SB120,11,98 71.49 (1) (cr) Community development financial institution credit under s.
971.47 (5p).
SB120, s. 30 10Section 30. 76.634 of the statutes is created to read:
SB120,11,20 1176.634 Community development financial institution credit. (1) Filing
12claims.
Subject to the limitations provided under this subsection and the
13requirements under s. 560.295, for taxable years beginning after December 31, 2010,
14and before January 1, 2013, an insurer may claim as a credit against the fees due
15under s. 76.60, 76.63, 76.65, 76.66, or 76.67 for the taxable year in which the
16investment is made, an amount equal to 10 percent of the insurer's qualified
17investment in a community development financial institution, if the investment is
18at least $10,000, but not more than $150,000, or 12 percent of the insurer's qualified
19investment in a community development financial institution, if the investment is
20more than $150,000, but not more than $500,000.
SB120,12,2 21(2) Carry-forward. If the credit under sub. (1) is not entirely offset against the
22fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
23may be carried forward and credited against those fees for the following 15 years to
24the extent that it is not offset by those fees otherwise due in all the years between

1the year in which the expense was made and the year in which the carry-forward
2credit is claimed.
SB120,12,5 3(3) Limitations. No credit may be allowed under this section unless the insurer
4includes with the insurer's annual return under s. 76.64 a copy of the insurer's
5certification for tax benefits under s. 560.295 (5) (b).
SB120, s. 31 6Section 31. 76.67 (2) of the statutes is amended to read:
SB120,12,167 76.67 (2) If any domestic insurer is licensed to transact insurance business in
8another state, this state may not require similar insurers domiciled in that other
9state to pay taxes greater in the aggregate than the aggregate amount of taxes that
10a domestic insurer is required to pay to that other state for the same year less the
11credits under ss. 76.634, 76.635, 76.636, 76.637, 76.638, and 76.655, except that the
12amount imposed shall not be less than the total of the amounts due under ss. 76.65
13(2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums,
14as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss.
1576.634, 76.635, 76.636, 76.637, 76.638, and 76.655 against that total, and except that
16the amount imposed shall not be less than the amount due under s. 601.93.
SB120, s. 32 17Section 32. 77.92 (4) of the statutes is amended to read:
SB120,13,818 77.92 (4) "Net business income," with respect to a partnership, means taxable
19income as calculated under section 703 of the Internal Revenue Code; plus the items
20of income and gain under section 702 of the Internal Revenue Code, including taxable
21state and municipal bond interest and excluding nontaxable interest income or
22dividend income from federal government obligations; minus the items of loss and
23deduction under section 702 of the Internal Revenue Code, except items that are not
24deductible under s. 71.21; plus guaranteed payments to partners under section 707
25(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),

1(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
2(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), and
3(8r); and plus or minus, as appropriate, transitional adjustments, depreciation
4differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
5excluding income, gain, loss, and deductions from farming. "Net business income,"
6with respect to a natural person, estate, or trust, means profit from a trade or
7business for federal income tax purposes and includes net income derived as an
8employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB120, s. 33 9Section 33. 560.2056 (2) of the statutes is amended to read:
SB120,13,1710 560.2056 (2) If the department of commerce certifies a taxpayer under sub. (1),
11the department of commerce shall determine the amount of credits to allocate to that
12taxpayer. The total amount of food processing plant and food warehouse investment
13credits allocated to taxpayers in any fiscal year 2009-10 may not exceed $600,000
14and the total amount of food processing plant and food warehouse investment credits
15allocated to taxpayers in fiscal year 2010-11, and in each fiscal year thereafter,
may
16not exceed $700,000 the amounts provided under ss. 71.07 (3rn) (c) 3., 71.28 (3rn) (c)
173., and 71.47 (3rn) (c) 3
.
SB120, s. 34 18Section 34. 560.207 (2) of the statutes is amended to read:
SB120,14,619 560.207 (2) If the department of commerce certifies a taxpayer under sub. (1),
20the department of commerce shall determine the amount of credits to allocate to that
21taxpayer. The total amount of dairy manufacturing facility investment credits
22allocated to taxpayers in any fiscal year 2007-08 may not exceed $600,000 and the
23total amount of dairy manufacturing facility investment credits allocated to
24taxpayers who are not members of dairy cooperatives in fiscal year 2008-09, and in
25each fiscal year thereafter, may not exceed $700,000. The total amount of dairy

