SB970,8,1411 c. Uses a system for inputting, processing, transmitting, or storing information
12or data in which users of the system are able to respond to the system by inputting,
13processing, transmitting, or storing information or data in response to the
14information or data provided to them through the system.
SB970,8,1815 d. Uses communication tools to store, transmit, distribute, and deliver
16information and data, including distributed networks such as the Internet and
17physical media such as compact discs, CD-ROM, DVD, and other removable storage
18drives or devices.
SB970,8,2019 3. “Digital interactive media or entertainment” does not include any of the
20following:
SB970,8,2221 a. Software designed and developed primarily for the internal or operational
22purposes of an entity.
SB970,9,223 b. Largely static Internet sites designed primarily to provide information about
24a person, business, company, or firm, including Internet sites that are primarily

1social media, user generated videos, podcasting, interactive advertising, or
2journalism.
SB970,9,43 c. Products or services regulated under chs. 562 to 569 or any software or
4application primarily involving gambling or wagering.
SB970,9,55 d. Software or applications that contain content in violation of s. 944.21.
SB970,9,86 4. “Eligible expenditures” means expenditures in this state directly related to
7qualified activities and that have economic substance and a business purpose,
8including all of the following:
SB970,9,129 a. Testing software, source code development, patches, updates, sprites,
103-dimensional models, engine development and other back-end programming
11activities, performance and motion capture, audio production, tool development,
12original scoring, and level design.
SB970,9,1313 b. Photography, sound synchronization, lighting, and related services.
SB970,9,1514 c. Information technology support, data analysis, and activities related to a
15community of users of digital interactive media or entertainment.
SB970,9,1616 d. Leases of facilities and equipment.
SB970,9,1717 e. Prepackaged audio files, video files, photographic files, or libraries.
SB970,9,1818 f. Licenses to use prerecorded audio files, video files, or photographic files.
SB970,9,2019 g. Development associated with producing audio files and video files used in
20the production of end products of digital interactive media or entertainment.
SB970,9,2221 h. Accountants and lawyers whose work is directly related to qualified
22activities and who are licensed or otherwise authorized to practice in this state.
SB970,9,2323 5. “Eligible expenditures” does not include any of the following:
SB970,9,2424 a. Expenditures related to marketing, promotion, or distribution.
SB970,10,2
1b. Administrative, payroll, or management services that are not directly
2related to management of qualified activities.
SB970,10,33 c. Any expenditure that is later reimbursed by the state.
SB970,10,44 d. Costs related to the transfer of tax credits.
SB970,10,65 e. Amounts that are paid to persons as a result of their participation in profits
6from a digital interactive media or entertainment production.
SB970,10,77 f. Any reimbursement required under s. 71.748 (2).
SB970,10,88 g. Interest expenses for loans.
SB970,10,109 h. Any expenditure incurred solely to increase the amount of the credit under
10this subsection and that involves self-dealing or the claimant inflating prices.
SB970,10,1211 i. Costs incurred for food or entertainment expenses not involved in qualified
12activities.
SB970,10,1413 6. “Qualified activities” means creating digital interactive media or
14entertainment, including updates, subsequent editions, new seasons, and sequels.
SB970,10,1715 (b) Filing claims. Subject to the limitations provided in this subsection, for
16taxable years beginning after December 31, 2023, a claimant may claim as a credit
17against the tax imposed under s. 71.23 any of the following amounts:
SB970,10,2118 1. An amount equal to 30 percent of the salary or wages paid by the claimant
19in the taxable year to the claimant's employees who were residents of this state at
20the time that they were paid for services rendered in this state to produce digital
21interactive media or entertainment.
SB970,10,2322 2. An amount equal to 30 percent of the eligible expenditures, other than salary
23or wages described in subd. 1., paid by the claimant in the taxable year.
SB970,11,224 (c) Limitations. 1. No credit may be allowed under this subsection unless the
25claimant files an application with the department, at the time and in the manner

1prescribed by the department, and the department approves the application. The
2claimant shall submit a copy of the approved application with the claimant's return.
SB970,11,103 2. Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of amounts under par. (b). A partnership,
6limited liability company, or tax-option corporation shall compute the amount of
7credit that each of its partners, members, or shareholders may claim and shall
8provide that information to each of them. Partners, members of limited liability
9companies, and shareholders of tax-option corporations may claim the credit in
10proportion to their ownership interest.
