Amendment ASA1-AB100

AB100-ASA1, s. 1412 Section 1412. 71.47 (1dm) (hm) of the statutes is amended to read:

AB100-ASA1,682,15 71.47 (1dm) (hm) Credits claimed A claimant may claim the credit under this subsection, including any credits carried over, may be offset only against the amount of the tax otherwise due under this subchapter attributable to income from the business operations of the claimant in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset credits, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income; and against the tax attributable to income from directly related business operations of the claimant.

AB100-ASA1, s. 1413 Section 1413. 71.47 (1dx) (a) 5. of the statutes is amended to read:

AB100-ASA1,683,5 71.47 (1dx) (a) 5. "Member of a targeted group" means a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient; , if the person has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

AB100-ASA1, s. 1414 Section 1414. 71.47 (1dx) (b) (intro.) of the statutes is amended to read:

AB100-ASA1,683,12 71.47 (1dx) (b) Credit. (intro.) Except or as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or 560.798 (3), any person may claim as a credit against the taxes imposed on the person's income from the person's business activities in a development zone otherwise due under this chapter the following amounts:

AB100-ASA1, s. 1419 Section 1419. 71.47 (2m) (a) 1. b. of the statutes is amended to read:

AB100-ASA1,683,17 71.47 (2m) (a) 1. b. For partnerships, except publicly traded partnerships treated as corporations under s. 71.22 (1) (1k), or limited liability companies, except limited liability companies treated as corporations under s. 71.22 (1) (1k), "claimant" means each individual partner or member.

AB100-ASA1, s. 1420 Section 1420. 71.47 (3n) (title) of the statutes is amended to read:

AB100-ASA1,683,19 71.47 (3n) (title) Dairy and livestock farm investment credit.

AB100-ASA1, s. 1424b Section 1424b. 71.47 (3n) (a) 2. (intro.) of the statutes is amended to read:

AB100-ASA1,684,2 71.47 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010:

AB100-ASA1, s. 1424c Section 1424c. 71.47 (3n) (a) 4. of the statutes is created to read:

AB100-ASA1,684,6 71.47 (3n) (a) 4. "Livestock" means cattle, not including dairy animals; swine; poultry, not including farm-raised game birds or ratites; fish that are raised in aquaculture facilities; sheep; and goats.

AB100-ASA1, s. 1424d Section 1424d. 71.47 (3n) (a) 5. of the statutes is created to read:

AB100-ASA1,684,13 71.47 (3n) (a) 5. "Livestock farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for livestock housing, confinement, feeding, or waste management, including the following, if used exclusively related to livestock and if acquired and placed in service in this state during taxable years that begin after December 31, 2005, and before January 1, 2012:

AB100-ASA1,684,14 a. Birthing structures.

AB100-ASA1,684,15 b. Rearing structures.

AB100-ASA1,684,16 c. Feedlot structures.

AB100-ASA1,684,17 d. Feed storage and handling equipment.

AB100-ASA1,684,18 e. Fences.

AB100-ASA1,684,19 f. Watering facilities.

AB100-ASA1,684,20 g. Scales.

AB100-ASA1,684,21 h. Manure pumping and storage facilities.

AB100-ASA1,684,22 i. Digesters.

AB100-ASA1,684,23 j. Equipment used to produce energy.

AB100-ASA1,684,24 k. Fish hatchery buildings.

AB100-ASA1,684,25 L. Fish processing buildings.

AB100-ASA1,685,1 m. Fish rearing ponds.

AB100-ASA1, s. 1424e Section 1424e. 71.47 (3n) (a) 6. of the statutes is created to read:

AB100-ASA1,685,5 71.47 (3n) (a) 6. a. For taxable years that begin after December 31, 2003, and before January 1, 2006, "used exclusively," related to dairy animals, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1,685,8 b. For taxable years that begin after December 31, 2005, and before January 1, 2010, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1,685,11 c. For taxable years that begin after December 31, 2009, and before January 1, 2012, "used exclusively," related to livestock, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1, s. 1425b Section 1425b. 71.47 (3n) (b) of the statutes is renumbered 71.47 (3n) (b) 1.

