AB754,2,83 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3rm),
5(3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a
6partnership, limited liability company, or tax-option corporation that has added that
7amount to the partnership's, company's, or tax-option corporation's income under s.
871.21 (4) or 71.34 (1k) (g).
AB754, s. 3 9Section 3. 71.07 (3rm) of the statutes is created to read:
AB754,2,1110 71.07 (3rm) Lumber manufacturing facility investment credit. (a)
11Definitions. In this subsection:
AB754,2,1212 1. "Claimant" means a person who files a claim under this subsection.
AB754,2,1713 2. "Lumber manufacturing modernization or expansion" means constructing,
14improving, or acquiring buildings or facilities, or acquiring equipment for lumber
15manufacturing, if used exclusively for lumber manufacturing and if acquired and
16placed in service in this state during taxable years that begin after December 31,
172008, and before January 1, 2015.
AB754,2,1918 3. "Used exclusively" means used to the exclusion of all other uses except for
19use not exceeding 5 percent of total use.
AB754,2,2520 (b) Filing claims. Subject to the limitations provided in this subsection and s.
21560.209, for taxable years beginning after December 31, 2008, and before January
221, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.02
23or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount
24the claimant paid in the taxable year for lumber manufacturing modernization or
25expansion.
AB754,3,3
1(c) Limitations. 1. No credit may be allowed under this subsection for any
2amount that the claimant paid for expenses described under par. (b) that the
3claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
AB754,3,54 2. The aggregate amount of credits that a claimant may claim under this
5subsection is $200,000.
AB754,3,86 3. a. The maximum amount of the credits that may be claimed under this
7subsection and ss. 71.28 (3rm) and 71.47 (3rm) in fiscal year 2009-10 is $700,000,
8as allocated under s. 560.209.
AB754,3,119 b. The maximum amount of the credits that may be claimed under this
10subsection and ss. 71.28 (3rm) and 71.47 (3rm) in fiscal year 2010-11, and in each
11fiscal year thereafter, is $800,000, as allocated under s. 560.209.
AB754,3,2012 4. Partnerships, limited liability companies, and tax-option corporations may
13not claim the credit under this subsection, but the eligibility for, and the amount of,
14the credit are based on their payment of expenses under par. (b), except that the
15aggregate amount of credits that the entity may compute shall not exceed $200,000.
16A partnership, limited liability company, or tax-option corporation shall compute
17the amount of credit that each of its partners, members, or shareholders may claim
18and shall provide that information to each of them. Partners, members of limited
19liability companies, and shareholders of tax-option corporations may claim the
20credit in proportion to their ownership interest.
AB754,3,2421 5. If 2 or more persons own and operate the lumber manufacturing operation,
22each person may claim a credit under par. (b) in proportion to his or her ownership
23interest, except that the aggregate amount of the credits claimed by all persons who
24own and operate the operation shall not exceed $200,000.
AB754,4,2
1(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
2credit under s. 71.28 (4), applies to the credit under this subsection.
AB754,4,73 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
4due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due
5shall be certified by the department of revenue to the department of administration
6for payment by check, share draft, or other draft drawn from the appropriation
7account under s. 20.835 (2) (ba).
AB754, s. 4 8Section 4. 71.08 (1) (intro.) of the statutes, as affected by 2009 Wisconsin Act
92
, is amended to read:
AB754,4,1910 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
11couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
12ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (2fd), (3m), (3n),
13(3p), (3r), (3rm), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (6), (6e), and (9e), 71.28 (1dd),
14(1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w), and
1571.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and
16(3w), and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less
17than the tax under this section, there is imposed on that natural person, married
18couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative
19minimum tax computed as follows:
AB754, s. 5 20Section 5. 71.10 (4) (i) of the statutes, as affected by 2009 Wisconsin Act 2, is
21amended to read:
AB754,5,622 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
23preservation credit under subch. IX, homestead credit under subch. VIII, farmland
24tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
2571.07 (2fd), dairy manufacturing facility investment credit under s. 71.07 (3p), meat

