Amendment ASA1-AB1033

AB1033-ASA1,6,12 (b) Development opportunity zones. The development zones research credit under par. (a), as it applies to a person certified under s. 560.765 (3), applies to a person that conducts economic activity in a development opportunity zone under s. 560.795 (1) and that is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795 (2). A development opportunity zone credit under this paragraph may be calculated using expenses incurred by a claimant beginning on the effective date under s. 560.795 (2) (a) of the development opportunity zone designation of the area in which the claimant conducts economic activity.

AB1033-ASA1,6,15 (bm) Adjustments. Adjustments for acquisitions and dispositions of a major portion of a trade or business shall be made under section 41 of the internal revenue code as limited by this subsection.

AB1033-ASA1,6,17 (c) Annualization. In the case of any short taxable year, qualified research expenses shall be annualized as prescribed by the department of revenue.

AB1033-ASA1,6,22 (d) Proration. If a portion of qualified research expenses is incurred partly within and partly outside this state and the amount incurred in this state cannot be accurately determined, a portion of the qualified expenses shall be reasonably allocated to this state. Expenses incurred entirely outside this state for the benefit of research in this state are not allocable to this state under this paragraph.

AB1033-ASA1,6,25 (e) Change of business or ownership. In the case of a change in ownership or business of a person, section 383 of the internal revenue code, as limited by this subsection, applies to the carry-over of unused credits.

AB1033-ASA1,7,6 (f) Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB1033-ASA1,7,12 (g) Administration. The department of revenue has full power to administer the credits provided in this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to income and franchise taxes imposed in this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credits under this subsection.

AB1033-ASA1,7,14 (h) Timely claim. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

AB1033-ASA1,7,20 (i) Nonclaimants. The credits under this subsection may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under s. 71.22 (1), limited liability company, except a limited liability company treated as a corporation under s. 71.22 (1), or tax-option corporation or by partners, including partners of a publicly traded partnership, members of a limited liability company or shareholders of a tax-option corporation.

AB1033-ASA1, s. 15 Section 15. 71.07 (2ds) (c) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

AB1033-ASA1, s. 16 Section 16. 71.07 (2ds) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,8,3 71.07 (2ds) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (2di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB1033-ASA1, s. 17 Section 17. 71.08 (1) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,8,13 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2fd), (3m), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB1033-ASA1, s. 18 Section 18. 71.10 (4) (gd) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,8,17 71.10 (4) (gd) Development zones jobs credit under s. 71.07 (2dj) if the credit is based on activity in a zone under s. 560.797.

AB1033-ASA1, s. 19 Section 19. 71.10 (4) (ge) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,8,21 71.10 (4) (ge) Development zones sales tax credit under s. 71.07 (2ds) if the credit is based on activity in a zone under s. 560.797.

AB1033-ASA1, s. 20 Section 20. 71.10 (4) (gm) of the statutes is created to read:

AB1033-ASA1,8,23 71.10 (4) (gm) Development zones research credit under s. 71.07 (2dr).

AB1033-ASA1, s. 21 Section 21. 71.10 (4) (i) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,9,8 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), development zones sales tax credit under s. 71.07 (2ds) unless the credit is based on activity in a zone under s. 560.797, development zones jobs credit under s. 71.07 (2dj) unless the credit is based on activity in a zone under s. 560.797, earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB1033-ASA1, s. 22 Section 22. 71.28 (1dd) (a) 1. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,9,14 71.28 (1dd) (a) 1. "Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children or benefits provided at a facility for persons who are physically or mentally incapable of caring for themselves.

AB1033-ASA1, s. 23 Section 23. 71.28 (1dd) (a) 2. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,9,21 71.28 (1dd) (a) 2. "Employment-related day care expenses" means amounts paid or incurred by a claimant, during the 2-year period beginning with the day that the member of the targeted group begins work for the claimant, for providing or making day care center benefits available to a qualifying individual in order to enable a member of a targeted group to be employed by the claimant.

AB1033-ASA1, s. 24 Section 24. 71.28 (1dj) (am) 1. of the statutes is amended to read:

AB1033-ASA1,9,25 71.28 (1dj) (am) 1. Modify "member of a targeted group", as defined in section 51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to s. 109.07 (1m) and persons specified under 29 USC 1651 (a) and to require a member of a targeted group to be a resident of this state.

AB1033-ASA1, s. 25 Section 25. 71.28 (1dj) (am) 3. of the statutes is amended to read:

AB1033-ASA1,10,6 71.28 (1dj) (am) 3. Modify the rule for certification under section 51 (d) (16) (A) of the internal revenue code to allow certification within the 30-day 90-day period beginning with the first day of employment of the employe by the claimant.

AB1033-ASA1, s. 26 Section 26. 71.28 (1dj) (am) 4h. of the statutes is created to read:

AB1033-ASA1,10,13 71.28 (1dj) (am) 4h. Modify section 51 (a) of the internal revenue code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works employment position for service either in an unsubsidized position or in a trial job under s. 49.147 (3) and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant.