AB100-ASA1, s. 1425c Section 1425c. 71.47 (3n) (b) 2. of the statutes is created to read:

AB100-ASA1,685,19 71.47 (3n) (b) 2. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2005, and before January 1, 2012, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 10 percent of the amount the claimant paid in the taxable year for livestock farm modernization or expansion related to the operation of the claimant's livestock farm.

AB100-ASA1, s. 1425d Section 1425d. 71.47 (3n) (e) of the statutes is renumbered 71.47 (3n) (e) 1. and amended to read:

AB100-ASA1,686,5 71.47 (3n) (e) 1. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB100-ASA1, s. 1425e Section 1425e. 71.47 (3n) (e) 2. of the statutes is created to read:

AB100-ASA1,686,10 71.47 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000.

AB100-ASA1, s. 1426 Section 1426. 71.47 (4) (a) of the statutes is amended to read:

AB100-ASA1,686,25 71.47 (4) (a) Credit. Any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the internal revenue code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and, (d), (df), and (dh). Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph.

AB100-ASA1, s. 1427 Section 1427. 71.47 (4) (am) of the statutes is amended to read:

AB100-ASA1,688,4 71.47 (4) (am) Development zone additional research credit. In addition to the credit under par. (a), any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" include only expenses incurred by the claimant in a development zone under subch. VI of ch. 560, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" do not include compensation used in computing the credit under sub. (1dj) nor research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), the corporation's base amount, as defined in section 41 (c) of the internal revenue code, in a development zone, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and, (d), (df), and (dh) and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), in a development zone, if the claimant submits with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.765 (3) and a statement from the department of commerce verifying the claimant's qualified research expenses for research conducted exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit under this paragraph. The rules under sub. (1di) (f) and (g) as they apply to the credit under that subsection apply to claims under this paragraph. Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph. No credit may be claimed under this paragraph for taxable years that begin on January 1, 1998, or thereafter. Credits under this paragraph for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.

AB100-ASA1, s. 1428 Section 1428. 71.47 (4) (i) of the statutes is amended to read:

AB100-ASA1,688,11 71.47 (4) (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) (1k), limited liability company, except a limited liability company treated as a corporation under s. 71.22 (1) (1k), 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.

AB100-ASA1, s. 1428k Section 1428k. 71.47 (5g) of the statutes is created to read:

AB100-ASA1,688,15 71.47 (5g) Health insurance risk-sharing plan assessments credit. (a) Definitions. In this subsection, "claimant" means an insurer, as defined in s. 149.10 (5), who files a claim under this subsection.

AB100-ASA1,688,20 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to a percentage of the amount of assessment under s. 149.13 that the claimant paid in the taxable year, as determined under par. (c) 1.

AB100-ASA1,688,25 (c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year so that the cost of the credit under this subsection and ss. 71.07 (5g), 71.28 (5g), and 76.655 is as close as practicable to $2,000,000 in the 2006-07 fiscal year and $5,000,000 in each fiscal year thereafter.

AB100-ASA1,689,8 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB100-ASA1,689,10 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB100-ASA1, s. 1428p Section 1428p. 71.49 (1) (dm) of the statutes is created to read:

AB100-ASA1,689,13 71.49 (1) (dm) Health insurance risk-sharing plan assessments credit under s. 71.47 (5g).

AB100-ASA1, s. 1429 Section 1429. 71.58 (1) (c) of the statutes is amended to read:

AB100-ASA1,689,16 71.58 (1) (c) For partnerships except publicly traded partnerships treated as corporations under s. 71.22 (1) (1k), "claimant" means each individual partner.

AB100-ASA1, s. 1430 Section 1430. 71.58 (1) (cm) of the statutes is amended to read:

AB100-ASA1,689,20 71.58 (1) (cm) For limited liability companies, except limited liability companies treated as corporations under s. 71.22 (1) (1k), "claimant" means each individual member.

AB100-ASA1, s. 1430m Section 1430m. 71.67 (5) (a) of the statutes is amended to read:

AB100-ASA1,690,2 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b), (bm), or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n) or (1p) if the amount of the payment is more than $1,000.

