011.
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