AB100-ASA1, s. 1412 7Section 1412. 71.47 (1dm) (hm) of the statutes is amended to read:
AB100-ASA1,682,158 71.47 (1dm) (hm) Credits claimed A claimant may claim the credit under this
9subsection, including any credits carried over, may be offset only against the amount
10of the tax otherwise due under this subchapter attributable to income from the
11business operations of the claimant in the development zone; except that a claimant
12in a development zone under s. 560.795 (1) (e) may offset credits, including any
13credits carried over, against the amount of the tax otherwise due under this
14subchapter attributable to all of the claimant's income; and against the tax
15attributable to income from directly related business operations of the claimant
.
AB100-ASA1, s. 1413 16Section 1413. 71.47 (1dx) (a) 5. of the statutes is amended to read:
AB100-ASA1,683,517 71.47 (1dx) (a) 5. "Member of a targeted group" means a person who resides
18in an empowerment zone, or an enterprise community, that the U.S. government
19designates
area designated by the federal government as an economic revitalization
20area
, a person who is employed in an unsubsidized job but meets the eligibility
21requirements under s. 49.145 (2) and (3) for a Wisconsin works Works employment
22position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a
23person who is eligible for child care assistance under s. 49.155, a person who is a
24vocational rehabilitation referral, an economically disadvantaged youth, an
25economically disadvantaged veteran, a supplemental security income recipient, a

1general assistance recipient, an economically disadvantaged ex-convict, a qualified
2summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as
3defined in 29 USC 2801 (9), or a food stamp recipient; , if the person has been certified
4in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub.
5(1dj) (am) 2.
AB100-ASA1, s. 1414 6Section 1414. 71.47 (1dx) (b) (intro.) of the statutes is amended to read:
AB100-ASA1,683,127 71.47 (1dx) (b) Credit. (intro.) Except or as provided in pars. (be) and (bg) and
8in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
9is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
10560.797 (4) or 560.798 (3), any person may claim as a credit against the taxes imposed
11 on the person's income from the person's business activities in a development zone
12otherwise due under this chapter the following amounts:
AB100-ASA1, s. 1419 13Section 1419. 71.47 (2m) (a) 1. b. of the statutes is amended to read:
AB100-ASA1,683,1714 71.47 (2m) (a) 1. b. For partnerships, except publicly traded partnerships
15treated as corporations under s. 71.22 (1) (1k), or limited liability companies, except
16limited liability companies treated as corporations under s. 71.22 (1) (1k), "claimant"
17means each individual partner or member.
AB100-ASA1, s. 1420 18Section 1420. 71.47 (3n) (title) of the statutes is amended to read:
AB100-ASA1,683,1919 71.47 (3n) (title) Dairy and livestock farm investment credit.
AB100-ASA1, s. 1424b 20Section 1424b. 71.47 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB100-ASA1,684,221 71.47 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the
22construction, the improvement, or the acquisition of buildings or facilities, or the
23acquisition of equipment, for dairy animal housing, confinement, animal feeding,
24milk production, or waste management, including the following, if used exclusively

1related to dairy animals and if acquired and placed in service in this state during
2taxable years that begin after December 31, 2003, and before January 1, 2010
:
AB100-ASA1, s. 1424c 3Section 1424c. 71.47 (3n) (a) 4. of the statutes is created to read:
AB100-ASA1,684,64 71.47 (3n) (a) 4. "Livestock" means cattle, not including dairy animals; swine;
5poultry, not including farm-raised game birds or ratites; fish that are raised in
6aquaculture facilities; sheep; and goats.
AB100-ASA1, s. 1424d 7Section 1424d. 71.47 (3n) (a) 5. of the statutes is created to read:
AB100-ASA1,684,138 71.47 (3n) (a) 5. "Livestock farm modernization or expansion" means the
9construction, the improvement, or the acquisition of buildings or facilities, or the
10acquisition of equipment, for livestock housing, confinement, feeding, or waste
11management, including the following, if used exclusively related to livestock and if
12acquired and placed in service in this state during taxable years that begin after
13December 31, 2005, and before January 1, 2012:
AB100-ASA1,684,1414 a. Birthing structures.
AB100-ASA1,684,1515 b. Rearing structures.
AB100-ASA1,684,1616 c. Feedlot structures.
AB100-ASA1,684,1717 d. Feed storage and handling equipment.
AB100-ASA1,684,1818 e. Fences.
AB100-ASA1,684,1919 f. Watering facilities.
AB100-ASA1,684,2020 g. Scales.
AB100-ASA1,684,2121 h. Manure pumping and storage facilities.
