AB208: Bill Text

AB208,9,12 (c) Limitations. 1. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cm).

AB208,9,20 2. 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 amounts described under pars. (b) and (bm). 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 interests.

AB208,9,23 3. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.799 (5).

AB208,9,25 (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB208, s. 8 Section 8. 71.08 (1) (intro.) of the statutes is amended to read:

AB208,10,11 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3c), (3e), (3m), (3n), (3s), (3t), (3w), (5b), (5d), (6), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t), and (3w), and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t), and (3w), and subchs. VIII and IX, and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust, or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB208, s. 9 Section 9. 71.10 (4) (i) of the statutes is amended to read:

AB208,10,20 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), rural enterprise development income credit under s. 71.07 (3c), rural enterprise development capital gains credit under s. 71.07 (3e), rural enterprise development zone jobs credit under s. 71.07 (3w), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB208, s. 10 Section 10. 71.21 (4) of the statutes is amended to read:

AB208,10,24 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), and (5b) and passed through to partners shall be added to the partnership's income.

AB208, s. 11 Section 11. 71.26 (2) (a) of the statutes is amended to read:

AB208,11,18 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) minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3n), (3t), (3w), and (5b) 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).

AB208, s. 12 Section 12. 71.28 (3w) of the statutes is created to read:

AB208,11,21 71.28 (3w) Rural enterprise development zone jobs credit. (a) Definitions. In this subsection:

AB208,11,24 1. "Base year" means the taxable year beginning during the calendar year prior to the calendar year in which the rural enterprise development zone in which the claimant is located takes effect.

AB208,12,2 2. "Claimant" means a person who is certified to claim tax benefits under s. 560.799 (5) and who files a claim under this subsection.

AB208,12,5 3. "Full-time employee" means an individual who is employed in a regular, nonseasonal job and who, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.

AB208,12,7 4. "Rural enterprise development zone" means a zone designated under s. 560.799.

AB208,12,9 5. "State payroll" means the amount of payroll apportioned to this state, as determined under s. 71.25 (8).

AB208,12,15 6. "Zone payroll" means the amount of state payroll that is attributable to compensation paid to individuals for services that are performed in a rural enterprise development zone or who are working from an office located in a rural enterprise development zone if the work is incidental to any work that the individual performs within the rural enterprise development zone. "Zone payroll" does not include the amount of compensation paid to any individual that exceeds $100,000.

AB208,12,18 (b) Filing claims; payroll. Subject to the limitations provided in this subsection and s. 560.799, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows:

AB208,12,19 1. Determine the amount that is the lesser of:

AB208,12,21 a. The claimant's zone payroll in the taxable year, minus the claimant's zone payroll in the base year.

AB208,12,23 b. The claimant's state payroll in the taxable year, minus the claimant's state payroll in the base year.

AB208,13,2 2. Subtract the number of full-time employees that the claimant employed in the area that comprises the rural enterprise development zone in the base year from the number of full-time employees that the claimant employed in the rural enterprise development zone in the taxable year.

AB208,13,4 3. Multiply the amount determined under subd. 2., but not an amount less than zero, by $30,000.

AB208,13,6 4. Subtract the amount determined under subd. 3. from the amount determined under subd. 1.

AB208,13,7 5. Multiply the amount determined under subd. 4. by 7 percent.

AB208,13,11 (bm) Filing supplemental claims. In addition to the credit under par. (b) and subject to the limitations provided in this subsection and s. 560.799, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to all of the following:

AB208,13,14 1. The amount of the property taxes that the claimant paid in the taxable year for the claimant's personal property that is located in a rural enterprise development zone.

AB208,13,17 2. The amount of taxes imposed under subch. III of ch. 77 that the claimant paid in the taxable year on the purchase of tangible personal property and taxable services that are used or consumed primarily in a rural enterprise development zone.

AB208,13,23 3. If all of the claimant's payroll is zone payroll and all of the claimant's business-related property is located in a rural enterprise development zone, the amount obtained by multiplying 20 percent of the sum of the claimant's zone payroll in the taxable year and the adjusted basis of the claimant's property at the time that the property is first placed in service in the rural enterprise development zone by 7.9 percent.

AB208,14,3 4. The amount the claimant paid in the taxable year to upgrade or improve the skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of new technologies, or to train any full-time employee whose employment with the claimant represents the employee's first full-time job.

AB208,14,8 (c) Limitations. 1. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.23, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cm).

AB208,14,16 2. 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 amounts described under pars. (b) and (bm). 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 interests.

AB208,14,19 3. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.799 (5).

AB208,14,21 (d) Administration. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB208, s. 13 Section 13. 71.30 (3) (f) of the statutes is amended to read:

AB208,15,2 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), rural enterprise development zone jobs credit under s. 71.28 (3w), and estimated tax payments under s. 71.29.

AB208, s. 14 Section 14. 71.34 (1) (g) of the statutes is amended to read:

AB208,15,6 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), (3g), (3n), (3t), (3w), and (5b) and passed through to shareholders.

AB208, s. 15 Section 15. 71.45 (2) (a) 10. of the statutes is amended to read:

AB208,15,13 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), (3w), and (5b) 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), (3t), (4), and (5).

AB208, s. 16 Section 16. 71.47 (3w) of the statutes is created to read:

AB208,15,16 71.47 (3w) Rural enterprise development zone jobs credit. (a) Definitions. In this subsection:

AB208,15,19 1. "Base year" means the taxable year beginning during the calendar year prior to the calendar year in which the rural enterprise development zone in which the claimant is located takes effect.

AB208,15,21 2. "Claimant" means a person who is certified to claim tax benefits under s. 560.799 (5) and who files a claim under this subsection.

