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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