SB184: Bill Text

LRB-2536/1

JK:lmk:pg

2005 - 2006 LEGISLATURE

2005 Senate BILL 184

April 22, 2005 - Introduced by Senators Stepp, Kanavas, Zien and Roessler, cosponsored by Representatives Vos, McCormick, Krawczyk, Kreibich and Freese. Referred to Committee on Job Creation, Economic Development and Consumer Affairs.

SB184,1,12 An Act to repeal 71.10 (3) (ac), 71.10 (4) (gg), 71.10 (4) (grb), 71.10 (4) (grd), 71.10 (4) (gu), 71.30 (3) (eg), 71.30 (3) (emb), 71.30 (3) (eom), 71.30 (3) (eon), 71.49 (1) (eg), 71.49 (1) (emb), 71.49 (1) (eom) and 71.49 (1) (eon); to amend 71.07 (2di) (c), 71.07 (2dm) (h), 71.07 (2dx) (e), 71.07 (3g) (c), 71.10 (4) (i), 71.28 (1di) (c), 71.28 (1dm) (h), 71.28 (1dx) (e), 71.28 (3g) (c), 71.30 (3) (f), 71.47 (1di) (c), 71.47 (1dm) (h), 71.47 (1dx) (e), 71.47 (3g) (c) and 71.49 (1) (f); and to create 20.835 (2) (dz), 71.07 (2di) (gm), 71.07 (2dm) (gm), 71.07 (2dx) (dm), 71.07 (3g) (bm), 71.28 (1di) (gm), 71.28 (1dm) (gm), 71.28 (1dx) (dm), 71.28 (3g) (bm), 71.47 (1di) (gm), 71.47 (1dm) (gm), 71.47 (1dx) (dm) and 71.47 (3g) (bm) of the statutes; relating to: allowing refunds for claiming the development zones capital investment tax credit, development zones credit, development opportunity zones credit, technology zones credit, and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, generally, a person doing business in any development zone, including an enterprise zone and a technology zone, may claim an income or franchise tax credit for amounts the person spent to conduct certain business activities in the zone. If the amount of the credits claimed by the person exceeds the person's tax liability, the state will not issue a refund check, but the person may carry forward any remaining credit to subsequent taxable years. Under this bill, if the amount of the credits claimed by the person exceeds the person's tax liability, the state will issue a refund check to the person.

For further information see the state 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:

SB184, s. 1 Section 1. 20.835 (2) (dz) of the statutes is created to read:

SB184,2,5 20.835 (2) (dz) Development zones and technology zones credits. A sum sufficient to make the payments under ss. 71.07 (2di) (gm), (2dm) (gm), (2dx) (dm), and (3g) (bm), 71.28 (1di) (gm), (1dm) (gm), (1dx) (dm), and (3g) (bm), and 71.47 (1di) (gm), (1dm) (gm), (1dx) (dm), and (3g) (bm).

SB184, s. 2 Section 2. 71.07 (2di) (c) of the statutes is amended to read:

SB184,2,10 71.07 (2di) (c) Except as provided in par. (b) 2., the for taxable years beginning before January 1, 2006, the carry-over provisions of s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit under this subsection and apply as if the development zone continued to exist.

SB184, s. 3 Section 3. 71.07 (2di) (gm) of the statutes is created to read:

SB184,2,18 71.07 (2di) (gm) For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 4 Section 4. 71.07 (2dm) (gm) of the statutes is created to read:

SB184,3,8 71.07 (2dm) (gm) For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 5 Section 5. 71.07 (2dm) (h) of the statutes is amended to read:

SB184,3,12 71.07 (2dm) (h) The For taxable years beginning before January 1, 2006, the carry-over provisions of s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit under this subsection.

SB184, s. 6 Section 6. 71.07 (2dx) (dm) of the statutes is created to read:

SB184,3,20 71.07 (2dx) (dm) Refunds. For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 7 Section 7. 71.07 (2dx) (e) of the statutes is amended to read:

SB184,4,4 71.07 (2dx) (e) Administration. Section 71.28 (4) (e) to (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. For taxable years beginning before January 1, 2006, s. 71.28 (4) (e) and (f), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. Subsection (2dj) (c), as it applies to the credit under sub. (2dj), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce's verification of their expenses.

SB184, s. 8 Section 8. 71.07 (3g) (bm) of the statutes is created to read:

SB184,4,12 71.07 (3g) (bm) For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 9 Section 9. 71.07 (3g) (c) of the statutes is amended to read:

SB184,4,17 71.07 (3g) (c) Section 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under par. (a). For taxable years beginning before January 1, 2006, s. 71.28 (4) (e) and (f), as it applies to the credit under s. 71.28 (4), applies to the credit under par. (a).

SB184, s. 10 Section 10. 71.10 (3) (ac) of the statutes is repealed.

SB184, s. 11 Section 11. 71.10 (4) (gg) of the statutes is repealed.

SB184, s. 12 Section 12. 71.10 (4) (grb) of the statutes is repealed.

SB184, s. 13 Section 13. 71.10 (4) (grd) of the statutes is repealed.

SB184, s. 14 Section 14. 71.10 (4) (gu) of the statutes is repealed.

SB184, s. 15 Section 15. 71.10 (4) (i) of the statutes is amended to read:

SB184,5,6 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, development zones investment credit under s. 71.07 (2di), development zone capital investment credit under s. 71.07 (2dm), development zones credit under s. 71.07 (2dx), technology zones credit under s. 71.07 (3g), farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB184, s. 16 Section 16. 71.28 (1di) (c) of the statutes is amended to read:

SB184,5,11 71.28 (1di) (c) Except as provided in par. (b) 2., the for taxable years beginning before January 1, 2006, the carry-over provisions of sub. (4) (e) and (f) as they relate to the credit under that subsection relate to the credit under this subsection and apply as if the development zone continued to exist.

SB184, s. 17 Section 17. 71.28 (1di) (gm) of the statutes is created to read:

SB184,5,19 71.28 (1di) (gm) For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 18 Section 18. 71.28 (1dm) (gm) of the statutes is created to read:

SB184,6,2 71.28 (1dm) (gm) For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 19 Section 19. 71.28 (1dm) (h) of the statutes is amended to read:

SB184,6,6 71.28 (1dm) (h) The For taxable years beginning before January 1, 2006, the carry-over provisions of sub. (4) (e) and (f) as they relate to the credit under sub. (4) relate to the credit under this subsection.

SB184, s. 20 Section 20. 71.28 (1dx) (dm) of the statutes is created to read:

SB184,6,14 71.28 (1dx) (dm) Refunds. For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).

SB184, s. 21 Section 21. 71.28 (1dx) (e) of the statutes is amended to read:

SB184,6,22 71.28 (1dx) (e) Administration. Subsection (4) (e) to (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection. For taxable years beginning after January 1, 2006, sub. (4) (e) and (f), as it applies to the credit under sub. (4), applies to the credit under this subsection. Subsection (1dj) (c), as it applies to the credit under sub. (1dj), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce's verification of their expenses.

SB184, s. 22 Section 22. 71.28 (3g) (bm) of the statutes is created to read:

SB184,7,5 71.28 (3g) (bm) For credits computed based on amounts paid or incurred in taxable years beginning after December 31, 2005, if the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, 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) (dz).