AB522: Bill Text

AB522,2,14 3. "Claimant" means a person who is subject to taxation under subchs. I, II, and IV of ch. 76, a credit union organized under ch. 186, a savings bank organized under ch. 214, a savings and loan association organized under ch. 215, or a bank organized under ch. 221.

AB522,3,1 4. "Investment date" has the meaning given in s. 560.30 (6).

AB522,3,2 5. "Investment pool" has the meaning given in s. 560.30 (7).

AB522,3,3 6. "Qualified investment" has the meaning given in s. 560.30 (11).

AB522,3,10 (b) A claimant who makes a certified capital investment may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, for 10 years beginning with the year of the investment, an amount equal to either 10 percent of that investment or the amount by which the sum of the claimant's certified capital investments and the claimant's qualified investments exceeds the claimant's qualified investments in the taxable year before the claimant first claimed the credit under this subsection, whichever is less.

AB522,3,12 (c) Subsection 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under 71.28 (4), applies to the credit under this subsection.

AB522,3,20 (d) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of a certified capital investment. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB522,4,2 (e) 1. If a certified capital company is decertified, or an investment pool is disqualified, under s. 560.37 before the certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment pool, any claimant that has received a credit under this subsection with respect to that investment pool shall repay that credit to the department of revenue and may not claim more credit in respect to that investment pool.

AB522,4,12 2. If a certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 1. with respect to an investment pool but the certified capital company is decertified, or an investment pool is disqualified, under s. 560.37 before the certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 2. for that investment pool, any claimant that has received a credit under this subsection with respect to that investment pool shall repay all credits that were claimed for taxable years after the taxable year that includes the 3rd anniversary of the investment date of the investment pool and may claim no more credits for taxable years after the taxable year that includes the 3rd anniversary of the investment date of the investment pool.

AB522, s. 3 Section 3. 71.10 (4) (cp) of the statutes is created to read:

AB522,4,14 71.10 (4) (cp) The certified capital company credit under s. 71.07 (7m).

AB522, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

AB522,4,18 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), and (3s) , and (7m) and passed through to partners shall be added to the partnership's income.

AB522, s. 5 Section 5. 71.26 (2) (a) of the statutes is amended to read:

AB522,5,9 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the Internal Revenue Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1), (3), (4), and (5) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), and (3g), and (7m) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

AB522, s. 6 Section 6. 71.28 (7m) of the statutes is created to read:

AB522,5,11 71.28 (7m) Certified capital company credit. (a) In this subsection:

AB522,5,12 1. "Certified capital company" has the meaning given in s. 560.30 (2).

AB522,5,13 2. "Certified capital investment" has the meaning given in s. 560.30 (4).

AB522,5,17 3. "Claimant" means a person who is subject to taxation under subchs. I, II, and IV of ch. 76, a credit union organized under ch. 186, a savings bank organized under ch. 214, a savings and loan association organized under ch. 215, or a bank organized under ch. 221.

AB522,5,18 4. "Investment date" has the meaning given in s. 560.30 (6).

AB522,5,19 5. "Investment pool" has the meaning given in s. 560.30 (7).

AB522,5,20 6. "Qualified investment" has the meaning given in s. 560.30 (11).

AB522,6,2 (b) A claimant who makes a certified capital investment may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, for 10 years beginning with the year of the investment, an amount equal to either 10 percent of that investment or the amount by which the sum of the claimant's certified capital investments and the claimant's qualified investments exceeds the claimant's qualified investments in the taxable year before the claimant first claimed the credit under this subsection, whichever is less.

AB522,6,4 (c) Subsection (4) (e), (f), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB522,6,12 (d) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of a certified capital investment. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB522,6,18 (e) 1. If a certified capital company is decertified, or an investment pool is disqualified, under s. 560.37 before the certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment pool, any claimant that has received a credit under this subsection with respect to that investment pool shall repay that credit to the department of revenue and may not claim more credit in respect to that investment pool.

AB522,7,3 2. If a certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 1. with respect to an investment pool but the certified capital company is decertified, or an investment pool is disqualified, under s. 560.37 before the certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 2. for that investment pool, any claimant that has received a credit under this subsection with respect to that investment pool shall repay all credits that were claimed for taxable years after the taxable year that includes the 3rd anniversary of the investment date of the investment pool and may claim no more credits for taxable years after the taxable year that includes the 3rd anniversary of the investment date of the investment pool.