AB1033-ASA1, s. 27 Section 27. 71.28 (1dj) (am) 4i. of the statutes is created to read:

AB1033-ASA1,10,17 71.28 (1dj) (am) 4i. Modify section 51 (b) (3) of the internal revenue code so that the amount of the qualified first-year wages that may be taken into account is $13,000.

AB1033-ASA1, s. 28 Section 28. 71.28 (1dj) (am) 8m. of the statutes is amended to read:

AB1033-ASA1,10,24 71.28 (1dj) (am) 8m. For each person, whether or not he or she is a member of a targeted group, who is determined by the department of development to be a resident of the development zone in which he or she is employed, calculate a credit equal to 10% of the wages earned by such person during the first year 1st and 2nd years of the person's employment in the development zone, up to a maximum credit of $600 per year.

AB1033-ASA1, s. 29 Section 29. 71.28 (1dj) (d) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

AB1033-ASA1, s. 30 Section 30. 71.28 (1dj) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,11,7 71.28 (1dj) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB1033-ASA1, s. 31 Section 31. 71.28 (1dL) (ar) of the statutes is amended to read:

AB1033-ASA1,11,19 71.28 (1dL) (ar) If the credit under par. (a) is claimed for an amount expended to acquire property, the property must have been acquired by the claimant after the place where the property is located was designated a development zone under s. 560.71 and the completed project must be placed in service after the claimant is certified for tax benefits under s. 560.765 (3) and the property must not have been previously owned by the claimant or a related person during the period the development zone is in existence or during the 2 years prior to the designation of the development zone under s. 560.71. No credit is allowed for an amount expended to acquire property until the property, either in its original state as acquired by the claimant or as subsequently constructed, rehabilitated, remodeled or repaired, is placed in service.

AB1033-ASA1, s. 32 Section 32. 71.28 (1ds) (c) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

AB1033-ASA1, s. 33 Section 33. 71.28 (1ds) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,12,3 71.28 (1ds) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB1033-ASA1, s. 34 Section 34. 71.30 (3) (eb) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,12,7 71.30 (3) (eb) Development zones jobs credit under s. 71.28 (1dj) if the credit is based on activity in a zone under s. 560.797.

AB1033-ASA1, s. 35 Section 35. 71.30 (3) (ec) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,12,11 71.30 (3) (ec) Development zones sales tax credit under s. 71.28 (1ds) if the credit is based on activity in a zone under s. 560.797.

AB1033-ASA1, s. 36 Section 36. 71.30 (3) (f) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,12,19 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), the development zones sales tax credit under s. 71.28 (1ds) unless the credit is based on activity in a zone under s. 560.797, the development zones job credit under s. 71.28 (1dj) unless the credit is based on activity in a zone under s. 560.797 and estimated tax payments under s. 71.29.

AB1033-ASA1, s. 37 Section 37. 71.47 (1dd) (a) 1. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,12,25 71.47 (1dd) (a) 1. "Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children or benefits provided at a facility for persons who are physically incapable of caring for themselves.

AB1033-ASA1, s. 38 Section 38. 71.47 (1dd) (a) 2. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,13,7 71.47 (1dd) (a) 2. "Employment-related day care expenses" means amounts paid or incurred by a claimant, during the 2-year period beginning with the day that the member of the targeted group begins work for the claimants for providing or making day care center benefits available to a qualifying individual in order to enable a member of a targeted group to be employed by the claimant.

AB1033-ASA1, s. 39 Section 39. 71.47 (1dj) (am) 1. of the statutes is amended to read:

AB1033-ASA1,13,13 71.47 (1dj) (am) 1. Modify "member of a targeted group", as defined in section 51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to s. 109.07 (1m) and persons specified under 29 USC 1651 (a) and to require a member of a targeted group to be a resident of this state.

AB1033-ASA1, s. 40 Section 40. 71.47 (1dj) (am) 3. of the statutes is amended to read:

AB1033-ASA1,13,17 71.47 (1dj) (am) 3. Modify the rule for certification under section 51 (d) (16) (A) of the internal revenue code to allow certification within the 30-day 90-day period beginning with the first day of employment of the employe by the claimant.

AB1033-ASA1, s. 41 Section 41. 71.47 (1dj) (am) 4h. of the statutes is created to read:

AB1033-ASA1,13,24 71.47 (1dj) (am) 4h. Modify section 51 (a) of the internal revenue code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works employment position for service either in an unsubsidized position or in a trial job under s. 49.147 (3) and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant.

AB1033-ASA1, s. 42 Section 42. 71.47 (1dj) (am) 4i. of the statutes is created to read:

AB1033-ASA1,14,3 71.47 (1dj) (am) 4i. Modify section 51 (b) (3) of the internal revenue code so that the amount of the qualified first-year wages that may be taken into account is $13,000.

AB1033-ASA1, s. 43 Section 43. 71.47 (1dj) (am) 8m. of the statutes is amended to read:

AB1033-ASA1,14,10 71.47 (1dj) (am) 8m. For each person, whether or not he or she is a member of a targeted group, who is determined by the department of development to be a resident of the development zone in which he or she is employed, calculate a credit equal to 10% of the wages earned by such person during the first year 1st and 2nd years of the person's employment in the development zone, up to a maximum credit of $600 per year.

AB1033-ASA1, s. 44 Section 44. 71.47 (1dj) (d) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

AB1033-ASA1, s. 45 Section 45. 71.47 (1dj) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,14,17 71.47 (1dj) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB1033-ASA1, s. 46 Section 46. 71.47 (1dL) (ar) of the statutes is amended to read:

AB1033-ASA1,15,4 71.47 (1dL) (ar) If the credit under par. (a) is claimed for an amount expended to acquire property, the property must have been acquired by the claimant after the place where the property is located was designated a development zone under s. 560.71 and the completed project must be placed in service after the claimant is certified for tax benefits under s. 560.765 (3) and the property must not have been previously owned by the claimant or a related person during the period the development zone is in existence or during the 2 years prior to the designation of the development zone under s. 560.71. No credit is allowed for an amount expended to acquire property until the property, either in its original state as acquired by the claimant or as subsequently constructed, rehabilitated, remodeled or repaired, is placed in service.

AB1033-ASA1, s. 47 Section 47. 71.47 (1ds) (c) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

AB1033-ASA1, s. 48 Section 48. 71.47 (1ds) (h) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,15,11 71.47 (1ds) (h) For claims based on activity in a zone under s. 560.797, the The rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB1033-ASA1, s. 49 Section 49. 71.49 (1) (eb) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,15,15 71.49 (1) (eb) Development zones jobs credit under s. 71.47 (1dj) if the credit is based on activity in a zone under s. 560.797.

AB1033-ASA1, s. 50 Section 50. 71.49 (1) (ec) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,15,19 71.49 (1) (ec) Development zones sales tax credit under s. 72.47 71.47 (1ds) if the credit is based on activity in a zone under s. 560.797.

AB1033-ASA1, s. 51 Section 51. 71.49 (1) (f) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,16,2 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), development zones sales tax credit under s. 71.47 (1ds) unless the credit is based on activity in a zone under s. 560.797, development zones jobs credit under s. 71.47 (1dj) unless the credit is based on activity in a zone under s. 560.797 and estimated tax payments under s. 71.48.

AB1033-ASA1, s. 52 Section 52. 73.03 (35) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,16,12 73.03 (35) To deny a portion of a credit claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr) or (2ds), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) or (4) (am) or 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds) or (4) (am) if granting the full amount claimed would violate the requirement under s. 560.75 (9) or 560.797 (4) (e) or would bring the total of the credits granted to that claimant under s. 560.75 (9) or 560.797 (4) (e), or the total of the credits granted to that claimant under all of those subsections, over the limit for that claimant under s. 560.768, 560.795 (2) (b) or 560.797 (5) (b).

AB1033-ASA1, s. 53 Section 53. 77.92 (4) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,16,25 77.92 (4) "Net business income", with respect to a partnership or limited liability company, means taxable income as calculated under section 703 of the internal revenue code; plus the items of income and gain under section 702 of the internal revenue code; minus the items of loss and deduction under section 702 of the internal revenue code; plus payments treated as not made to partners under section 707 (a) of the internal revenue code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr) and (2ds); but excluding income, gain, loss and deductions from farming. "Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employe as defined in section 3121 (d) (3) of the internal revenue code.

AB1033-ASA1, s. 54 Section 54. 560.70 (4) of the statutes is amended to read:

AB1033-ASA1,17,4 560.70 (4) "Local governing body" means the governing body of one or more cities, villages or, towns or counties or the elected governing body of a federally recognized American Indian tribe or band in this state.

AB1033-ASA1, s. 55 Section 55. 560.70 (6) of the statutes is amended to read:

AB1033-ASA1,17,8 560.70 (6) "Target population" means the residents of a development zone and persons who are members of targeted groups for the purposes of the credit under ss. 71.07 (2dj), 71.28 (1dj) and 71.47 (1dj).

AB1033-ASA1, s. 56 Section 56. 560.70 (7) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1033-ASA1,17,19 560.70 (7) "Tax benefits" means the development zones day care credit under ss. 71.07 (2dd), 71.28 (1dd) and 71.47 (1dd), the development zones environmental remediation credit under ss. 71.07 (2de), 71.28 (1de) and 71.47 (1de), the development zones investment credit under ss. 71.07 (2di), 71.28 (1di) and 71.47 (1di), the development zones jobs credit under ss. 71.07 (2dj), 71.28 (1dj) and 71.47 (1dj), the development zones location credit under ss. 71.07 (2dL), 71.28 (1dL) and 71.47 (1dL), the development zones sales tax credit under ss. 71.07 (2ds), 71.28 (1ds) and 71.47 (1ds), the development zones research credit under s. 71.07 (2dr) and the additional 5% credit under ss. 71.28 (4) and 71.47 (4).

AB1033-ASA1, s. 57 Section 57. 560.71 (1) (cm) of the statutes is repealed.