LRB-3742/2
JK:jld:jf
2007 - 2008 LEGISLATURE
January 25, 2008 - Introduced by Representatives A. Ott, Steinbrink, Petrowski,
Ballweg, Hubler, Mursau, Hahn, Jorgensen, Kerkman, Musser, Albers,
Gunderson, Townsend, Gronemus
and M. Williams, cosponsored by Senators
Vinehout, Kapanke, Schultz, Harsdorf, Lehman, Olsen and Roessler.
Referred to Committee on Agriculture.
AB732,1,5 1An Act to amend 71.08 (1) (intro.), 71.10 (4) (i), 71.30 (3) (f) and 71.49 (1) (f); and
2to create 20.835 (2) (bd), 71.07 (3r), 71.28 (3r), 71.47 (3r) and 560.208 of the
3statutes; relating to: a meat processing facility investment income and
4franchise tax credit, granting rule-making authority, and making an
5appropriation.
Analysis by the Legislative Reference Bureau
Under current law, a person may claim an income and franchise tax credit for
10 percent of the amount that the person paid in the taxable year for dairy
manufacturing modernization and expansion related to the person's dairy
manufacturing operation. This bill provides an income and franchise tax credit for
10 percent of the amount that a person pays in the taxable year for meat processing
modernization or expansion related to the person's meat processing operation.
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:
AB732, s. 1 6Section 1. 20.835 (2) (bd) of the statutes is created to read:
AB732,2,2
120.835 (2) (bd) Meat processing facility investment credit. A sum sufficient to
2make the payments under ss. 71.07 (3r), 71.28 (3r), and 71.47 (3r).
AB732, s. 2 3Section 2. 71.07 (3r) of the statutes is created to read:
AB732,2,54 71.07 (3r) Meat processing facility investment credit. (a) Definitions. In this
5subsection:
AB732,2,66 1. "Claimant" means a person who files a claim under this subsection.
AB732,2,87 2. "Meat processing" means processing livestock into meat products or
8processing meat products for sale commercially.
AB732,2,139 3. "Meat processing modernization or expansion" means constructing,
10improving, or acquiring buildings or facilities, or acquiring equipment, for meat
11processing, including the following, if used exclusively for meat processing and if
12acquired and placed in service in this state during taxable years that begin after
13December 31, 2008, and before January 1, 2017:
AB732,2,1514 a. Building construction, including livestock handling, product intake, storage,
15and warehouse facilities.
AB732,2,1616 b. Building additions.
AB732,2,1817 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing,
18and waste facilities.
AB732,2,1919 d. Livestock intake and storage equipment.
AB732,2,2220 e. Processing and manufacturing equipment, including cutting equipment,
21mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking
22equipment, pipes, motors, pumps, and valves.
AB732,2,2423 f. Packaging and handling equipment, including sealing, bagging, boxing,
24labeling, conveying, and product movement equipment.
AB732,2,2525 g. Warehouse equipment, including storage and curing racks.
AB732,3,3
1h. Waste treatment and waste management equipment, including tanks,
2blowers, separators, dryers, digesters, and equipment that uses waste to produce
3energy, fuel, or industrial products.
AB732,3,74 i. Computer software and hardware used for managing the claimant's meat
5processing operation, including software and hardware related to logistics,
6inventory management, production plant controls, and temperature monitoring
7controls.
AB732,3,98 4. "Used exclusively" means used to the exclusion of all other uses except for
9use not exceeding 5 percent of total use.
AB732,3,1510 (b) Filing claims. Subject to the limitations provided in this subsection and s.
11560.208, for taxable years beginning after December 31, 2008, and before January
121, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02
13or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount
14the claimant paid in the taxable year for meat processing modernization or
15expansion related to the claimant's meat processing operation.
AB732,3,1816 (c) Limitations. 1. No credit may be allowed under this subsection for any
17amount that the claimant paid for expenses described under par. (b) that the
18claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
AB732,3,2019 2. The aggregate amount of credits that a claimant may claim under this
20subsection is $200,000.
AB732,3,2321 3. a. The maximum amount of the credits that may be claimed under this
22subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2009-10 is $300,000, as
23allocated under s. 560.208.
AB732,4,3
1b. The maximum amount of the credits that may be claimed under this
2subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2010-11, and in each fiscal
3year thereafter, is $700,000, as allocated under s. 560.208.
AB732,4,124 4. Partnerships, limited liability companies, and tax-option corporations may
5not claim the credit under this subsection, but the eligibility for, and the amount of,
6the credit are based on their payment of expenses under par. (b), except that the
7aggregate amount of credits that the entity may compute shall not exceed $200,000.
8A partnership, limited liability company, or tax-option corporation shall compute
9the amount of credit that each of its partners, members, or shareholders may claim
10and shall provide that information to each of them. Partners, members of limited
11liability companies, and shareholders of tax-option corporations may claim the
12credit in proportion to their ownership interest.
AB732,4,1613 5. If 2 or more persons own and operate the meat processing operation, each
14person may claim a credit under par. (b) in proportion to his or her ownership
15interest, except that the aggregate amount of the credits claimed by all persons who
16own and operate the meat processing operation shall not exceed $200,000.
AB732,4,1817 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
18credit under s. 71.28 (4), applies to the credit under this subsection.
AB732,4,2319 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
20due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due
21shall be certified by the department of revenue to the department of administration
22for payment by check, share draft, or other draft drawn from the appropriation
23account under s. 20.835 (2) (bd).
AB732, s. 3 24Section 3. 71.08 (1) (intro.) of the statutes, as affected by 2007 Wisconsin Act
2520
, is amended to read:
AB732,5,10
171.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
2couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
3ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3n), (3p),
4(3r), (3s), (3t), (3w), (5b), (5d), (5e), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj),
5(1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), (3t), and (3w), and 71.47 (1dd), (1de), (1di),
6(1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), (3t), and (3w), and subchs. VIII and IX
7and payments to other states under s. 71.07 (7), is less than the tax under this
8section, there is imposed on that natural person, married couple filing jointly, trust
9or estate, instead of the tax under s. 71.02, an alternative minimum tax computed
10as follows:
AB732, s. 4 11Section 4. 71.10 (4) (i) of the statutes, as affected by 2007 Wisconsin Act 20,
12is amended to read:
AB732,5,2113 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
14preservation credit under subch. IX, homestead credit under subch. VIII, farmland
15tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
1671.07 (2fd), dairy manufacturing facility investment credit under s. 71.07 (3p), meat
17processing facility investment credit under s. 71.07 (3r),
film production services
18credit under s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit
19under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), earned income tax
20credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld
21under subch. X.
AB732, s. 5 22Section 5. 71.28 (3r) of the statutes is created to read:
AB732,5,2423 71.28 (3r) Meat processing facility investment credit. (a) Definitions. In this
24subsection:
AB732,5,2525 1. "Claimant" means a person who files a claim under this subsection.
AB732,6,2
12. "Meat processing" means processing livestock into meat products or
2processing meat products for sale commercially.
AB732,6,73 3. "Meat processing modernization or expansion" means constructing,
4improving, or acquiring buildings or facilities, or acquiring equipment, for meat
5processing, including the following, if used exclusively for meat processing and if
6acquired and placed in service in this state during taxable years that begin after
7December 31, 2008, and before January 1, 2017:
AB732,6,98 a. Building construction, including livestock handling, product intake, storage,
9and warehouse facilities.
AB732,6,1010 b. Building additions.
AB732,6,1211 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing,
12and waste facilities.
AB732,6,1313 d. Livestock intake and storage equipment.
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