SB526,7,1919 71.28 (5n) (a) Definitions. In this subsection:
SB526,8,220 1. "Agriculture property factor" means a fraction, the numerator of which is the
21average value of the claimant's real property and improvements assessed under s.
2270.32 (2) (a) 4., owned or rented and used in this state by the claimant during the
23taxable year to produce, grow, or extract qualified production property, and the
24denominator of which is the average value of all of the claimant's real property and

1improvements owned or rented during the taxable year and used by the claimant to
2produce, grow, or extract qualified production property.
SB526,8,33 2. "Claimant" means a person who files a claim under this subsection.
SB526,8,74 3. "Direct costs" include all of the claimant's ordinary and necessary expenses
5paid or incurred during the taxable year in carrying on the trade or business that are
6deductible under section 162 of the Internal Revenue Code and identified as direct
7costs in the claimant's managerial or cost accounting records.
SB526,8,128 4. "Indirect costs" include all of the claimant's ordinary and necessary expenses
9paid or incurred during the taxable year in carrying on the trade or business that are
10deductible under section 162 of the Internal Revenue Code, other than cost of goods
11sold and direct costs, and identified as indirect costs in the claimant's managerial or
12cost accounting records.
SB526,8,1913 5. a. "Manufacturing property factor" means a fraction, the numerator of which
14is the average value of the claimant's real and personal property assessed under s.
1570.995, owned or rented and used in this state by the claimant during the taxable
16year to manufacture qualified production property, and the denominator of which is
17the average value of all the claimant's real and personal property owned or rented
18during the taxable year and used by the claimant to manufacture qualified
19production property.
SB526,8,2320 b. For purposes of subd. 6. a., property owned by the claimant is valued at its
21original cost and property rented by the claimant is valued at an amount equal to the
22annual rental paid by the claimant, less any annual rental received by the claimant
23from sub-rentals, multiplied by 8.
SB526,9,324 c. For purposes of subd. 6. a., the average value of property is determined by
25averaging the values at the beginning and ending of the taxable year, except that the

1secretary of revenue may require the averaging of monthly values during the taxable
2year, if such averaging is reasonably required to properly reflect the average value
3of the claimant's property.
SB526,9,54 6. "Production gross receipts" means gross receipts from the lease, rental,
5license, sale, exchange, or other disposition of qualified production property.
SB526,9,146 7. "Production gross receipts factor" means a fraction, the numerator of which
7is production gross receipts and the denominator of which is all gross income from
8whatever source, except for those items specifically excluded under the Internal
9Revenue Code as adopted by this state and otherwise excluded under Wisconsin law.
10For purposes of the denominator, income includes gross sales, gross dividends, gross
11interest income, gross rents, gross royalties, the gross sales price from the disposition
12of capital assets and business assets, gross income from pass-through entities, and
13all other gross receipts that are included in income, before apportionment for
14Wisconsin tax purposes under s. 71.25 (6).
SB526,9,1915 8. "Qualified production activities income" means the amount of the claimant's
16production gross receipts for the taxable year that exceeds the sum of the cost of goods
17sold that are allocable to such receipts, the direct costs that are allocable to such
18receipts, and the indirect costs multiplied by the production gross receipts factor.
19"Qualified production activities income" does not include any of the following:
SB526,9,2020 a. Income from film production.
SB526,9,2221 b. Income from producing, transmitting, or distributing electricity, natural gas,
22or potable water.
SB526,9,2323 c. Income from constructing real property.
SB526,9,2524 d. Income from engineering or architectural services performed with respect
25to constructing real property.
SB526,10,2
1e. Income from the sale of food and beverages prepared by the claimant at a
2retail establishment.
SB526,10,43 f. Income from the lease, rental, license, sale, exchange, or other disposition of
4land.
SB526,10,55 9. "Qualified production property" means either of the following:
SB526,10,76 a. Tangible personal property manufactured in whole or in part by the claimant
7on property that is assessed as manufacturing property under s. 70.995.
SB526,10,108 b. Tangible personal property produced, grown, or extracted in whole or in part
9by the claimant on or from property assessed as agricultural property under s. 70.32
10(2) (a) 4.
SB526, s. 14 11Section 14. 71.28 (5n) (d) of the statutes, as created by 2011 Wisconsin Act 32,
12is renumbered 71.28 (5n) (d) 1.
SB526, s. 15 13Section 15. 71.28 (5n) (d) 2. of the statutes is created to read:
SB526,10,1914 71.28 (5n) (d) 2. Except as provided in subd. 3., for purposes of determining a
15claimant's eligible qualified production activities income under this subsection, the
16claimant shall multiply the claimant's qualified production activities income from
17property manufactured by the claimant by the manufacturing property factor and
18qualified production activities income from property produced, grown, or extracted
19by the claimant by the agriculture property factor.
SB526, s. 16 20Section 16. 71.28 (5n) (d) 3. of the statutes is created to read:
SB526,10,2321 71.28 (5n) (d) 3. The amount of the eligible qualified production activities
22income that a claimant may claim in computing the credit under par. (b) is the lesser
23of the following:
SB526,10,2524 a. The eligible qualified production activities income determined under subd.
252.
SB526,11,1
1b. Income apportioned to this state under s. 71.25 (5), (6), and (6m).
SB526,11,22 c. Income determined to be taxable under s. 71.255 (2).
SB526, s. 17 3Section 17. 71.30 (3) (dn) of the statutes, as created by 2011 Wisconsin Act 32,
4is amended to read:
SB526,11,65 71.30 (3) (dn) Qualified production activities Manufacturing and agriculture
6credit under s. 71.28 (5n).
SB526, s. 18 7Section 18. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32,
8is amended to read:
SB526,11,129 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
11(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
12(5k), (5n), (5r), (5rm), and (8r) and passed through to shareholders.
SB526, s. 19 13Section 19. 71.34 (1k) (m) of the statutes is created to read:
SB526,11,1614 71.34 (1k) (m) An addition shall be made for the amount computed under s.
1571.28 (5n) in the previous taxable year that is not included in federal ordinary
16business income.
SB526, s. 20 17Section 20. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
1832
, is amended to read:
SB526,11,2519 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
20computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
21(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), and (9s) and not passed
22through by a partnership, limited liability company, or tax-option corporation that
23has added that amount to the partnership's, limited liability company's, or
24tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
25of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB526, s. 21
1Section 21. 71.47 (5n) of the statutes, as created by 2011 Wisconsin Act 32, is
2repealed.
SB526, s. 22 3Section 22. 71.49 (1) (dn) of the statutes, as created by 2011 Wisconsin Act 32,
4is repealed.
SB526,12,55 (End)
Loading...
Loading...