AB100-ASA1,684,2222 i. Digesters.
AB100-ASA1,684,2323 j. Equipment used to produce energy.
AB100-ASA1,684,2424 k. Fish hatchery buildings.
AB100-ASA1,684,2525 L. Fish processing buildings.
AB100-ASA1,685,1
1m. Fish rearing ponds.
AB100-ASA1, s. 1424e 2Section 1424e. 71.47 (3n) (a) 6. of the statutes is created to read:
AB100-ASA1,685,53 71.47 (3n) (a) 6. a. For taxable years that begin after December 31, 2003, and
4before January 1, 2006, "used exclusively," related to dairy animals, means used to
5the exclusion of all other uses except for use not exceeding 5 percent of total use.
AB100-ASA1,685,86 b. For taxable years that begin after December 31, 2005, and before January
71, 2010, "used exclusively," related to livestock, dairy animals, or both, means used
8to the exclusion of all other uses except for use not exceeding 5 percent of total use.
AB100-ASA1,685,119 c. For taxable years that begin after December 31, 2009, and before January
101, 2012, "used exclusively," related to livestock, means used to the exclusion of all
11other uses except for use not exceeding 5 percent of total use.
AB100-ASA1, s. 1425b 12Section 1425b. 71.47 (3n) (b) of the statutes is renumbered 71.47 (3n) (b) 1.
AB100-ASA1, s. 1425c 13Section 1425c. 71.47 (3n) (b) 2. of the statutes is created to read:
AB100-ASA1,685,1914 71.47 (3n) (b) 2. Subject to the limitations provided in this subsection, for
15taxable years that begin after December 31, 2005, and before January 1, 2012, a
16claimant may claim as a credit against the tax imposed under s. 71.43 an amount
17equal to 10 percent of the amount the claimant paid in the taxable year for livestock
18farm modernization or expansion related to the operation of the claimant's livestock
19farm.
AB100-ASA1, s. 1425d 20Section 1425d. 71.47 (3n) (e) of the statutes is renumbered 71.47 (3n) (e) 1.
21and amended to read:
AB100-ASA1,686,522 71.47 (3n) (e) 1. Partnerships, limited liability companies, and tax-option
23corporations may not claim the credit under this subsection, but the eligibility for,
24and the amount of, the credit are based on their payment of expenses under par. (b),
25except that the aggregate amount of credits that the entity may compute shall not

1exceed $50,000
. A partnership, limited liability company, or tax-option corporation
2shall compute the amount of credit that each of its partners, members, or
3shareholders may claim and shall provide that information to each of them.
4Partners, members of limited liability companies, and shareholders of tax-option
5corporations may claim the credit in proportion to their ownership interest.
AB100-ASA1, s. 1425e 6Section 1425e. 71.47 (3n) (e) 2. of the statutes is created to read:
AB100-ASA1,686,107 71.47 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock
8farm, each person may claim a credit under par. (b) in proportion to his or her
9ownership interest, except that the aggregate amount of the credits claimed by all
10persons who own and operate the farm shall not exceed $50,000.
AB100-ASA1, s. 1426 11Section 1426. 71.47 (4) (a) of the statutes is amended to read:
AB100-ASA1,686,2512 71.47 (4) (a) Credit. Any corporation may credit against taxes otherwise due
13under this chapter an amount equal to 5% of the amount obtained by subtracting
14from the corporation's qualified research expenses, as defined in section 41 of the
15internal revenue code, except that "qualified research expenses" includes only
16expenses incurred by the claimant, incurred for research conducted in this state for
17the taxable year, except that a taxpayer may elect the alternative computation under
18section 41 (c) (4) of the Internal Revenue Code and that election applies until the
19department permits its revocation and except that "qualified research expenses"
20does not include compensation used in computing the credit under subs. (1dj) and
21(1dx), the corporation's base amount, as defined in section 41 (c) of the internal
22revenue code, except that gross receipts used in calculating the base amount means
23gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and,
24(d), (df), and (dh). Section 41 (h) of the internal revenue code does not apply to the
25credit under this paragraph.
