AB522,7,55 71.30 (3) (dm) The certified capital company credit under s. 71.28 (7m).
AB522, s. 8 6Section 8. 71.34 (1) (g) of the statutes is amended to read:
AB522,7,97 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
8corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), and
9(3g), and (7m) and passed through to shareholders.
AB522, s. 9 10Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB522,7,1611 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
12computed under s. 71.47 (1dd) to (1dx) and (7m) and not passed through by a
13partnership, limited liability company or tax-option corporation that has added that
14amount to the partnership's, limited liability company's or tax-option corporation's
15income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
16s. 71.47 (1), (3), (4) and (5).
AB522, s. 10 17Section 10. 71.47 (7m) of the statutes is created to read:
AB522,7,1818 71.47 (7m) Certified capital company credit. (a) In this subsection:
AB522,7,1919 1. "Certified capital company" has the meaning given in s. 560.30 (2).
AB522,7,2020 2. "Certified capital investment" has the meaning given in s. 560.30 (4).
AB522,7,2421 3. "Claimant" means a person who is subject to taxation under subchs. I, II, and
22IV of ch. 76, a credit union organized under ch. 186, a savings bank organized under
23ch. 214, a savings and loan association organized under ch. 215, or a bank organized
24under ch. 221.
AB522,7,2525 4. "Investment date" has the meaning given in s. 560.30 (6).
AB522,8,1
15. "Investment pool" has the meaning given in s. 560.30 (7).
AB522,8,22 6. "Qualified investment" has the meaning given in s. 560.30 (11).
AB522,8,93 (b) A claimant who makes a certified capital investment may claim as a credit
4against the tax imposed under s. 71.43, up to the amount of those taxes, for 10 years
5beginning with the year of the investment, an amount equal to either 10 percent of
6that investment or the amount by which the sum of the claimant's certified capital
7investments and the claimant's qualified investments exceeds the claimant's
8qualified investments in the taxable year before the claimant first claimed the credit
9under this subsection, whichever is less.
AB522,8,1110 (c) Subsection 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under 71.28
11(4), applies to the credit under this subsection.
AB522,8,1912 (d) Partnerships, limited liability companies, and tax-option corporations may
13not claim the credit under this subsection, but the eligibility for, and the amount of,
14the credit are based on their payment of a certified capital investment. A
15partnership, limited liability company, or tax-option corporation shall compute the
16amount of credit that each of its partners, members, or shareholders may claim and
17shall provide that information to each of them. Partners, members of limited liability
18companies, and shareholders of tax-option corporations may claim the credit in
19proportion to their ownership interest.
AB522,8,2520 (e) 1. If a certified capital company is decertified, or an investment pool is
21disqualified, under s. 560.37 before the certified capital company fulfills the
22investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment
23pool, any claimant that has received a credit under this subsection with respect to
24that investment pool shall repay that credit to the department of revenue and may
25not claim more credit in respect to that investment pool.
AB522,9,10
12. If a certified capital company fulfills the investment requirement under s.
2560.34 (1m) (a) 1. with respect to an investment pool but the certified capital
3company is decertified, or an investment pool is disqualified, under s. 560.37 before
4the certified capital company fulfills the investment requirement under s. 560.34
5(1m) (a) 2. for that investment pool, any claimant that has received a credit under
6this subsection with respect to that investment pool shall repay all credits that were
7claimed for taxable years after the taxable year that includes the 3rd anniversary of
8the investment date of the investment pool and may claim no more credits for taxable
9years after the taxable year that includes the 3rd anniversary of the investment date
10of the investment pool.
AB522, s. 11 11Section 11. 71.49 (1) (dm) of the statutes is created to read:
AB522,9,1212 71.49 (1) (dm) The certified capital company credit under s. 71.47 (7m).
AB522, s. 12 13Section 12. 77.92 (4) of the statutes is amended to read:
AB522,9,2514 77.92 (4) "Net business income", with respect to a partnership, means taxable
15income as calculated under section 703 of the Internal Revenue Code; plus the items
16of income and gain under section 702 of the Internal Revenue Code, including taxable
17state and municipal bond interest and excluding nontaxable interest income or
18dividend income from federal government obligations; minus the items of loss and
19deduction under section 702 of the Internal Revenue Code, except items that are not
20deductible under s. 71.21; plus guaranteed payments to partners under section 707
21(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
22(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (7m); and plus or
23minus, as appropriate, transitional adjustments, depreciation differences, and basis
24differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
25loss, and deductions from farming. "Net business income", with respect to a natural

1person, estate, or trust, means profit from a trade or business for federal income tax
2purposes and includes net income derived as an employee as defined in section 3121
3(d) (3) of the Internal Revenue Code.
AB522, s. 13 4Section 13. 560.30 (3) of the statutes is amended to read:
AB522,10,65 560.30 (3) "Certified capital company tax credit" means the tax credit under
6s. ss. 71.07 (7m), 71.28 (7m), 71.47 (7m), and 76.635.
AB522, s. 14 7Section 14. 560.37 (4) of the statutes is amended to read:
AB522,10,108 560.37 (4) Effect of decertification. Decertification of a certified capital
9company or an investment pool has the effects specified in s. ss. 71.07 (7m) (e), 71.28
10(7m) (e), 71.47 (7m) (e), and
76.635 (4).
AB522, s. 15 11Section 15. 560.37 (5) of the statutes is amended to read:
AB522,10,1512 560.37 (5) Notices to certified investors. The department shall notify a
13certified investor when the certified capital company tax credit arising from a
14certified investment is no longer subject to recapture and forfeiture under s. ss. 71.07
15(7m) (e), 71.28 (7m) (e), 71.47 (7m) (e), and
76.635 (4).
AB522, s. 16 16Section 16. Initial applicability.
AB522,10,2017 (1) This act first applies to taxable years beginning on January 1 of the year
18in which this subsection takes effect, except that if this subsection takes effect after
19July 31 this act first applies to taxable years beginning on January 1 of the year
20following the year in which this subsection takes effect.
AB522,10,2121 (End)
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