SB435, s. 7 10Section 7. 71.28 (5e) of the statutes is created to read:
SB435,6,1111 71.28 (5e) Biotechnology credit. (a) Definitions. In this subsection:
SB435,6,1212 1. "Animals" include bacteria, viruses, and other microorganisms.
SB435,6,1513 2. "Biotechnologies" include recombinant deoxyribonucleic acid techniques,
14biochemistry, molecular and cellular biology, genetics, genetic engineering,
15biological cell fusion, and other bioprocesses.
SB435,6,2116 3. "Biotechnology business" means a business, as certified by the department
17in the manner prescribed by the department, that is primarily engaged in the
18application of biotechnologies that use a living organism or parts of an organism to
19produce or modify products to improve plants or animals, develop microorganisms
20for specific uses, identify targets for small molecule pharmaceutical development, or
21transform biological systems into useful processes and products.
SB435,6,2222 4. "Claimant" means a person who files a claim under this subsection.
SB435,6,2323 5. "Manufacturing" has the meaning given in s. 77.54 (6m).
SB435,7,424 6. "Qualified research" means qualified research as defined under section 41
25(d) (1) of the Internal Revenue Code, except that research conducted by a public or

1private institution of higher education or by a governmental unit is "qualified
2research" if the research is intended to be useful in developing a new or improved
3product or service and the research satisfies section 41 (d) (1) (B) (i) and (C) of the
4Internal Revenue Code.
SB435,7,95 (b) Filing claims. Subject to the limitations provided in this subsection, a
6claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
7amount of the taxes, an amount that is equal to the amount of the taxes imposed
8under subchapter III of ch. 77 that the claimant paid in the taxable year on the
9purchase of any of the following:
SB435,7,1410 1. Machines and processing equipment, including accessories, attachments,
11and parts for the machines or equipment, that are used exclusively and directly by
12the claimant in raising animals that are sold primarily to a biotechnology business,
13a public or private institution of higher education, or a governmental unit for
14exclusive and direct use by any such entity in qualified research or manufacturing.
SB435,7,1915 2. The items listed in s. 77.54 (3m) (a) to (m), medicines, semen for artificial
16insemination, fuel, and electricity that are used exclusively and directly by the
17claimant in raising animals that are sold primarily to a biotechnology business, a
18public or private institution of higher education, or a governmental unit for exclusive
19and direct use by any such entity in qualified research or manufacturing.
SB435,7,2320 3. Machines and processing equipment, including accessories, attachments,
21and parts for the machines or equipment, that are used exclusively and directly by
22the claimant in qualified research in biotechnology, if the claimant is a biotechnology
23business.
SB435,8,3
14. Tangible personal property that is consumed or destroyed or loses its identity
2while being used exclusively and directly by the claimant in qualified research in
3biotechnology, if the claimant is a biotechnology business.
SB435,8,54 5. Animals that are used exclusively and directly by the claimant in qualified
5research in biotechnology, if the claimant is a biotechnology business.
SB435,8,96 (c) Limitations. 1. A claimant who claims a credit under par. (b) 1. and 2. shall
7obtain written documentation from the claimant's customers related to each
8customer's use of animals, including the percentage of animals sold to the customer
9that are used exclusively and directly in qualified research.
SB435,8,1710 2. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts under par. (b). A partnership,
13limited liability company, or tax-option corporation shall compute the amount of
14credit that each of its partners, members, or shareholders may claim and shall
15provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.
SB435,8,1918 (d) Administration. 1. The department shall publish on the department's
19Internet site a list of all biotechnology businesses certified by the department.
SB435,8,2120 2. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to
21the credit under this subsection.
SB435, s. 8 22Section 8. 71.30 (3) (dq) of the statutes is created to read:
SB435,8,2323 71.30 (3) (dq) Biotechnology credit under s. 71.28 (5e).
SB435, s. 9 24Section 9. 71.34 (1) (g) of the statutes is amended to read:
SB435,9,3
171.34 (1) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
3(3n), (3t), and (5b), and (5e) and passed through to shareholders.
SB435, s. 10 4Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:
SB435,9,105 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dx), (3n), and (5b), and (5e) and not passed
7through by a partnership, limited liability company, or tax-option corporation that
8has added that amount to the partnership's, limited liability company's, or
9tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
10credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
SB435, s. 11 11Section 11. 71.47 (5e) of the statutes is created to read:
SB435,9,1212 71.47 (5e) Biotechnology credit. (a) Definitions. In this subsection:
SB435,9,1313 1. "Animals" include bacteria, viruses, and other microorganisms.