AB100-ASA1, s. 1427
1Section 1427. 71.47 (4) (am) of the statutes is amended to read:
AB100-ASA1,688,42 71.47 (4) (am) Development zone additional research credit. In addition to the
3credit under par. (a), any corporation may credit against taxes otherwise due under
4this chapter an amount equal to 5% of the amount obtained by subtracting from the
5corporation's qualified research expenses, as defined in section 41 of the internal
6revenue code, except that "qualified research expenses" include only expenses
7incurred by the claimant in a development zone under subch. VI of ch. 560, except
8that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
9Internal Revenue Code and that election applies until the department permits its
10revocation and except that "qualified research expenses" do not include
11compensation used in computing the credit under sub. (1dj) nor research expenses
12incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
13corporation's base amount, as defined in section 41 (c) of the internal revenue code,
14in a development zone, except that gross receipts used in calculating the base amount
15means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and
162. and, (d), (df), and (dh) and research expenses used in calculating the base amount
17include research expenses incurred before the claimant is certified for tax benefits
18under s. 560.765 (3), in a development zone, if the claimant submits with the
19claimant's return a copy of the claimant's certification for tax benefits under s.
20560.765 (3) and a statement from the department of commerce verifying the
21claimant's qualified research expenses for research conducted exclusively in a
22development zone. The rules under s. 73.03 (35) apply to the credit under this
23paragraph. The rules under sub. (1di) (f) and (g) as they apply to the credit under
24that subsection apply to claims under this paragraph. Section 41 (h) of the internal
25revenue code does not apply to the credit under this paragraph. No credit may be

1claimed under this paragraph for taxable years that begin on January 1, 1998, or
2thereafter. Credits under this paragraph for taxable years that begin before January
31, 1998, may be carried forward to taxable years that begin on January 1, 1998, or
4thereafter.
AB100-ASA1, s. 1428 5Section 1428. 71.47 (4) (i) of the statutes is amended to read:
AB100-ASA1,688,116 71.47 (4) (i) Nonclaimants. The credits under this subsection may not be
7claimed by a partnership, except a publicly traded partnership treated as a
8corporation under s. 71.22 (1) (1k), limited liability company, except a limited
9liability company treated as a corporation under s. 71.22 (1) (1k), or tax-option
10corporation or by partners, including partners of a publicly traded partnership,
11members of a limited liability company or shareholders of a tax-option corporation.
AB100-ASA1, s. 1428k 12Section 1428k. 71.47 (5g) of the statutes is created to read:
AB100-ASA1,688,1513 71.47 (5g) Health insurance risk-sharing plan assessments credit. (a)
14Definitions. In this subsection, "claimant" means an insurer, as defined in s. 149.10
15(5), who files a claim under this subsection.
AB100-ASA1,688,2016 (b) Filing claims. Subject to the limitations provided under this subsection, for
17taxable years beginning after December 31, 2005, a claimant may claim as a credit
18against the taxes imposed under s. 71.43 an amount that is equal to a percentage of
19the amount of assessment under s. 149.13 that the claimant paid in the taxable year,
20as determined under par. (c) 1.
AB100-ASA1,688,2521 (c) Limitations. 1. The department of revenue, in consultation with the office
22of the commissioner of insurance, shall determine the percentage under par. (b) for
23each claimant for each taxable year so that the cost of the credit under this subsection
24and ss. 71.07 (5g), 71.28 (5g), and 76.655 is as close as practicable to $2,000,000 in
25the 2006-07 fiscal year and $5,000,000 in each fiscal year thereafter.
AB100-ASA1,689,8
12. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of amounts described under par. (b). A
4partnership, limited liability company, or tax-option corporation shall compute the
5amount of credit that each of its partners, members, or shareholders may claim and
6shall provide that information to each of them. Partners, members of limited liability
7companies, and shareholders of tax-option corporations may claim the credit in
8proportion to their ownership interests.
AB100-ASA1,689,109 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
10s. 71.28 (4), applies to the credit under this subsection.
AB100-ASA1, s. 1428p 11Section 1428p. 71.49 (1) (dm) of the statutes is created to read:
AB100-ASA1,689,1312 71.49 (1) (dm) Health insurance risk-sharing plan assessments credit under
13s. 71.47 (5g).
AB100-ASA1, s. 1429 14Section 1429. 71.58 (1) (c) of the statutes is amended to read:
AB100-ASA1,689,1615 71.58 (1) (c) For partnerships except publicly traded partnerships treated as
16corporations under s. 71.22 (1) (1k), "claimant" means each individual partner.
AB100-ASA1, s. 1430 17Section 1430. 71.58 (1) (cm) of the statutes is amended to read:
AB100-ASA1,689,2018 71.58 (1) (cm) For limited liability companies, except limited liability
19companies treated as corporations under s. 71.22 (1) (1k), "claimant" means each
20individual member.