AB522, s. 7 Section 7. 71.30 (3) (dm) of the statutes is created to read:

AB522,7,5 71.30 (3) (dm) The certified capital company credit under s. 71.28 (7m).

AB522, s. 8 Section 8. 71.34 (1) (g) of the statutes is amended to read:

AB522,7,9 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), (1dm), (1ds), (1dx), (3), and (3g), and (7m) and passed through to shareholders.

AB522, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

AB522,7,16 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx) and (7m) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (4) and (5).

AB522, s. 10 Section 10. 71.47 (7m) of the statutes is created to read:

AB522,7,18 71.47 (7m) Certified capital company credit. (a) In this subsection:

AB522,7,19 1. "Certified capital company" has the meaning given in s. 560.30 (2).

AB522,7,20 2. "Certified capital investment" has the meaning given in s. 560.30 (4).

AB522,7,24 3. "Claimant" means a person who is subject to taxation under subchs. I, II, and IV of ch. 76, a credit union organized under ch. 186, a savings bank organized under ch. 214, a savings and loan association organized under ch. 215, or a bank organized under ch. 221.

AB522,7,25 4. "Investment date" has the meaning given in s. 560.30 (6).

AB522,8,1 5. "Investment pool" has the meaning given in s. 560.30 (7).

AB522,8,2 6. "Qualified investment" has the meaning given in s. 560.30 (11).

AB522,8,9 (b) A claimant who makes a certified capital investment may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, for 10 years beginning with the year of the investment, an amount equal to either 10 percent of that investment or the amount by which the sum of the claimant's certified capital investments and the claimant's qualified investments exceeds the claimant's qualified investments in the taxable year before the claimant first claimed the credit under this subsection, whichever is less.

AB522,8,11 (c) Subsection 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under 71.28 (4), applies to the credit under this subsection.

AB522,8,19 (d) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of a certified capital investment. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB522,8,25 (e) 1. If a certified capital company is decertified, or an investment pool is disqualified, under s. 560.37 before the certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment pool, any claimant that has received a credit under this subsection with respect to that investment pool shall repay that credit to the department of revenue and may not claim more credit in respect to that investment pool.

AB522,9,10 2. If a certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 1. with respect to an investment pool but the certified capital company is decertified, or an investment pool is disqualified, under s. 560.37 before the certified capital company fulfills the investment requirement under s. 560.34 (1m) (a) 2. for that investment pool, any claimant that has received a credit under this subsection with respect to that investment pool shall repay all credits that were claimed for taxable years after the taxable year that includes the 3rd anniversary of the investment date of the investment pool and may claim no more credits for taxable years after the taxable year that includes the 3rd anniversary of the investment date of the investment pool.

AB522, s. 11 Section 11. 71.49 (1) (dm) of the statutes is created to read:

AB522,9,12 71.49 (1) (dm) The certified capital company credit under s. 71.47 (7m).

AB522, s. 12 Section 12. 77.92 (4) of the statutes is amended to read:

AB522,9,25 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (7m); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income", with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB522, s. 13 Section 13. 560.30 (3) of the statutes is amended to read:

AB522,10,6 560.30 (3) "Certified capital company tax credit" means the tax credit under s. ss. 71.07 (7m), 71.28 (7m), 71.47 (7m), and 76.635.

AB522, s. 14 Section 14. 560.37 (4) of the statutes is amended to read:

AB522,10,10 560.37 (4) Effect of decertification. Decertification of a certified capital company or an investment pool has the effects specified in s. ss. 71.07 (7m) (e), 71.28 (7m) (e), 71.47 (7m) (e), and 76.635 (4).

AB522, s. 15 Section 15. 560.37 (5) of the statutes is amended to read:

AB522,10,15 560.37 (5) Notices to certified investors. The department shall notify a certified investor when the certified capital company tax credit arising from a certified investment is no longer subject to recapture and forfeiture under s. ss. 71.07 (7m) (e), 71.28 (7m) (e), 71.47 (7m) (e), and 76.635 (4).

AB522, s. 16 Section 16. Initial applicability.

AB522,10,20 (1) This act first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB522,10,21 (End)