SB970,11,1211 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
12under sub. (4), applies to the credits under this subsection.
SB970,11,1713 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
14due under this chapter or no tax is due under this chapter, the amount of the claim
15not used to offset the tax due shall be certified by the department of revenue to the
16department of administration for payment by check, share draft, or other draft
17drawn from the appropriation account under s. 20.835 (2) (de).
SB970,8 18Section 8. 71.30 (3) (f) of the statutes is amended to read:
SB970,11,2419 71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs
20credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics
21and information technology manufacturing zone credit under s. 71.28 (3wm),
22business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k)
231., digital interactive media credit under s. 71.28 (11), and estimated tax payments
24under s. 71.29.
SB970,9 25Section 9. 71.34 (1k) (g) of the statutes is amended to read:
SB970,12,4
171.34 (1k) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
3(3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (11) and
4passed through to shareholders.
SB970,10 5Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:
SB970,12,126 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
7computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i),
8(5j), (5k), (5r), (5rm), (6n), and (10), and (11) and not passed through by a partnership,
9limited liability company, or tax-option corporation that has added that amount to
10the partnership's, limited liability company's, or tax-option corporation's income
11under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
12(3), (3t), (4), (4m), and (5).
SB970,11 13Section 11. 71.47 (11) of the statutes is created to read:
SB970,12,1514 71.47 (11) Digital interactive media credit. (a) Definitions. In this
15subsection:
SB970,12,2116 1. “Claimant” means a person who engages in qualified activities, owns a
17copyright in digital interactive media or entertainment or has contracted directly
18with the copyright owner or a person acting on behalf of the copyright owner, has a
19viable plan for the commercial distribution of the digital interactive media or
20entertainment, as determined by the department, and files a claim under this
21subsection.
SB970,12,2422 2. “Digital interactive media or entertainment” means a product or platform
23intended for commercial production, use, or distribution, that has primarily an
24entertainment purpose, and that satisfies all of the following:
SB970,13,2
1a. Contains at least 2 of the following types of data: text, sound, fixed images,
2animated images, video, or 3-dimensional geometry.
SB970,13,53 b. Uses discrete values that are ordinarily symbolized numerically to represent
4information for input, processing, transmission, and storage, including information
5input, processed, transmitted, and stored via the Internet.
SB970,13,96 c. Uses a system for inputting, processing, transmitting, or storing information
7or data in which users of the system are able to respond to the system by inputting,
8processing, transmitting, or storing information or data in response to the
9information or data provided to them through the system.
SB970,13,1310 d. Uses communication tools to store, transmit, distribute, and deliver
11information and data, including distributed networks such as the Internet and
12physical media such as compact discs, CD-ROM, DVD, and other removable storage
13drives or devices.
SB970,13,1514 3. “Digital interactive media or entertainment” does not include any of the
15following:
SB970,13,1716 a. Software designed and developed primarily for the internal or operational
17purposes of an entity.
SB970,13,2118 b. Largely static Internet sites designed primarily to provide information about
19a person, business, company, or firm, including Internet sites that are primarily
20social media, user generated videos, podcasting, interactive advertising, or
21journalism.
SB970,13,2322 c. Products or services regulated under chs. 562 to 569 or any software or
23application primarily involving gambling or wagering.
SB970,13,2424 d. Software or applications that contain content in violation of s. 944.21.
SB970,14,3
14. “Eligible expenditures” means expenditures in this state directly related to
2qualified activities and that have economic substance and a business purpose,
3including all of the following:
SB970,14,74 a. Testing software, source code development, patches, updates, sprites,
53-dimensional models, engine development and other back-end programming
6activities, performance and motion capture, audio production, tool development,
7original scoring, and level design.
SB970,14,88 b. Photography, sound synchronization, lighting, and related services.
SB970,14,109 c. Information technology support, data analysis, and activities related to a
10community of users of digital interactive media or entertainment.
SB970,14,1111 d. Leases of facilities and equipment.
SB970,14,1212 e. Prepackaged audio files, video files, photographic files, or libraries.
SB970,14,1313 f. Licenses to use prerecorded audio files, video files, or photographic files.
SB970,14,1514 g. Development associated with producing audio files and video files used in
15the production of end products of digital interactive media or entertainment.
SB970,14,1716 h. Accountants and lawyers whose work is directly related to qualified
17activities and who are licensed or otherwise authorized to practice in this state.