AB100-ASA1, s. 1430m 21Section 1430m. 71.67 (5) (a) of the statutes is amended to read:
AB100-ASA1,690,222 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and
23manage races under s. 562.05 (1) (b), (bm), or (c) shall withhold from the amount of
24any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount
25determined by multiplying the amount of the payment by the highest rate applicable

1to individuals under s. 71.06 (1) (a) to (c), (1m), (1n) or (1p) if the amount of the
2payment is more than $1,000.
AB100-ASA1, s. 1430o 3Section 1430o. 71.67 (5) (b) of the statutes is amended to read:
AB100-ASA1,690,64 71.67 (5) (b) Deposits. The licensee under s. 562.05 (1) (b), (bm), or (c) shall
5deposit the amounts withheld under this subsection as would an employer
6depositing under s. 71.65 (3).
AB100-ASA1, s. 1431 7Section 1431. 71.775 of the statutes is created to read:
AB100-ASA1,690,9 871.775 Withholding from nonresident members of pass-through
9entities. (1)
Definitions. In this section:
AB100-ASA1,690,1310 (a) "Nonresident" includes an individual who is not domiciled in this state; a
11partnership, limited liability company, or corporation whose commercial domicile is
12outside the state; and an estate or a trust that is a nonresident under s. 71.14 (1) to
13(3m).
AB100-ASA1,690,1614 (b) "Pass-through entity" means a partnership, a limited liability company, a
15tax-option corporation, an estate, or a trust that is treated as a pass-through entity
16for federal income tax purposes.
AB100-ASA1,690,24 17(2) Withholding tax imposed. (a) For the privilege of doing business in this
18state or deriving income from property located in this state, a pass-through entity
19that has Wisconsin income for the taxable year that is allocable to a nonresident
20partner, member, shareholder, or beneficiary shall pay a withholding tax. The
21amount of the tax imposed under this subsection to be withheld from the income
22distributable to each nonresident partner, member, shareholder, or beneficiary is
23equal to the nonresident partner's, member's, shareholder's, or beneficiary's share
24of income attributable to this state, multiplied by the following:
AB100-ASA1,691,2
11. For an individual, an estate, or a trust that is a pass-through entity, the
2highest tax rate for a single individual for the taxable year under s. 71.06.
AB100-ASA1,691,43 2. For a partnership, a limited liability company, or a tax-option corporation
4that is a pass-through entity, the highest tax rate for the taxable year under s. 71.27.
AB100-ASA1,691,85 (b) A pass-through entity that is also a member of another pass-through entity
6is subject to withholding under this subsection and shall pay the tax based on the
7share of income that is distributable to each of the entity's nonresident partners,
8members, shareholders, or beneficiaries.
AB100-ASA1,691,12 9(3) Exemptions. (a) A nonresident partner's, member's, shareholder's, or
10beneficiary's share of income from the pass-through entity that is attributable to this
11state shall not be included in determining the withholding under sub. (2) if any of the
12following applies:
AB100-ASA1,691,2013 1. The partner, member, shareholder, or beneficiary is exempt from taxation
14under this chapter. For purposes of this subdivision, the pass-through entity may
15rely on a written statement from the partner, member, shareholder, or beneficiary
16claiming to be exempt from taxation under this chapter, if the pass-through entity
17attaches a copy of the statement to its return for the taxable year and if the statement
18specifies the name, address, federal employer identification number, and reason for
19claiming an exemption for each partner, member, shareholder, or beneficiary
20claiming to be exempt from taxation under this chapter.
AB100-ASA1,691,2321 2. The partner, member, shareholder, or beneficiary has no Wisconsin income
22other than his or her share of income from the pass-through entity that is
23attributable to this state and his or her share of such income is less than $1,000.
AB100-ASA1,692,3
1(b) A pass-through entity that is a joint venture is not subject to the
2withholding under sub. (2), if the pass-through entity has elected not to be treated
3as a partnership under section 761 of the Internal Revenue Code.
AB100-ASA1,692,104 (cm) A pass-through entity that is a publicly traded partnership, as defined
5under section 7704 (b) of the Internal Revenue Code, that is treated as a partnership
6under the Internal Revenue Code is not subject to the withholding under sub. (2), if
7the entity files with the department an information return that reports the name,
8address, taxpayer identification number, and any other information requested by the
9department for each unit holder with an income in this state from the entity in excess
10of $500.
AB100-ASA1,692,13 11(4) Administration. (a) Each pass-through entity that is subject to the
12withholding under sub. (2) shall pay the amount of the tax withheld to the
13department no later than:
AB100-ASA1,692,1514 1. For tax-option corporations, the 15th day of the 3rd month following the
15close of the taxable year.