1manufacturing facility investment credits allocated to taxpayers who are members
2of dairy cooperatives in fiscal year 2009-10 may not exceed $600,000 and the total
3amount of dairy manufacturing facility investment credits allocated to taxpayers
4who are members of dairy cooperatives in fiscal year 2010-11, and in each fiscal year
5thereafter,
may not exceed $700,000 the amounts provided under ss. 71.07 (3p) (c)
62m., 71.28 (3p) (c) 2m., and 71.47 (3p) (c) 2m
.
SB120, s. 35 7Section 35. 560.208 (2) of the statutes is amended to read:
SB120,14,148 560.208 (2) If the department of commerce certifies a taxpayer under sub. (1),
9the department of commerce shall determine the amount of credits to allocate to that
10taxpayer. The total amount of meat processing facility investment credits allocated
11to taxpayers in any fiscal year 2009-10 may not exceed $300,000 and the total
12amount of meat processing facility investment credits allocated to taxpayers in fiscal
13year 2010-11, and in each fiscal year thereafter,
may not exceed $700,000 the
14amounts provided under ss. 71.07 (3r) (c) 3., 71.28 (3r) (c) 3., and 71.47 (3r) (c) 3
.
SB120, s. 36 15Section 36. 560.295 of the statutes is created to read:
SB120,14,17 16560.295 Certification of investments in community development
17financial institutions.
(1) Definitions. In this section:
SB120,14,1918 (a) "Community development financial institution" means an entity that
19satisfies all of the following:
SB120,14,22201. The entity is certified by the fund under 12 CFR 1805.201 as meeting the
21eligibility requirements for a community development financial institution under 12
22CFR 1805.200
and 1805.201 (b).
SB120,14,2323 2. The entity is organized under the laws of this state.
SB120,14,2524 3. The entity uses qualified investments for which a person may be certified for
25tax credits under sub. (2) (a) for projects that are based in this state.
SB120,15,2
1(b) "Fund" means the Community Development Financial Institutions Fund
2established under 12 USC 4703 (a).
SB120,15,53 (c) 1. Subject to subd. 2., "qualified investment" means a deposit or loan that
4pays no interest to the person who made the deposit or loan, if the deposit or loan has
5a value of at least $10,000 and is made for a period of at least 60 months.
SB120,15,126 2. A community development financial institution that receives an investment
7described under subd. 1. shall have complete control over the entire investment
8amount, including any interest earned on the investment, for the duration of the
9investment period, but the investment may be subject to any additional terms and
10conditions of the investment agreement between the community development
11financial institution and the investor which are not inconsistent with the
12requirements of this section.
SB120,15,18 13(2) Certification; registration and reporting required. (a) Subject to the
14limits under sub. (4), the department may certify a person under this section to claim
15tax credits under s. 71.07 (5p), 71.28 (5p), 71.47 (5p), or 76.634 if the person applies
16to the department on a form prepared by the department and submits evidence
17satisfactory to the department that the person has made a qualified investment in
18a community development financial institution that is registered under par. (b).
SB120,15,2519 (b) 1. The department may register a community development financial
20institution if the community development financial institution applies to the
21department on a form prepared by the department. The department may revoke the
22registration of a community development financial institution if the entity no longer
23meets the eligibility requirements for certification as a community development
24financial institution by the fund or fails to comply with the requirements of this
25paragraph.
SB120,16,6
12. A community development financial institution registered under this section
2shall annually, within 90 days after the last day of the preceding calendar year,
3submit a report containing financial statements of the community development
4financial institution, prepared according to generally accepted accounting principles
5and including all of the following information for the preceding calendar year, to the
6department:
SB120,16,87 a. The material events certification form required by the federal department
8of the treasury.
SB120,16,119 b. Certification, in the form and manner prescribed by the department, that the
10community development financial institution satisfies the criteria under sub. (1) (a)
111. to 3.
SB120,16,1212 c. Any other information the department considers relevant.
SB120,16,15 13(3) Eligibility. (a) Except as provided in par. (b), a person certified under sub.
14(2) (a) is eligible to claim tax credits under s. 71.07 (5p), 71.28 (5p), 71.47 (5p), or
1576.634.
SB120,16,2316 (b) 1. A person certified under sub. (2) (a) who withdraws a qualified investment
17from a community development financial institution prior to the date of withdrawal
18specified in the written notice provided to the person under sub. (5) (b) and who does
19not immediately reinvest the proceeds of the qualified investment as a qualified
20investment in another community development financial institution shall add to the
21person's liability for taxes imposed under s. 71.02, 71.23, or 71.43, or fees imposed
22under s. 76.60, 76.63, 76.65, 76.66, or 76.67, one of the following percentages of the
23amount of the credits received under s. 71.07 (5p), 71.28 (5p), 71.47 (5p), or 76.634:
SB120,16,2524 a. If the withdrawal occurs during the first year after the date on which the
25person made the qualified investment, 100 percent.
SB120,17,2
1b. If the withdrawal occurs during the 2nd year after the date on which the
2person made the qualified investment, 75 percent.
SB120,17,43 c. If the withdrawal occurs during the 3rd year after the date on which the
4person made the qualified investment, 50 percent.
SB120,17,65 d. If the withdrawal occurs during the 4th year after the date on which the
6person made the qualified investment, 25 percent.
SB120,17,87 e. If the withdrawal occurs during the 5th year after the date on which the
8person made the qualified investment, 10 percent.
SB120,17,149 2. If the registration of a community development financial institution in which
10a person certified under sub. (2) (a) has made a qualified investment is revoked by
11the department, and not reinstated by the department within 120 days following the
12revocation, or if the entity fails to meet the eligibility requirements for more than 120
13consecutive days for certification as a community development financial institution
14by the fund, the person certified under sub. (2) (a) may do any of the following:
SB120,17,1515 a. Subject to subd. 1., withdraw the qualified investment.
SB120,17,1816 b. Immediately reinvest the proceeds of the qualified investment as a qualified
17investment in another community development financial institution for the duration
18of the investment period.
SB120,17,20 19(4) Limits. No more than $500,000 in tax benefits may be claimed under this
20section in any calendar year.
SB120,17,21 21(5) Duties of the department. The department shall do all of the following:
SB120,18,222 (a) Notify the department of revenue of every certification issued under sub.
23(2) (a) and include the dates on which any such certification is granted and the date
24on which the applicant may withdraw a qualified investment made in a community

1development financial institution, which date shall be no earlier than the first day
2of the 61st month after the qualified investment was made.
SB120,18,73 (b) Provide to each applicant for certification under sub. (2) (a) a dated written
4notice indicating the department's decision to grant or deny certification. If
5certification is granted, the notice shall include the date on which the applicant may
6withdraw the qualified investment, which date shall be no earlier than the first day
7of the 61st month after the qualified investment was made.
SB120,18,98 (c) Notify the department of revenue of each community development financial
9institution registered under sub. (2) (b).
SB120,18,1010 (d) Promulgate rules to administer this program.
SB120,18,1111 (End)
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