SB970,14,1818 5. “Eligible expenditures” does not include any of the following:
SB970,14,1919 a. Expenditures related to marketing, promotion, or distribution.
SB970,14,2120 b. Administrative, payroll, or management services that are not directly
21related to management of qualified activities.
SB970,14,2222 c. Any expenditure that is later reimbursed by the state.
SB970,14,2323 d. Costs related to the transfer of tax credits.
SB970,14,2524 e. Amounts that are paid to persons as a result of their participation in profits
25from a digital interactive media or entertainment production.
SB970,15,1
1f. Any reimbursement required under s. 71.748 (2).
SB970,15,22 g. Interest expenses for loans.
SB970,15,43 h. Any expenditure incurred solely to increase the amount of the credit under
4this subsection and that involves self-dealing or the claimant inflating prices.
SB970,15,65 i. Costs incurred for food or entertainment expenses not involved in qualified
6activities.
SB970,15,87 6. “Qualified activities” means creating digital interactive media or
8entertainment, including updates, subsequent editions, new seasons, and sequels.
SB970,15,119 (b) Filing claims. Subject to the limitations provided in this subsection, for
10taxable years beginning after December 31, 2023, a claimant may claim as a credit
11against the tax imposed under s. 71.43 any of the following amounts:
SB970,15,1512 1. An amount equal to 30 percent of the salary or wages paid by the claimant
13in the taxable year to the claimant's employees who were residents of this state at
14the time that they were paid for services rendered in this state to produce digital
15interactive media or entertainment.
SB970,15,1716 2. An amount equal to 30 percent of the eligible expenditures, other than salary
17or wages described in subd. 1., paid by the claimant in the taxable year.
SB970,15,2118 (c) Limitations. 1. No credit may be allowed under this subsection unless the
19claimant files an application with the department, at the time and in the manner
20prescribed by the department, and the department approves the application. The
21claimant shall submit a copy of the approved application with the claimant's return.
SB970,16,422 2. Partnerships, limited liability companies, and tax-option corporations may
23not claim the credit under this subsection, but the eligibility for, and the amount of,
24the credit are based on their payment of amounts under par. (b). A partnership,
25limited liability company, or tax-option corporation shall compute the amount of

1credit that each of its partners, members, or shareholders may claim and shall
2provide that information to each of them. Partners, members of limited liability
3companies, and shareholders of tax-option corporations may claim the credit in
4proportion to their ownership interest.
SB970,16,65 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
6credit under s. 71.28 (4), applies to the credits under this subsection.
SB970,16,117 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
8due under this chapter or no tax is due under this chapter, the amount of the claim
9not used to offset the tax due shall be certified by the department of revenue to the
10department of administration for payment by check, share draft, or other draft
11drawn from the appropriation account under s. 20.835 (2) (de).
SB970,12 12Section 12. 71.49 (1) (f) of the statutes is amended to read:
SB970,16,1713 71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs
14credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
15development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., digital
16interactive media credit under s. 71.47 (11),
and estimated tax payments under s.
1771.48.
SB970,13 18Section 13. 71.748 of the statutes is created to read:
SB970,16,21 1971.748 Digital interactive media credit audits. (1) In this section,
20“claimant” has the meaning given in s. 71.07 (11) (a) 1., 71.28 (11) (a) 1., or 71.47 (11)
21(a) 1., as the context requires.
SB970,17,2 22(2) A claimant shall reimburse the department for any audit initiated by the
23department, and for all costs incurred by the department in reviewing an audit
24conducted by an auditor certified under sub. (3) (a), relating to the credits under s.
2571.07 (11), 71.28 (11), or 71.47 (11), including audits required under s. 73.03 (78) (a)

12. This subsection does not apply to routine audits of a claimant's entire return that
2include review of credits claimed under s. 71.07 (11), 71.28 (11), or 71.47 (11).
SB970,17,6 3(3) (a) The department shall certify as eligible to conduct an audit required
4under s. 73.03 (78) (a) 2. a certified public accountant that submits an application to
5the department in the form and manner prescribed by the department and satisfies
6all of the following:
SB970,17,77 1. The applicant is licensed as a certified public accountant under ch. 442.
SB970,17,108 2. The applicant is capable of conducting audits required under s. 73.03 (78) (a)
92. according to the requirements under s. 73.03 (78) (b) and any rules promulgated
10related to the conduct of those audits and agrees to comply with those rules.
SB970,17,1211 3. The applicant successfully completes any training required by the
12department.
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