LRB-3722/1
JS:jrd:km
1995 - 1996 LEGISLATURE
May 16, 1995 - Introduced by Senators Leean, Ellis and Rude, by request of
Governor Tommy G. Thompson. Referred to Committee on State Government
Operations and Corrections.
SB200,1,6 1An Act to repeal 71.07 (2dj) (e) 3. b., 71.28 (1dj) (e) 3. b. and 71.47 (1dj) (e) 3. b.;
2to renumber and amend 71.07 (2dj) (e) 3. a., 71.28 (1dj) (e) 3. a. and 71.47 (1dj)
3(e) 3. a.; and to amend 71.07 (2di) (d) 2., 71.07 (2ds) (d) 2., 71.28 (1di) (d) 2.,
471.28 (1ds) (d) 2., 71.28 (4) (am), 71.47 (1di) (d) 2., 71.47 (1ds) (d) 2., 71.47 (4)
5(am) and 71.78 (4) (m) of the statutes; relating to: the development zones tax
6credits.
Analysis by the Legislative Reference Bureau
Under current law, persons who claim one of the development zones income tax
or franchise tax credits are required to submit certain specific information with their
tax returns. Under this bill, they are required to verify that their activities
substantially correspond to the information that they submitted to obtain
certification for the credits.
Under current law, claimants of the additional research income tax or franchise
tax credit are required to submit a statement from the department of development
(DOD) that verifies certain specific information. This bill requires the same
verification from DOD that applies to the development zones credits.
This bill allows employes of local units of government that have development
zones access to income tax and franchise tax information to the extent that it is
necessary for them to assist DOD to administer the development zones program.
For further information see the state and local 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:
SB200, s. 1
1Section 1. 71.07 (2di) (d) 2. of the statutes is amended to read:
SB200,2,62 71.07 (2di) (d) 2. A statement from the department of development verifying
3the purchase price of the investment and verifying that the investment fulfills the
4requirements under par. (a)
that the claimant's activities substantially correspond
5to the information upon which the department of development relied to certify the
6claimant under s. 560.765 (3)
.
SB200, s. 2 7Section 2. 71.07 (2dj) (e) 3. a. of the statutes is renumbered 71.07 (2dj) (e) 3.
8and amended to read:
SB200,2,159 71.07 (2dj) (e) 3. If certified under s. 560.765 (3) for tax benefits before January
101, 1992, a
A statement from the department of development verifying the amount of
11qualifying wages and verifying that the employes were hired for work only in a
12development zone or are mobile employes whose base of operations is in a
13development zone
that the claimant's activities substantially correspond to the
14information upon which the department of development relied to certify the claimant
15under s. 560.765 (3)
.
SB200, s. 3 16Section 3. 71.07 (2dj) (e) 3. b. of the statutes is repealed.
SB200, s. 4 17Section 4. 71.07 (2ds) (d) 2. of the statutes is amended to read:
SB200,2,2218 71.07 (2ds) (d) 2. A statement from the department of development verifying
19the amount of taxes paid under subchs. III and V of ch. 77 for eligible property by the
20claimant
that the claimant's activities substantially correspond to the information
21upon which the department of development relied to certify the claimant under s.
22560.765 (3)
.
SB200, s. 5 23Section 5. 71.28 (1di) (d) 2. of the statutes is amended to read:
SB200,3,324 71.28 (1di) (d) 2. A statement from the department of development verifying
25the purchase price of the investment and verifying that the investment fulfills the

1requirements under par. (a)
that the claimant's activities substantially correspond
2to the information upon which the department of development relied to certify the
3claimant under s. 560.765 (3)
.
SB200, s. 6 4Section 6. 71.28 (1dj) (e) 3. a. of the statutes is renumbered 71.28 (1dj) (e) 3.
5and amended to read:
SB200,3,126 71.28 (1dj) (e) 3. If certified under s. 560.765 (3) for tax benefits before January
71, 1992, a
A statement from the department of development verifying the amount of
8qualifying wages and verifying that the employes were hired for work only in a
9development zone or are mobile employes whose base of operations is in a
10development zone
that the claimant's activities substantially correspond to the
11information upon which the department of development relied to certify the claimant
12under s. 560.765 (3)
.
SB200, s. 7 13Section 7. 71.28 (1dj) (e) 3. b. of the statutes is repealed.
SB200, s. 8 14Section 8. 71.28 (1ds) (d) 2. of the statutes is amended to read:
SB200,3,1915 71.28 (1ds) (d) 2. A statement from the department of development verifying
16the amount of taxes paid under subchs. III and V of ch. 77 for eligible property by the
17claimant
that the claimant's activities substantially correspond to the information
18upon which the department of development relied to certify the claimant under s.
19560.765 (3)
.
SB200, s. 9 20Section 9. 71.28 (4) (am) of the statutes is amended to read:
SB200,4,1921 71.28 (4) (am) Development zone additional research credit. 1. In addition to
22the credit under par. (a), any corporation may credit against taxes otherwise due
23under this chapter an amount equal to 5% of the amount obtained by subtracting
24from the corporation's qualified research expenses, as defined in section 41 of the
25internal revenue code, except that "qualified research expenses" include only

