AB16,4,2521 71.21 (4) (a) The amount of the credits computed by a partnership under s.
2271.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p),
23(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r),
24(5rm), (6n), and (8r) and passed through to partners shall be added to the
25partnership's income.
AB16,6
1Section 6. 71.26 (2) (a) 4. of the statutes is amended to read:
AB16,5,82 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
3(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
4(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r),
5and (9s) and not passed through by a partnership, limited liability company, or
6tax-option corporation that has added that amount to the partnership's, limited
7liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
8(g).
AB16,7 9Section 7. 71.28 (5p) of the statutes is created to read:
AB16,5,1110 71.28 (5p) Hospitality business advertising credit. (a) Definitions. In this
11subsection:
AB16,5,1412 1. "Advertising" means radio and television commercials and advertising that
13appears in printed form, including billboards and advertisements in newspapers and
14magazines.
AB16,5,1515 2. "Claimant" means a person who files a claim under this subsection.
AB16,5,1916 3. "Hospitality business" means a hospitality business located in this state,
17including a business that is classified in the standard industrial classification
18manual, 1987 edition, published by the U.S. office of management and budget, under
19any of the following industry numbers:
AB16,5,2020 a. 5812 — Eating places.
AB16,5,2121 b. 5813 — Drinking places.
AB16,5,2222 c. 7011 — Hotels and motels.
AB16,5,2323 d. 7032 — Sporting and recreational camps.
AB16,5,2424 e. 7033 — Recreational vehicle parks and campsites.
AB16,5,2525 f. 7922 — Theatrical producers and miscellaneous theatrical services.
AB16,6,2
1g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
2groups.
AB16,6,33 h. 7948 — Racing, including track operation.
AB16,6,44 i. 7992 — Public golf courses.
AB16,6,55 j. 7996 — Amusement parks.
AB16,6,66 k. 7997 — Membership sports and recreation clubs.
AB16,6,77 L. 7999 — Amusement and recreational services, not elsewhere classified.
AB16,6,138 (b) Filing claims. Subject to the limitations provided in this subsection, a
9claimant may claim as a credit against the tax imposed under s. 71.23, up to the
10amount of the tax, an amount equal to 10 percent of the amount the claimant spent
11in the taxable year on advertising outside of this state to promote the claimant's
12hospitality business, if the cost of the advertising was directly incurred by the
13claimant's business operations in this state.
AB16,6,2114 (c) Limitations. Partnerships, limited liability companies, and tax-option
15corporations may not claim the credit under this subsection, but the eligibility for,
16and the amount of, the credit are based on their payment of amounts under par. (b).
17A partnership, limited liability company, or tax-option corporation shall compute
18the amount of credit that each of its partners, members, or shareholders may claim
19and shall provide that information to each of them. Partners, members of limited
20liability companies, and shareholders of tax-option corporations may claim the
21credit in proportion to their ownership interests.
AB16,6,2322 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
23sub. (4), applies to the credit under this subsection.
AB16,8 24Section 8. 71.30 (3) (dr) of the statutes is created to read:
AB16,6,2525 71.30 (3) (dr) Hospitality business advertising credit under s. 71.28 (5p).
AB16,9
1Section 9. 71.34 (1k) (g) of the statutes is amended to read:
AB16,7,52 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
3corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
4(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
5(5k), (5p), (5r), (5rm), (6n), and (8r) and passed through to shareholders.
AB16,10 6Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:
AB16,7,137 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
8computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
9(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), and (9s) and not
10passed through by a partnership, limited liability company, or tax-option
11corporation that has added that amount to the partnership's, limited liability
12company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
13the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB16,11 14Section 11. 71.47 (5p) of the statutes is created to read:
AB16,7,1615 71.47 (5p) Hospitality business advertising credit. (a) Definitions. In this
16subsection:
AB16,7,1917 1. "Advertising" means radio and television commercials and advertising that
18appears in printed form, including billboards and advertisements in newspapers and
19magazines.
AB16,7,2020 2. "Claimant" means a person who files a claim under this subsection.
AB16,7,2421 3. "Hospitality business" means a hospitality business located in this state,
22including a business that is classified in the standard industrial classification
23manual, 1987 edition, published by the U.S. office of management and budget, under
24any of the following industry numbers:
AB16,7,2525 a. 5812 — Eating places.
AB16,8,1
1b. 5813 — Drinking places.
AB16,8,22 c. 7011 — Hotels and motels.
AB16,8,33 d. 7032 — Sporting and recreational camps.
AB16,8,44 e. 7033 — Recreational vehicle parks and campsites.
AB16,8,55 f. 7922 — Theatrical producers and miscellaneous theatrical services.
AB16,8,76 g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
7groups.
AB16,8,88 h. 7948 — Racing, including track operation.
AB16,8,99 i. 7992 — Public golf courses.
AB16,8,1010 j. 7996 — Amusement parks.
AB16,8,1111 k. 7997 — Membership sports and recreation clubs.
AB16,8,1212 L. 7999 — Amusement and recreational services, not elsewhere classified.
AB16,8,1813 (b) Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the tax imposed under s. 71.43, up to the
15amount of the tax, an amount equal to 10 percent of the amount the claimant spent
16in the taxable year on advertising outside of this state to promote the claimant's
17hospitality business, if the cost of the advertising was directly incurred by the
18claimant's business operations in this state.
AB16,9,219 (c) Limitations. Partnerships, limited liability companies, and tax-option
20corporations may not claim the credit under this subsection, but the eligibility for,
21and the amount of, the credit are based on their payment of amounts under par. (b).
22A partnership, limited liability company, or tax-option corporation shall compute
23the amount of credit that each of its partners, members, or shareholders may claim
24and shall provide that information to each of them. Partners, members of limited

1liability companies, and shareholders of tax-option corporations may claim the
2credit in proportion to their ownership interests.
AB16,9,43 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
4s. 71.28 (4), applies to the credit under this subsection.
AB16,12 5Section 12. 71.49 (1) (dn) of the statutes is created to read:
AB16,9,66 71.49 (1) (dn) Hospitality business advertising credit under s. 71.47 (5p).
AB16,13 7Section 13. 77.92 (4) of the statutes is amended to read:
AB16,9,238 77.92 (4) "Net business income," with respect to a partnership, means taxable
9income as calculated under section 703 of the Internal Revenue Code; plus the items
10of income and gain under section 702 of the Internal Revenue Code, including taxable
11state and municipal bond interest and excluding nontaxable interest income or
12dividend income from federal government obligations; minus the items of loss and
13deduction under section 702 of the Internal Revenue Code, except items that are not
14deductible under s. 71.21; plus guaranteed payments to partners under section 707
15(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
16(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
17(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm),
18(6n), and (8r); and plus or minus, as appropriate, transitional adjustments,
19depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and
20(19); but excluding income, gain, loss, and deductions from farming. "Net business
21income," with respect to a natural person, estate, or trust, means profit from a trade
22or business for federal income tax purposes and includes net income derived as an
23employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
AB16,14 24Section 14. Initial applicability.
AB16,10,4
1(1) This act first applies to taxable years beginning on January 1 of the year
2in which this subsection takes effect, except that if this subsection takes effect after
3July 31 this act first applies to taxable years beginning on January 1 of the year
4following the year in which this subsection takes effect.
AB16,10,55 (End)
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