SB435,9,1614 2. "Biotechnologies" include recombinant deoxyribonucleic acid techniques,
15biochemistry, molecular and cellular biology, genetics, genetic engineering,
16biological cell fusion, and other bioprocesses.
SB435,9,2217 3. "Biotechnology business" means a business, as certified by the department
18in the manner prescribed by the department, that is primarily engaged in the
19application of biotechnologies that use a living organism or parts of an organism to
20produce or modify products to improve plants or animals, develop microorganisms
21for specific uses, identify targets for small molecule pharmaceutical development, or
22transform biological systems into useful processes and products.
SB435,9,2323 4. "Claimant" means a person who files a claim under this subsection.
SB435,9,2424 5. "Manufacturing" has the meaning given in s. 77.54 (6m).
SB435,10,6
16. "Qualified research" means qualified research as defined under section 41
2(d) (1) of the Internal Revenue Code, except that research conducted by a public or
3private institution of higher education or by a governmental unit is "qualified
4research" if the research is intended to be useful in developing a new or improved
5product or service and the research satisfies section 41 (d) (1) (B) (i) and (C) of the
6Internal Revenue Code.
SB435,10,117 (b) Filing claims. Subject to the limitations provided in this subsection, a
8claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
9amount of the taxes, an amount that is equal to the amount of the taxes imposed
10under subchapter III of ch. 77 that the claimant paid in the taxable year on the
11purchase of any of the following:
SB435,10,1612 1. Machines and processing equipment, including accessories, attachments,
13and parts for the machines or equipment, that are used exclusively and directly by
14the claimant in raising animals that are sold primarily to a biotechnology business,
15a public or private institution of higher education, or a governmental unit for
16exclusive and direct use by any such entity in qualified research or manufacturing.
SB435,10,2117 2. The items listed in s. 77.54 (3m) (a) to (m), medicines, semen for artificial
18insemination, fuel, and electricity that are used exclusively and directly by the
19claimant in raising animals that are sold primarily to a biotechnology business, a
20public or private institution of higher education, or a governmental unit for exclusive
21and direct use by any such entity in qualified research or manufacturing.
SB435,10,2522 3. Machines and processing equipment, including accessories, attachments,
23and parts for the machines or equipment, that are used exclusively and directly by
24the claimant in qualified research in biotechnology, if the claimant is a biotechnology
25business.
SB435,11,3
14. Tangible personal property that is consumed or destroyed or loses its identity
2while being used exclusively and directly by the claimant in qualified research in
3biotechnology, if the claimant is a biotechnology business.
SB435,11,54 5. Animals that are used exclusively and directly by the claimant in qualified
5research in biotechnology, if the claimant is a biotechnology business.
SB435,11,96 (c) Limitations. 1. A claimant who claims a credit under par. (b) 1. and 2. shall
7obtain written documentation from the claimant's customers related to each
8customer's use of animals, including the percentage of animals sold to the customer
9that are used exclusively and directly in qualified research.
SB435,11,1710 2. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts under par. (b). A partnership,
13limited liability company, or tax-option corporation shall compute the amount of
14credit that each of its partners, members, or shareholders may claim and shall
15provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.
SB435,11,1918 (d) Administration. 1. The department shall publish on the department's
19Internet site a list of all biotechnology businesses certified by the department.
SB435,11,2120 2. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies
21to the credit under this subsection.
SB435, s. 12 22Section 12. 71.49 (1) (dq) of the statutes is created to read:
SB435,11,2323 71.49 (1) (dq) Biotechnology credit under s. 71.47 (5e).
SB435, s. 13 24Section 13. 77.92 (4) of the statutes is amended to read:
SB435,12,15
177.92 (4) "Net business income," with respect to a partnership, means taxable
2income as calculated under section 703 of the Internal Revenue Code; plus the items
3of income and gain under section 702 of the Internal Revenue Code, including taxable
4state and municipal bond interest and excluding nontaxable interest income or
5dividend income from federal government obligations; minus the items of loss and
6deduction under section 702 of the Internal Revenue Code, except items that are not
7deductible under s. 71.21; plus guaranteed payments to partners under section 707
8(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), and (5b), and (5e); and
10plus or minus, as appropriate, transitional adjustments, depreciation differences,
11and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding
12income, gain, loss, and deductions from farming. "Net business income," with respect
13to a natural person, estate, or trust, means profit from a trade or business for federal
14income tax purposes and includes net income derived as an employee as defined in
15section 3121 (d) (3) of the Internal Revenue Code.
SB435, s. 14 16Section 14. Initial applicability.
SB435,12,1717 (1) This act first applies to taxable years beginning on January 1, 2006.
SB435,12,1818 (End)
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