1processing facility investment credit under s. 71.07 (3r), lumber manufacturing
2facility investment credit under s. 71.07 (3rm),
film production services credit under
3s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit under s. 71.07
4(6e), enterprise zone jobs credit under s. 71.07 (3w), earned income tax credit under
5s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under
6subch. X.
AB754, s. 6 7Section 6. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 2, is
8amended to read:
AB754,5,129 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
10(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3rm), (3s), (3t), (3w),
11(5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added
12to the partnership's income.
AB754, s. 7 13Section 7. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 2,
14is amended to read:
AB754,5,2015 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
16(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3r), (3rm),
17(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a
18partnership, limited liability company, or tax-option corporation that has added that
19amount to the partnership's, limited liability company's, or tax-option corporation's
20income under s. 71.21 (4) or 71.34 (1k) (g).
AB754, s. 8 21Section 8. 71.28 (3rm) of the statutes is created to read:
AB754,5,2322 71.28 (3rm) Lumber manufacturing facility investment credit. (a)
23Definitions. In this subsection:
AB754,5,2424 1. "Claimant" means a person who files a claim under this subsection.
AB754,6,5
12. "Lumber manufacturing modernization or expansion" means constructing,
2improving, or acquiring buildings or facilities, or acquiring equipment for lumber
3manufacturing, if used exclusively for lumber manufacturing and if acquired and
4placed in service in this state during taxable years that begin after December 31,
52008, and before January 1, 2015.
AB754,6,76 3. "Used exclusively" means used to the exclusion of all other uses except for
7use not exceeding 5 percent of total use.
AB754,6,138 (b) Filing claims. Subject to the limitations provided in this subsection and s.
9560.209, for taxable years beginning after December 31, 2008, and before January
101, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.23,
11up to the amount of the tax, an amount equal to 10 percent of the amount the
12claimant paid in the taxable year for lumber manufacturing modernization or
13expansion.
AB754,6,1614 (c) Limitations. 1. No credit may be allowed under this subsection for any
15amount that the claimant paid for expenses described under par. (b) that the
16claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
AB754,6,1817 2. The aggregate amount of credits that a claimant may claim under this
18subsection is $200,000.
AB754,6,2119 3. a. The maximum amount of the credits that may be claimed under this
20subsection and ss. 71.07 (3rm) and 71.47 (3rm) in fiscal year 2009-10 is $700,000,
21as allocated under s. 560.209.
AB754,6,2422 b. The maximum amount of the credits that may be claimed under this
23subsection and ss. 71.07 (3rm) and 71.47 (3rm) in fiscal year 2010-11, and in each
24fiscal year thereafter, is $800,000, as allocated under s. 560.209.
AB754,7,9
14. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of expenses under par. (b), except that the
4aggregate amount of credits that the entity may compute shall not exceed $200,000.
5A partnership, limited liability company, or tax-option corporation shall compute
6the amount of credit that each of its partners, members, or shareholders may claim
7and shall provide that information to each of them. Partners, members of limited
8liability companies, and shareholders of tax-option corporations may claim the
9credit in proportion to their ownership interest.
AB754,7,1310 5. If 2 or more persons own and operate the lumber manufacturing operation,
11each person may claim a credit under par. (b) in proportion to his or her ownership
12interest, except that the aggregate amount of the credits claimed by all persons who
13own and operate the operation shall not exceed $200,000.
AB754,7,1514 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
15under sub. (4), applies to the credit under this subsection.
AB754,7,2016 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
17due under s. 71.23, the amount of the claim not used to offset the tax due shall be
18certified by the department of revenue to the department of administration for
19payment by check, share draft, or other draft drawn from the appropriation account
20under s. 20.835 (2) (ba).
AB754, s. 9 21Section 9. 71.30 (3) (f) of the statutes, as affected by 2009 Wisconsin Act 2, is
22amended to read:
AB754,8,423 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28
24(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
25s. 71.28 (2m), dairy manufacturing facility investment credit under s. 71.28 (3p),

1meat processing facility investment credit under s. 71.28 (3r), lumber manufacturing
2facility investment credit under s. 71.28 (3rm),
enterprise zone jobs credit under s.
371.28 (3w), film production services credit under s. 71.28 (5f) (b) 2., and estimated
4tax payments under s. 71.29.
AB754, s. 10 5Section 10. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 2,
6is amended to read:
AB754,8,107 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
8corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
9(3), (3g), (3h), (3n), (3p), (3r), (3rm), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k)
10and passed through to shareholders.
AB754, s. 11 11Section 11. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act
122
, is amended to read:
AB754,8,1913 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
14computed under s. 71.47 (1dd) to (1dy), (3h), (3n), (3p), (3r), (3rm), (3w), (5e), (5f), (5g),
15(5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability
16company, or tax-option corporation that has added that amount to the partnership's,
17limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
1871.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and
19(5).
AB754, s. 12 20Section 12. 71.47 (3rm) of the statutes is created to read:
AB754,8,2221 71.47 (3rm) Lumber manufacturing facility investment credit. (a)
22Definitions. In this subsection:
AB754,8,2323 1. "Claimant" means a person who files a claim under this subsection.
AB754,9,324 2. "Lumber manufacturing modernization or expansion" means constructing,
25improving, or acquiring buildings or facilities, or acquiring equipment for lumber