AB208,15,24 3. "Full-time employee" means an individual who is employed in a regular, nonseasonal job and who, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.

AB208,16,2 4. "Rural enterprise development zone" means a zone designated under s. 560.799.

AB208,16,4 5. "State payroll" means the amount of payroll apportioned to this state, as determined under s. 71.45 (3) (b).

AB208,16,10 6. "Zone payroll" means the amount of state payroll that is attributable to compensation paid to individuals for services that are performed in a rural enterprise development zone or who are working from an office located in a rural enterprise development zone if the work is incidental to any work that the individual performs within the rural enterprise development zone. "Zone payroll" does not include the amount of compensation paid to any individual that exceeds $100,000.

AB208,16,13 (b) Filing claims; payroll. Subject to the limitations provided in this subsection and s. 560.799, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount calculated as follows:

AB208,16,14 1. Determine the amount that is the lesser of:

AB208,16,16 a. The claimant's zone payroll in the taxable year, minus the claimant's zone payroll in the base year.

AB208,16,18 b. The claimant's state payroll in the taxable year, minus the claimant's state payroll in the base year.

AB208,16,22 2. Subtract the number of full-time employees that the claimant employed in the area that comprises the rural enterprise development zone in the base year from the number of full-time employees that the claimant employed in the rural enterprise development zone in the taxable year.

AB208,16,24 3. Multiply the amount determined under subd. 2., but not an amount less than zero, by $30,000.

AB208,17,2 4. Subtract the amount determined under subd. 3. from the amount determined under subd. 1.

AB208,17,3 5. Multiply the amount determined under subd. 4. by 7 percent.

AB208,17,7 (bm) Filing supplemental claims. In addition to the credit under par. (b) and subject to the limitations provided in this subsection and s. 560.799, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to all of the following:

AB208,17,10 1. The amount of the property taxes that the claimant paid in the taxable year for the claimant's personal property that is located in a rural enterprise development zone.

AB208,17,13 2. The amount of taxes imposed under subch. III of ch. 77 that the claimant paid in the taxable year on the purchase of tangible personal property and taxable services that are used or consumed primarily in a rural enterprise development zone.

AB208,17,19 3. If all of the claimant's payroll is zone payroll and all of the claimant's business-related property is located in a rural enterprise development zone, the amount obtained by multiplying 20 percent of the sum of the claimant's zone payroll in the taxable year and the adjusted basis of the claimant's property at the time that the property is first placed in service in the rural enterprise development zone by 7.9 percent.

AB208,17,24 4. The amount the claimant paid in the taxable year to upgrade or improve the skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of new technologies, or to train any full-time employee whose employment with the claimant represents the employee's first full-time job.

AB208,18,5 (c) Limitations. 1. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.43, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cm).

AB208,18,13 2. 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 amounts described under pars. (b) and (bm). 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 interests.

AB208,18,16 3. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.799 (5).

AB208,18,18 (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB208, s. 17 Section 17. 71.49 (1) (f) of the statutes is amended to read:

AB208,18,23 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), rural enterprise development zone jobs credit under s. 71.47 (3w), and estimated tax payments under s. 71.48.

AB208, s. 18 Section 18. 77.92 (4) of the statutes is amended to read:

AB208,19,15 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), (3g), (3s), (3n), (3t), (3w), and (5b); 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.

AB208, s. 19 Section 19. 560.799 of the statutes is created to read:

AB208,19,18 560.799 Rural enterprise development zone. (1) Definitions. In this section:

AB208,19,19 (a) "Local governing body" has the meaning given in s. 560.70 (4).

AB208,19,20 (b) "Political subdivision" means a city, village, town, or county.

AB208,19,22 (c) "Tax benefits" means the income and franchise tax credits under ss. 71.07 (3c), (3e), and (3w), 71.28 (3w), and 71.47 (3w).

AB208,20,2 (2) Application; development plan. (a) The local governing bodies of one or more political subdivisions may apply to the department for designation of an area as a rural enterprise development zone, if the proposed zone includes land within the boundaries of the political subdivision or political subdivisions applying for designation. An application shall include a development plan under par. (b).

AB208,20,3 (b) A development plan shall include all of the following:

AB208,20,6 1. A map of the proposed zone that shows the physical boundaries of the proposed zone, the size of the zone in acres, and the present uses and condition of land and structures in the proposed zone.

AB208,20,8 2. Evidence of support in the proposed zone for the proposed designation, including support from local government, the public, and business groups.

AB208,20,12 3. A description of the applicant's or applicants' goals for, and proposed methods for achieving, increased economic opportunity and expansion, infrastructure improvements, reduced regulatory burdens, and increased job training opportunities in the proposed zone.

AB208,20,16 4. A description of current social, economic, and demographic characteristics of the proposed zone and of the anticipated improvements in health, human services, and employment that would result from designation as a rural enterprise development zone.

AB208,20,18 5. A description of anticipated economic and other activity in the proposed zone, including industrial uses, commercial or retail uses, and residential uses.

AB208,20,20 6. A proposal as to the time period in which the designation would remain in effect.

AB208,20,25 (3) Designation of rural enterprise development zones; criteria. (a) The department may, upon applications by a political subdivision or political subdivisions, designate not more than 10 rural enterprise development zones. The department may designate an area as a rural enterprise development zone if all of the following apply:

AB208,21,1 1. The area does not exceed 5,000 acres.

AB208,21,3 2. The area does not include any part of a city of the first class or a city with a population greater than 200,000.

AB208,21,5 (b) In determining whether to grant an application to designate an area under par. (a), the department shall consider all of the following: