AB761: Bill Text

AB761,3,9 3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.

AB761,3,12 4. If a tax-option corporation becomes liable for tax, the corporation may offset the credit against the tax due, with any remaining credit passing through to the shareholders.

AB761,3,16 5. If a corporation that is not a tax-option corporation has a carry-over credit and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.

AB761,3,21 6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after the effective date of this subdivision .... [revisor inserts date], and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.

AB761, s. 3 Section 3. 71.07 (10) (a) of the statutes is repealed.

AB761, s. 4 Section 4. 71.07 (10) (b) of the statutes is renumbered 71.07 (10).

AB761, s. 5 Section 5. 71.10 (4) (de) of the statutes is created to read:

AB761,3,25 71.10 (4) (de) The manufacturing sales tax credit under s. 71.07 (3s).

AB761, s. 6 Section 6. 71.21 (4) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB761,4,5 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL) and, (2ds) and (3s) and passed through to partners or members shall be added to the partnership's or limited liability company's income.

AB761, s. 7 Section 7. 71.28 (3) (b) of the statutes is amended to read:

AB761,4,16 71.28 (3) (b) The tax imposed upon or measured by corporation Wisconsin net income under s. 71.23 (1) or (2) shall be reduced by an amount equal to the sales and use tax under ch. 77 paid by the corporation in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders of a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the tax-option corporation or partnership, in proportion to the ownership interest of each shareholder or partner. The tax-option corporation or partnership shall calculate the amount of the credit that may be claimed by each shareholder or partner and shall provide that information to the shareholder or partner.

AB761, s. 8 Section 8. 71.28 (3) (c) of the statutes is renumbered 71.28 (3) (c) 1.

AB761, s. 9 Section 9. 71.28 (3) (c) 2. to 6. of the statutes are created to read:

AB761,4,21 71.28 (3) (c) 2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.

AB761,4,23 3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.

AB761,5,3 4. If a tax-option corporation becomes liable for tax, the corporation may offset the credit against the tax due, with any remaining credit passing through to the shareholders.

AB761,5,7 5. If a corporation that is not a tax-option corporation has a carry-over credit and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.

AB761,5,12 6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after the effective date of this subdivision .... [revisor inserts date], and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.

AB761, s. 10 Section 10. 71.28 (3) (d) of the statutes is repealed.

AB761, s. 11 Section 11. 71.34 (1) (e) of the statutes is repealed.

AB761, s. 12 Section 12. 71.34 (1) (g) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB761,5,19 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL) and, (1ds) and (3s) and passed through to shareholders.

AB761, s. 13 Section 13. 71.365 (3) (a) of the statutes is renumbered 71.365 (3).

AB761, s. 14 Section 14. 71.365 (3) (b) of the statutes is repealed.

AB761, s. 15 Section 15. 71.47 (3) (b) of the statutes is amended to read:

AB761,6,7 71.47 (3) (b) The tax imposed upon or measured by corporation Wisconsin net income under s. 71.43 (1) or (2) shall be reduced by an amount equal to the sales and use tax under ch. 77 paid by the corporation in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders of a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the tax-option corporation or partnership, in proportion to the ownership interest of each shareholder or partner. The tax-option corporation or partnership shall calculate the amount of the credit that may be claimed by each shareholder or partner and shall provide that information to the shareholder or partner.

AB761, s. 16 Section 16. 71.47 (3) (c) of the statutes is renumbered 71.47 (3) (c) 1.

AB761, s. 17 Section 17. 71.47 (3) (c) 2. to 6. of the statutes are created to read:

AB761,6,12 71.47 (3) (c) 2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.

AB761,6,14 3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.

AB761,6,17 4. If a tax-option corporation becomes liable for tax, the corporation may offset the credit against the tax due, with any remaining credit passing through to the shareholders.

AB761,6,21 5. If a corporation that is not a tax-option corporation has a carry-over credit and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.

AB761,7,2 6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after the effective date of this subdivision .... [revisor inserts date], and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.

AB761, s. 18 Section 18. 71.47 (3) (d) of the statutes is repealed.

AB761, s. 19 Section 19. Initial applicability.

AB761,7,6 (1) This act first applies to taxable years beginning on the January 1 after publication.

AB761,7,7 (End)