1manufacturing, if used exclusively for lumber manufacturing and if acquired and
2placed in service in this state during taxable years that begin after December 31,
32008, and before January 1, 2015.
AB754,9,54 3. "Used exclusively" means used to the exclusion of all other uses except for
5use not exceeding 5 percent of total use.
AB754,9,116 (b) Filing claims. Subject to the limitations provided in this subsection and s.
7560.209, for taxable years beginning after December 31, 2008, and before January
81, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.43,
9up to the amount of the tax, an amount equal to 10 percent of the amount the
10claimant paid in the taxable year for lumber manufacturing modernization or
11expansion.
AB754,9,1412 (c) Limitations. 1. No credit may be allowed under this subsection for any
13amount that the claimant paid for expenses described under par. (b) that the
14claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
AB754,9,1615 2. The aggregate amount of credits that a claimant may claim under this
16subsection is $200,000.
AB754,9,1917 3. a. The maximum amount of the credits that may be claimed under this
18subsection and ss. 71.07 (3rm) and 71.28 (3rm) in fiscal year 2009-10 is $700,000,
19as allocated under s. 560.209.
AB754,9,2220 b. The maximum amount of the credits that may be claimed under this
21subsection and ss. 71.07 (3rm) and 71.28 (3rm) in fiscal year 2010-11, and in each
22fiscal year thereafter, is $800,000, as allocated under s. 560.209.
AB754,9,2523 4. Partnerships, limited liability companies, and tax-option corporations may
24not claim the credit under this subsection, but the eligibility for, and the amount of,
25the credit are based on their payment of expenses under par. (b), except that the

1aggregate amount of credits that the entity may compute shall not exceed $200,000.
2A partnership, limited liability company, or tax-option corporation shall compute
3the amount of credit that each of its partners, members, or shareholders may claim
4and shall provide that information to each of them. Partners, members of limited
5liability companies, and shareholders of tax-option corporations may claim the
6credit in proportion to their ownership interest.
AB754,10,107 5. If 2 or more persons own and operate the lumber manufacturing operation,
8each person may claim a credit under par. (b) in proportion to his or her ownership
9interest, except that the aggregate amount of the credits claimed by all persons who
10own and operate the operation shall not exceed $200,000.
AB754,10,1211 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
12credit under s. 71.28 (4), applies to the credit under this subsection.
AB754,10,1713 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
14due under s. 71.43, the amount of the claim not used to offset the tax due shall be
15certified by the department of revenue to the department of administration for
16payment by check, share draft, or other draft drawn from the appropriation account
17under s. 20.835 (2) (ba).
AB754, s. 13 18Section 13. 71.49 (1) (f) of the statutes, as affected by 2009 Wisconsin Act 2,
19is amended to read:
AB754,11,220 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47
21(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
22s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p),
23meat processing facility investment credit under s. 71.47 (3r), lumber manufacturing
24facility investment credit under s. 71.47 (3rm),
enterprise zone jobs credit under s.

171.47 (3w), film production services credit under s. 71.47 (5f) (b) 2., and estimated
2tax payments under s. 71.48.
AB754, s. 14 3Section 14. 77.92 (4) of the statutes, as affected by 2009 Wisconsin Act 2, is
4amended to read:
AB754,11,205 77.92 (4) "Net business income," with respect to a partnership, means taxable
6income as calculated under section 703 of the Internal Revenue Code; plus the items
7of income and gain under section 702 of the Internal Revenue Code, including taxable
8state and municipal bond interest and excluding nontaxable interest income or
9dividend income from federal government obligations; minus the items of loss and
10deduction under section 702 of the Internal Revenue Code, except items that are not
11deductible under s. 71.21; plus guaranteed payments to partners under section 707
12(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
13(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3rm),
14(3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k); and plus or minus, as
15appropriate, transitional adjustments, depreciation differences, and basis
16differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
17loss, and deductions from farming. "Net business income," with respect to a natural
18person, estate, or trust, means profit from a trade or business for federal income tax
19purposes and includes net income derived as an employee as defined in section 3121
20(d) (3) of the Internal Revenue Code.
AB754, s. 15 21Section 15. 560.209 of the statutes is created to read:
AB754,11,25 22560.209 Lumber manufacturing facility investment credit. (1) The
23department of commerce shall implement a program to certify taxpayers as eligible
24for the lumber manufacturing facility investment credit under ss. 71.07 (3rm), 71.28
25(3rm), and 71.47 (3rm).
AB754,12,6
1(2) If the department of commerce certifies a taxpayer under sub. (1), the
2department of commerce shall determine the amount of credits to allocate to that
3taxpayer. The total amount of lumber manufacturing facility investment credits
4allocated to taxpayers in fiscal year 2009-10 may not exceed $700,000 and the total
5amount of lumber manufacturing facility investment credits allocated to taxpayers
6in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $800,000.
AB754,12,9 7(3) The department of commerce shall inform the department of revenue of
8every taxpayer certified under sub. (1) and the amount of credits allocated to the
9taxpayer.
AB754,12,11 10(4) The department of commerce, in consultation with the department of
11revenue, shall promulgate rules to administer this section.
AB754,12,1212 (End)
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