AB756: Bill Text

LRB-4258/1

JK:jld:jf

2009 - 2010 LEGISLATURE

2009 Assembly BILL 756

February 17, 2010 - Introduced by Representatives Vruwink, Smith, Ripp, A. Ott, Jorgensen, Radcliffe, Danou, Molepske Jr., Garthwaite, Kestell, Davis, Berceau, Hebl, Brooks, Spanbauer, Ballweg, Strachota, Black, Zepnick, Turner, Petersen, Townsend, Zigmunt, Sinicki, Bies, Benedict, Hixson, LeMahieu, Nerison, Hraychuck and Hubler, cosponsored by Senators Vinehout, Harsdorf, Taylor and Schultz. Referred to Committee on Agriculture.

AB756,1,7 An Act to repeal 71.07 (3n) (a) 6. c., 71.28 (3n) (a) 6. c. and 71.47 (3n) (a) 6. c.; and to amend 71.07 (3n) (a) 2. (intro.), 71.07 (3n) (a) 6. b., 71.07 (3n) (b) 1., 71.07 (3n) (d), 71.07 (3n) (e) 1., 71.07 (3n) (e) 2., 71.28 (3n) (a) 2. (intro.), 71.28 (3n) (a) 6. b., 71.28 (3n) (b) 1., 71.28 (3n) (d), 71.28 (3n) (e) 1., 71.28 (3n) (e) 2., 71.47 (3n) (a) 2. (intro.), 71.47 (3n) (a) 6. b., 71.47 (3n) (b) 1., 71.47 (3n) (d), 71.47 (3n) (e) 1. and 71.47 (3n) (e) 2. of the statutes; relating to: the dairy and livestock investment tax credits.

Analysis by the Legislative Reference Bureau

Under current law, a taxpayer may claim an income and franchise tax credit for amounts paid for dairy farm modernization and expansion for taxable years beginning after December 31, 2003, and before January 1, 2010. Under this bill, a taxpayer may claim the dairy farm modernization and expansion credit for taxable years beginning after December 31, 2003, and before January 1, 2012.

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:

AB756, s. 1 Section 1. 71.07 (3n) (a) 2. (intro.) of the statutes is amended to read:

AB756,2,7 71.07 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010 2012:

AB756, s. 2 Section 2. 71.07 (3n) (a) 6. b. of the statutes is amended to read:

AB756,2,12 71.07 (3n) (a) 6. b. For taxable years that begin after December 31, 2005, and before January 1, 2010 2012, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB756, s. 3 Section 3. 71.07 (3n) (a) 6. c. of the statutes is repealed.

AB756, s. 4 Section 4. 71.07 (3n) (b) 1. of the statutes is amended to read:

AB756,2,20 71.07 (3n) (b) 1. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2010 2012, a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 an amount equal to 10% of the amount the claimant paid in the taxable year for dairy farm modernization or expansion related to the operation of the claimant's dairy farm.

AB756, s. 5 Section 5. 71.07 (3n) (d) of the statutes is amended to read:

AB756,2,23 71.07 (3n) (d) The aggregate amount of credits that a claimant may claim under this subsection is $50,000 $75,000.

AB756, s. 6 Section 6. 71.07 (3n) (e) 1. of the statutes is amended to read:

AB756,3,9 71.07 (3n) (e) 1. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000 $75,000. 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 interest.

AB756, s. 7 Section 7. 71.07 (3n) (e) 2. of the statutes is amended to read:

AB756,3,14 71.07 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000 $75,000.

AB756, s. 8 Section 8. 71.28 (3n) (a) 2. (intro.) of the statutes is amended to read:

AB756,3,21 71.28 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or acquiring equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010 2012:

AB756, s. 9 Section 9. 71.28 (3n) (a) 6. b. of the statutes is amended to read:

AB756,4,2 71.28 (3n) (a) 6. b. For taxable years that begin after December 31, 2005, and before January 1, 2010 2012, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB756, s. 10 Section 10. 71.28 (3n) (a) 6. c. of the statutes is repealed.

AB756, s. 11 Section 11. 71.28 (3n) (b) 1. of the statutes is amended to read:

AB756,4,9 71.28 (3n) (b) 1. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2010 2012, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to 10% of the amount the claimant paid in the taxable year for dairy farm modernization or expansion related to the operation of the claimant's dairy farm.

AB756, s. 12 Section 12. 71.28 (3n) (d) of the statutes is amended to read:

AB756,4,12 71.28 (3n) (d) The aggregate amount of credits that a claimant may claim under this subsection is $50,000 $75,000.

AB756, s. 13 Section 13. 71.28 (3n) (e) 1. of the statutes is amended to read:

AB756,4,22 71.28 (3n) (e) 1. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000 $75,000. 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 interest.

AB756, s. 14 Section 14. 71.28 (3n) (e) 2. of the statutes is amended to read:

AB756,5,2 71.28 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000 $75,000.

AB756, s. 15 Section 15. 71.47 (3n) (a) 2. (intro.) of the statutes is amended to read:

AB756,5,9 71.47 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010 2012:

AB756, s. 16 Section 16. 71.47 (3n) (a) 6. b. of the statutes is amended to read:

AB756,5,14 71.47 (3n) (a) 6. b. For taxable years that begin after December 31, 2005, and before January 1, 2010 2012, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB756, s. 17 Section 17. 71.47 (3n) (a) 6. c. of the statutes is repealed.

AB756, s. 18 Section 18. 71.47 (3n) (b) 1. of the statutes is amended to read:

AB756,5,21 71.47 (3n) (b) 1. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2010 2012, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 10% of the amount the claimant paid in the taxable year for dairy farm modernization or expansion related to the operation of the claimant's dairy farm.

AB756, s. 19 Section 19. 71.47 (3n) (d) of the statutes is amended to read:

AB756,5,24 71.47 (3n) (d) The aggregate amount of credits that a claimant may claim under this subsection is $50,000 $75,000.

AB756, s. 20 Section 20. 71.47 (3n) (e) 1. of the statutes is amended to read:

AB756,6,9 71.47 (3n) (e) 1. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000 $75,000. 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 interest.

AB756, s. 21 Section 21. 71.47 (3n) (e) 2. of the statutes is amended to read:

AB756,6,14 71.47 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000 $75,000.