AB100-ASA1, s. 1430o Section 1430o. 71.67 (5) (b) of the statutes is amended to read:

AB100-ASA1,690,6 71.67 (5) (b) Deposits. The licensee under s. 562.05 (1) (b), (bm), or (c) shall deposit the amounts withheld under this subsection as would an employer depositing under s. 71.65 (3).

AB100-ASA1, s. 1431 Section 1431. 71.775 of the statutes is created to read:

AB100-ASA1,690,9 71.775 Withholding from nonresident members of pass-through entities. (1) Definitions. In this section:

AB100-ASA1,690,13 (a) "Nonresident" includes an individual who is not domiciled in this state; a partnership, limited liability company, or corporation whose commercial domicile is outside the state; and an estate or a trust that is a nonresident under s. 71.14 (1) to (3m).

AB100-ASA1,690,16 (b) "Pass-through entity" means a partnership, a limited liability company, a tax-option corporation, an estate, or a trust that is treated as a pass-through entity for federal income tax purposes.

AB100-ASA1,690,24 (2) Withholding tax imposed. (a) For the privilege of doing business in this state or deriving income from property located in this state, a pass-through entity that has Wisconsin income for the taxable year that is allocable to a nonresident partner, member, shareholder, or beneficiary shall pay a withholding tax. The amount of the tax imposed under this subsection to be withheld from the income distributable to each nonresident partner, member, shareholder, or beneficiary is equal to the nonresident partner's, member's, shareholder's, or beneficiary's share of income attributable to this state, multiplied by the following:

AB100-ASA1,691,2 1. For an individual, an estate, or a trust that is a pass-through entity, the highest tax rate for a single individual for the taxable year under s. 71.06.

AB100-ASA1,691,4 2. For a partnership, a limited liability company, or a tax-option corporation that is a pass-through entity, the highest tax rate for the taxable year under s. 71.27.

AB100-ASA1,691,8 (b) A pass-through entity that is also a member of another pass-through entity is subject to withholding under this subsection and shall pay the tax based on the share of income that is distributable to each of the entity's nonresident partners, members, shareholders, or beneficiaries.

AB100-ASA1,691,12 (3) Exemptions. (a) A nonresident partner's, member's, shareholder's, or beneficiary's share of income from the pass-through entity that is attributable to this state shall not be included in determining the withholding under sub. (2) if any of the following applies:

AB100-ASA1,691,20 1. The partner, member, shareholder, or beneficiary is exempt from taxation under this chapter. For purposes of this subdivision, the pass-through entity may rely on a written statement from the partner, member, shareholder, or beneficiary claiming to be exempt from taxation under this chapter, if the pass-through entity attaches a copy of the statement to its return for the taxable year and if the statement specifies the name, address, federal employer identification number, and reason for claiming an exemption for each partner, member, shareholder, or beneficiary claiming to be exempt from taxation under this chapter.

AB100-ASA1,691,23 2. The partner, member, shareholder, or beneficiary has no Wisconsin income other than his or her share of income from the pass-through entity that is attributable to this state and his or her share of such income is less than $1,000.

AB100-ASA1,692,3 (b) A pass-through entity that is a joint venture is not subject to the withholding under sub. (2), if the pass-through entity has elected not to be treated as a partnership under section 761 of the Internal Revenue Code.

AB100-ASA1,692,10 (cm) A pass-through entity that is a publicly traded partnership, as defined under section 7704 (b) of the Internal Revenue Code, that is treated as a partnership under the Internal Revenue Code is not subject to the withholding under sub. (2), if the entity files with the department an information return that reports the name, address, taxpayer identification number, and any other information requested by the department for each unit holder with an income in this state from the entity in excess of $500.

AB100-ASA1,692,13 (4) Administration. (a) Each pass-through entity that is subject to the withholding under sub. (2) shall pay the amount of the tax withheld to the department no later than:

AB100-ASA1,692,15 1. For tax-option corporations, the 15th day of the 3rd month following the close of the taxable year.

AB100-ASA1,692,17 2. For partnerships, limited liability companies, estates, and trusts, the 15th day of the 4th month following the close of the taxable year.