1expenses incurred by the claimant in a development zone under subch. VI of ch. 560
2and except that "qualified research expenses" do not include compensation used in
3computing the credit under sub. (1dj) nor research expenses incurred before the
4claimant is certified for tax benefits under s. 560.765 (3), the corporation's base
5amount, as defined in section 41 (c) of the internal revenue code, in a development
6zone, except that gross receipts used in calculating the base amount means gross
7receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d)
8and research expenses used in calculating the base amount include research
9expenses incurred before the claimant is certified for tax benefits under s. 560.765
10(3), in a development zone, if the claimant submits with the claimant's return a copy
11of the claimant's certification for tax benefits under s. 560.765 (3) and a statement
12from the department of development verifying the claimant's qualified research
13expenses for research conducted exclusively in a development zone
that the
14claimant's activities substantially correspond to the information upon which the
15department of development relied to certify the claimant under s. 560.765 (3)
. The
16rules under s. 73.03 (35) apply to the credit under this subdivision. The rules under
17sub. (1di) (f) and (g) as they apply to the credit under that subsection apply to claims
18under this subdivision. Section 41 (h) of the internal revenue code does not apply
19to the credit under this subdivision.
SB200, s. 10 20Section 10. 71.47 (1di) (d) 2. of the statutes is amended to read:
SB200,4,2521 71.47 (1di) (d) 2. A statement from the department of development verifying
22the purchase price of the investment and verifying that the investment fulfills the
23requirements under par. (a)
that the claimant's activities substantially correspond
24to the information upon which the department relied to certify the claimant under
25s. 560.765 (3)
.
SB200, s. 11
1Section 11. 71.47 (1dj) (e) 3. a. of the statutes is renumbered 71.47 (1dj) (e) 3.
2and amended to read:
SB200,5,93 71.47 (1dj) (e) 3. If certified under s. 560.765 (3) for tax benefits before January
41, 1992, a
A statement from the department of development verifying the amount of
5qualifying wages and verifying that the employes were hired for work only in a
6development zone or are mobile employes whose base of operations is in a
7development zone
that the claimant's activities substantially correspond to the
8information upon which the department relied to certify the claimant under s.
9560.765 (3)
.
SB200, s. 12 10Section 12. 71.47 (1dj) (e) 3. b. of the statutes is repealed.
SB200, s. 13 11Section 13. 71.47 (1ds) (d) 2. of the statutes is amended to read:
SB200,5,1512 71.47 (1ds) (d) 2. A statement from the department of development verifying
13the amount of taxes paid under subchs. III and V of ch. 77 for eligible property by the
14claimant
that the claimant's activities substantially correspond to the information
15upon which the department relied to certify the claimant under s. 560.765 (3)
.
SB200, s. 14 16Section 14. 71.47 (4) (am) of the statutes is amended to read:
SB200,6,1517 71.47 (4) (am) Development zone additional research credit. In addition to the
18credit under par. (a), any corporation may credit against taxes otherwise due under
19this chapter an amount equal to 5% of the amount obtained by subtracting from the
20corporation's qualified research expenses, as defined in section 41 of the internal
21revenue code, except that "qualified research expenses" include only expenses
22incurred by the claimant in a development zone under subch. VI of ch. 560 and except
23that "qualified research expenses" do not include compensation used in computing
24the credit under sub. (1dj) nor research expenses incurred before the claimant is
25certified for tax benefits under s. 560.765 (3), the corporation's base amount, as

1defined in section 41 (c) of the internal revenue code, in a development zone, except
2that gross receipts used in calculating the base amount means gross receipts from
3sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d) and research
4expenses used in calculating the base amount include research expenses incurred
5before the claimant is certified for tax benefits under s. 560.765 (3), in a development
6zone, if the claimant submits with the claimant's return a copy of the claimant's
7certification for tax benefits under s. 560.765 (3) and a statement from the
8department of development verifying the claimant's qualified research expenses for
9research conducted exclusively in a development zone
that the claimant's activities
10substantially correspond to the information upon which the department of
11development relied to certify the claimant under s. 560.765 (3)
. The rules under s.
1273.03 (35) apply to the credit under this paragraph. The rules under sub. (1di) (f) and
13(g) as they apply to the credit under that subsection apply to claims under this
14paragraph. Section 41 (h) of the internal revenue code does not apply to the credit
15under this paragraph.
SB200, s. 15 16Section 15. 71.78 (4) (m) of the statutes is amended to read:
SB200,6,2117 71.78 (4) (m) The secretary of development and employes of that department
18to the extent necessary to administer the development zone program under subch.
19VI of ch. 560 and employes of local units of government that have development zones
20to the extent that it is necessary for them to aid the department of development to
21perform its duties under s. 560.75 (8)
.
SB200, s. 16 22Section 16. Initial applicability; revenue.
SB200,6,23 23(1)  This act first applies to taxable years beginning on January 1, 1995.
SB200,6,2424 (End)
Loading...
Loading...