AB100-ASA1,692,1716 2. For partnerships, limited liability companies, estates, and trusts, the 15th
17day of the 4th month following the close of the taxable year.
AB100-ASA1,692,2018 (b) 1. If the pass-through entity has an extension of time to file its return, the
19tax withheld under sub. (2) is due on the unextended due date of the entity's return
20as provided under s. 71.13 (1), 71.20 (1), or 71.24 (1).
AB100-ASA1,693,621 2. A pass-through entity that pays the tax withheld under sub. (2) as provided
22under subd. 1. is not subject to an underpayment of estimated tax under s. 71.09 or
2371.29, if 90 percent of the tax that is due for the current taxable year is paid by the
24unextended due date or if 100 percent of the tax that is due for the taxable year
25immediately preceding the current taxable year is paid by the unextended due date

1and the taxable year immediately preceding the current taxable year was a
212-month period. Interest at the rate 12 percent shall be imposed on the unpaid
3amount of the tax withheld under sub. (2) during any extension period and interest
4at the rate of 18 percent shall be imposed on the unpaid amount of the tax withheld
5under sub. (2) for the period beginning with the extended due date and ending with
6the date that the unpaid amount is paid in full.
AB100-ASA1,693,137 (c) On or before the due date, including extensions, of the entity's return, a
8pass-through entity that withholds tax under sub. (2) shall annually notify each of
9its nonresident partners, members, shareholders, or beneficiaries of the amount of
10the tax withheld under sub. (2) that the pass-through entity paid on the nonresident
11partner's, member's, shareholder's, or beneficiary's behalf. The pass-through entity
12shall provide a copy of the notice to the department with the return that it files for
13the taxable year.
AB100-ASA1,693,1914 (d) A nonresident partner, member, shareholder, or beneficiary of a
15pass-through entity may claim a credit, as prescribed by the department, on his or
16her Wisconsin income or franchise tax return for the amount withheld under sub. (2)
17on his or her behalf. For purposes of this paragraph, the amount withheld under sub.
18(2) is considered to be paid on the last day of the pass-through entity's taxable year
19for which the tax is paid.
AB100-ASA1,693,2520 (e) Any tax withheld under this section shall be held in trust for this state, and
21a pass-through entity subject to withholding under this section shall be liable to the
22department for the payment of the tax withheld. No partner, member, shareholder,
23or beneficiary of a pass-through entity shall have any right of action against the
24pass-through entity with respect to any amount withheld and paid in compliance
25with this section.
AB100-ASA1,694,7
1(f) If a pass-through entity subject to withholding under this section fails to
2withhold tax as required by this section, the pass-through entity shall be liable for
3any tax, interest, and penalties. If a nonresident partner, member, shareholder, or
4beneficiary of the pass-through entity files a return and pays the tax due, the
5pass-through entity shall not be liable for the tax, but shall be liable for any interest
6and penalties otherwise applicable for failure to withhold, as provided under ss.
771.82 (2) (d) and 71.83.
AB100-ASA1, s. 1431s 8Section 1431s. 71.78 (2) of the statutes is amended to read:
AB100-ASA1,694,259 71.78 (2) Disclosure of net tax. The department shall make available upon
10suitable forms prepared by the department information setting forth the net
11Wisconsin income tax, Wisconsin franchise tax or Wisconsin gift tax reported as paid
12or payable in the returns filed by any individual or corporation, and any amount of
13delinquent taxes owed, as described in s. 73.03 (62), by any such individual or
14corporation,
for any individual year upon request. Before the request is granted, the
15person desiring to obtain the information shall prove his or her identity and shall be
16required to sign a statement setting forth the person's address and reason for making
17the request and indicating that the person understands the provisions of this section
18with respect to the divulgement, publication or dissemination of information
19obtained from returns as provided in sub. (1). The use of a fictitious name is a
20violation of this section. Within 24 hours after any information from any such tax
21return has been so obtained, the department shall mail to the person from whose
22return the information has been obtained a notification which shall give the name
23and address of the person obtaining the information and the reason assigned for
24requesting the information. The department shall collect from the person requesting
25the information a fee of $4 for each return.
AB100-ASA1, s. 1432c
1Section 1432c. 71.78 (4) (r) of the statutes is created to read:
AB100-ASA1,695,52 71.78 (4) (r) The secretary of revenue and employees of that department for the
3purpose of preparing and maintaining the list of persons with unpaid tax obligations
4as described in s. 73.03 (62) so that the list of such persons is available for public
5inspection.
AB100-ASA1, s. 1432m 6Section 1432m. 71.83 (1) (ce) of the statutes is created to read:
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