AB100-ASA1,692,20 (b) 1. If the pass-through entity has an extension of time to file its return, the tax withheld under sub. (2) is due on the unextended due date of the entity's return as provided under s. 71.13 (1), 71.20 (1), or 71.24 (1).

AB100-ASA1,693,6 2. A pass-through entity that pays the tax withheld under sub. (2) as provided under subd. 1. is not subject to an underpayment of estimated tax under s. 71.09 or 71.29, if 90 percent of the tax that is due for the current taxable year is paid by the unextended due date or if 100 percent of the tax that is due for the taxable year immediately preceding the current taxable year is paid by the unextended due date and the taxable year immediately preceding the current taxable year was a 12-month period. Interest at the rate 12 percent shall be imposed on the unpaid amount of the tax withheld under sub. (2) during any extension period and interest at the rate of 18 percent shall be imposed on the unpaid amount of the tax withheld under sub. (2) for the period beginning with the extended due date and ending with the date that the unpaid amount is paid in full.

AB100-ASA1,693,13 (c) On or before the due date, including extensions, of the entity's return, a pass-through entity that withholds tax under sub. (2) shall annually notify each of its nonresident partners, members, shareholders, or beneficiaries of the amount of the tax withheld under sub. (2) that the pass-through entity paid on the nonresident partner's, member's, shareholder's, or beneficiary's behalf. The pass-through entity shall provide a copy of the notice to the department with the return that it files for the taxable year.

AB100-ASA1,693,19 (d) A nonresident partner, member, shareholder, or beneficiary of a pass-through entity may claim a credit, as prescribed by the department, on his or her Wisconsin income or franchise tax return for the amount withheld under sub. (2) on his or her behalf. For purposes of this paragraph, the amount withheld under sub. (2) is considered to be paid on the last day of the pass-through entity's taxable year for which the tax is paid.

AB100-ASA1,693,25 (e) Any tax withheld under this section shall be held in trust for this state, and a pass-through entity subject to withholding under this section shall be liable to the department for the payment of the tax withheld. No partner, member, shareholder, or beneficiary of a pass-through entity shall have any right of action against the pass-through entity with respect to any amount withheld and paid in compliance with this section.

AB100-ASA1,694,7 (f) If a pass-through entity subject to withholding under this section fails to withhold tax as required by this section, the pass-through entity shall be liable for any tax, interest, and penalties. If a nonresident partner, member, shareholder, or beneficiary of the pass-through entity files a return and pays the tax due, the pass-through entity shall not be liable for the tax, but shall be liable for any interest and penalties otherwise applicable for failure to withhold, as provided under ss. 71.82 (2) (d) and 71.83.

AB100-ASA1, s. 1431s Section 1431s. 71.78 (2) of the statutes is amended to read:

AB100-ASA1,694,25 71.78 (2) Disclosure of net tax. The department shall make available upon suitable forms prepared by the department information setting forth the net Wisconsin income tax, Wisconsin franchise tax or Wisconsin gift tax reported as paid or payable in the returns filed by any individual or corporation, and any amount of delinquent taxes owed, as described in s. 73.03 (62), by any such individual or corporation, for any individual year upon request. Before the request is granted, the person desiring to obtain the information shall prove his or her identity and shall be required to sign a statement setting forth the person's address and reason for making the request and indicating that the person understands the provisions of this section with respect to the divulgement, publication or dissemination of information obtained from returns as provided in sub. (1). The use of a fictitious name is a violation of this section. Within 24 hours after any information from any such tax return has been so obtained, the department shall mail to the person from whose return the information has been obtained a notification which shall give the name and address of the person obtaining the information and the reason assigned for requesting the information. The department shall collect from the person requesting the information a fee of $4 for each return.

AB100-ASA1, s. 1432c Section 1432c. 71.78 (4) (r) of the statutes is created to read:

AB100-ASA1,695,5 71.78 (4) (r) The secretary of revenue and employees of that department for the purpose of preparing and maintaining the list of persons with unpaid tax obligations as described in s. 73.03 (62) so that the list of such persons is available for public inspection.

AB100-ASA1, s. 1432m Section 1432m. 71.83 (1) (ce) of the statutes is created to read: