AB208-ASA1,9,2018 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
19(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), and (5b) and passed through
20to partners shall be added to the partnership's income.
AB208-ASA1, s. 11 21Section 11. 71.26 (2) (a) of the statutes is amended to read:
AB208-ASA1,9,2522 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
23the gross income as computed under the Internal Revenue Code as modified under
24sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
25computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)

17., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
2under this paragraph at the time that the taxpayer first claimed the credit plus the
3amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
4(1ds), (1dx), (3g), (3n), (3t), (3w), and (5b) and not passed through by a partnership,
5limited liability company, or tax-option corporation that has added that amount to
6the partnership's, limited liability company's, or tax-option corporation's income
7under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other
8disposition of assets the gain from which would be wholly exempt income, as defined
9in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus
10deductions, as computed under the Internal Revenue Code as modified under sub.
11(3), plus or minus, as appropriate, an amount equal to the difference between the
12federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
13otherwise disposed of in a taxable transaction during the taxable year, except as
14provided in par. (b) and s. 71.45 (2) and (5).
AB208-ASA1, s. 12 15Section 12. 71.28 (3w) of the statutes is created to read:
AB208-ASA1,10,1716 71.28 (3w) Rural enterprise development zone jobs credit. (a) Definitions.
17In this subsection:
AB208-ASA1,10,2018 1. "Base year" means the taxable year beginning during the calendar year prior
19to the calendar year in which the rural enterprise development zone in which the
20claimant is located takes effect.
AB208-ASA1,10,2221 2. "Claimant" means a person who is certified to claim tax benefits under s.
22560.799 (5) and who files a claim under this subsection.
AB208-ASA1,10,2523 3. "Full-time employee" means an individual who is employed in a regular,
24nonseasonal job and who, as a condition of employment, is required to work at least
252,080 hours per year, including paid leave and holidays.
AB208-ASA1,11,2
14. "Rural enterprise development zone" means a zone designated under s.
2560.799.
AB208-ASA1,11,43 5. "State payroll" means the amount of payroll apportioned to this state, as
4determined under s. 71.25 (8).
AB208-ASA1,11,85 6. "Zone payroll" means the amount of state payroll that is attributable to
6compensation paid to individuals for services that are performed in a rural
7enterprise development zone. "Zone payroll" does not include the amount of
8compensation paid to any individual that exceeds $100,000.
AB208-ASA1,11,119 (b) Filing claims; payroll. Subject to the limitations provided in this subsection
10and s. 560.799, a claimant may claim as a credit against the tax imposed under s.
1171.23 an amount calculated as follows:
AB208-ASA1,11,1212 1. Determine the amount that is the lesser of:
AB208-ASA1,11,1413 a. The claimant's zone payroll in the taxable year, minus the claimant's zone
14payroll in the base year.
AB208-ASA1,11,1615 b. The claimant's state payroll in the taxable year, minus the claimant's state
16payroll in the base year.
AB208-ASA1,11,2017 2. Subtract the number of full-time employees that the claimant employed in
18the area that comprises the rural enterprise development zone in the base year from
19the number of full-time employees that the claimant employed in the rural
20enterprise development zone in the taxable year.
AB208-ASA1,11,2221 3. Multiply the amount determined under subd. 2., but not an amount less than
22zero, by $30,000.
AB208-ASA1,11,2423 4. Subtract the amount determined under subd. 3. from the amount
24determined under subd. 1.
AB208-ASA1,11,2525 5. Multiply the amount determined under subd. 4. by 7 percent.
AB208-ASA1,12,4
1(bm) Filing supplemental claims. In addition to the credit under par. (b) and
2subject to the limitations provided in this subsection and s. 560.799, a claimant may
3claim as a credit against the tax imposed under s. 71.23 an amount equal to all of the
4following:
AB208-ASA1,12,85 1. The amount of the property taxes that the claimant paid in the taxable year
6for the claimant's personal property that is located in a rural enterprise development
7zone and used in a business that is certified to claim tax benefits under s. 560.799
8(5).
AB208-ASA1,12,129 2. The amount of taxes imposed under subch. III of ch. 77 that the claimant paid
10in the taxable year on the purchase of tangible personal property and taxable
11services that are used or consumed primarily in a rural enterprise development zone
12and used in a business that is certified to claim tax benefits under s. 560.799 (5).
AB208-ASA1,12,1813 3. If all of the claimant's payroll is zone payroll and all of the claimant's
14business-related property is located in a rural enterprise development zone, the
15amount obtained by multiplying 20 percent of the sum of the claimant's zone payroll
16in the taxable year and the adjusted basis of the claimant's property at the time that
17the property is first placed in service in the rural enterprise development zone by 7.9
18percent.
AB208-ASA1,12,2419 4. The amount the claimant paid in the taxable year to upgrade or improve the
20skills of any of the claimant's full-time employees, to train any of the claimant's
21full-time employees on the use of new technologies, or to train any full-time
22employee whose employment with the claimant represents the employee's first
23full-time job. This subdivision does not apply to employees who do not work in a
24rural enterprise development zone.
AB208-ASA1,13,5
1(c) Limitations. 1. If the allowable amount of the claim under this subsection
2exceeds the taxes otherwise due on the claimant's income under s. 71.23, the amount
3of the claim that is not used to offset those taxes shall be certified by the department
4of revenue to the department of administration for payment by check, share draft,
5or other draft drawn from the appropriation under s. 20.835 (2) (cm).
AB208-ASA1,13,136 2. Partnerships, limited liability companies, and tax-option corporations may
7not claim the credit under this subsection, but the eligibility for, and the amount of,
8the credit are based on their payment of amounts described under pars. (b) and (bm).
9A partnership, limited liability company, or tax-option corporation shall compute
10the amount of credit that each of its partners, members, or shareholders may claim
11and shall provide that information to each of them. Partners, members of limited
12liability companies, and shareholders of tax-option corporations may claim the
13credit in proportion to their ownership interests.
AB208-ASA1,13,1614 3. No credit may be allowed under this subsection unless the claimant includes
15with the claimant's return a copy of the claimant's certification for tax benefits under
16s. 560.799 (5).
AB208-ASA1,13,1917 4. No claimant may claim a credit under this subsection if the basis for which
18the credit is claimed is also the basis for which another credit is claimed under this
19subchapter.
AB208-ASA1,13,2120 (d) Administration. Subsection (4) (g) and (h), as it applies to the credit under
21sub. (4), applies to the credit under this subsection.
AB208-ASA1, s. 13 22Section 13. 71.30 (3) (f) of the statutes is amended to read:
AB208-ASA1,14,223 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28
24(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under

1s. 71.28 (2m), rural enterprise development zone jobs credit under s. 71.28 (3w), and
2estimated tax payments under s. 71.29.
AB208-ASA1, s. 14 3Section 14. 71.34 (1) (g) of the statutes is amended to read:
AB208-ASA1,14,64 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
5corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
6(3n), (3t), (3w), and (5b) and passed through to shareholders.
AB208-ASA1, s. 15 7Section 15. 71.45 (2) (a) 10. of the statutes is amended to read:
AB208-ASA1,14,138 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
9computed under s. 71.47 (1dd) to (1dx), (3n), (3w), and (5b) and not passed through
10by a partnership, limited liability company, or tax-option corporation that has added
11that amount to the partnership's, limited liability company's, or tax-option
12corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit
13computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB208-ASA1, s. 16 14Section 16. 71.47 (3w) of the statutes is created to read:
AB208-ASA1,14,1615 71.47 (3w) Rural enterprise development zone jobs credit. (a) Definitions.
16In this subsection:
AB208-ASA1,14,1917 1. "Base year" means the taxable year beginning during the calendar year prior
18to the calendar year in which the rural enterprise development zone in which the
19claimant is located takes effect.
AB208-ASA1,14,2120 2. "Claimant" means a person who is certified to claim tax benefits under s.
21560.799 (5) and who files a claim under this subsection.
AB208-ASA1,14,2422 3. "Full-time employee" means an individual who is employed in a regular,
23nonseasonal job and who, as a condition of employment, is required to work at least
242,080 hours per year, including paid leave and holidays.
AB208-ASA1,15,2
14. "Rural enterprise development zone" means a zone designated under s.
2560.799.
AB208-ASA1,15,43 5. "State payroll" means the amount of payroll apportioned to this state, as
4determined under s. 71.45 (3) (b).
AB208-ASA1,15,85 6. "Zone payroll" means the amount of state payroll that is attributable to
6compensation paid to individuals for services that are performed in a rural
7enterprise development zone. "Zone payroll" does not include the amount of
8compensation paid to any individual that exceeds $100,000.
AB208-ASA1,15,119 (b) Filing claims; payroll. Subject to the limitations provided in this subsection
10and s. 560.799, a claimant may claim as a credit against the tax imposed under s.
1171.43 an amount calculated as follows:
AB208-ASA1,15,1212 1. Determine the amount that is the lesser of:
AB208-ASA1,15,1413 a. The claimant's zone payroll in the taxable year, minus the claimant's zone
14payroll in the base year.
AB208-ASA1,15,1615 b. The claimant's state payroll in the taxable year, minus the claimant's state
16payroll in the base year.
AB208-ASA1,15,2017 2. Subtract the number of full-time employees that the claimant employed in
18the area that comprises the rural enterprise development zone in the base year from
19the number of full-time employees that the claimant employed in the rural
20enterprise development zone in the taxable year.
AB208-ASA1,15,2221 3. Multiply the amount determined under subd. 2., but not an amount less than
22zero, by $30,000.
AB208-ASA1,15,2423 4. Subtract the amount determined under subd. 3. from the amount
24determined under subd. 1.
AB208-ASA1,15,2525 5. Multiply the amount determined under subd. 4. by 7 percent.
AB208-ASA1,16,4
1(bm) Filing supplemental claims. In addition to the credit under par. (b) and
2subject to the limitations provided in this subsection and s. 560.799, a claimant may
3claim as a credit against the tax imposed under s. 71.43 an amount equal to all of the
4following:
AB208-ASA1,16,85 1. The amount of the property taxes that the claimant paid in the taxable year
6for the claimant's personal property that is located in a rural enterprise development
7zone and used in a business that is certified to claim tax benefits under s. 560.799
8(5).
AB208-ASA1,16,129 2. The amount of taxes imposed under subch. III of ch. 77 that the claimant paid
10in the taxable year on the purchase of tangible personal property and taxable
11services that are used or consumed primarily in a rural enterprise development zone
12and used in a business that is certified to claim tax benefits under s. 560.799 (5).
AB208-ASA1,16,1813 3. If all of the claimant's payroll is zone payroll and all of the claimant's
14business-related property is located in a rural enterprise development zone, the
15amount obtained by multiplying 20 percent of the sum of the claimant's zone payroll
16in the taxable year and the adjusted basis of the claimant's property at the time that
17the property is first placed in service in the rural enterprise development zone by 7.9
18percent.
AB208-ASA1,16,2419 4. The amount the claimant paid in the taxable year to upgrade or improve the
20skills of any of the claimant's full-time employees, to train any of the claimant's
21full-time employees on the use of new technologies, or to train any full-time
22employee whose employment with the claimant represents the employee's first
23full-time job. This subdivision does not apply to employees who do not work in a
24rural enterprise development zone.
AB208-ASA1,17,5
1(c) Limitations. 1. If the allowable amount of the claim under this subsection
2exceeds the taxes otherwise due on the claimant's income under s. 71.43, the amount
3of the claim that is not used to offset those taxes shall be certified by the department
4of revenue to the department of administration for payment by check, share draft,
5or other draft drawn from the appropriation under s. 20.835 (2) (cm).
AB208-ASA1,17,136 2. Partnerships, limited liability companies, and tax-option corporations may
7not claim the credit under this subsection, but the eligibility for, and the amount of,
8the credit are based on their payment of amounts described under pars. (b) and (bm).
9A partnership, limited liability company, or tax-option corporation shall compute
10the amount of credit that each of its partners, members, or shareholders may claim
11and shall provide that information to each of them. Partners, members of limited
12liability companies, and shareholders of tax-option corporations may claim the
13credit in proportion to their ownership interests.
AB208-ASA1,17,1614 3. No credit may be allowed under this subsection unless the claimant includes
15with the claimant's return a copy of the claimant's certification for tax benefits under
16s. 560.799 (5).
AB208-ASA1,17,1917 4. No claimant may claim a credit under this subsection if the basis for which
18the credit is claimed is also the basis for which another credit is claimed under this
19subchapter.
AB208-ASA1,17,2120 (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under
21s. 71.28 (4), applies to the credit under this subsection.
AB208-ASA1, s. 17 22Section 17. 71.49 (1) (f) of the statutes is amended to read:
AB208-ASA1,18,223 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47
24(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under

1s. 71.47 (2m), rural enterprise development zone jobs credit under s. 71.47 (3w), and
2estimated tax payments under s. 71.48.
AB208-ASA1, s. 18 3Section 18. 77.92 (4) of the statutes is amended to read:
AB208-ASA1,18,184 77.92 (4) "Net business income," with respect to a partnership, means taxable
5income as calculated under section 703 of the Internal Revenue Code; plus the items
6of income and gain under section 702 of the Internal Revenue Code, including taxable
7state and municipal bond interest and excluding nontaxable interest income or
8dividend income from federal government obligations; minus the items of loss and
9deduction under section 702 of the Internal Revenue Code, except items that are not
10deductible under s. 71.21; plus guaranteed payments to partners under section 707
11(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
12(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), and (5b); and
13plus or minus, as appropriate, transitional adjustments, depreciation differences,
14and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding
15income, gain, loss, and deductions from farming. "Net business income," with respect
16to a natural person, estate, or trust, means profit from a trade or business for federal
17income tax purposes and includes net income derived as an employee as defined in
18section 3121 (d) (3) of the Internal Revenue Code.
AB208-ASA1, s. 19 19Section 19. 560.799 of the statutes is created to read:
AB208-ASA1,18,21 20560.799 Rural enterprise development zone. (1) Definitions. In this
21section:
AB208-ASA1,18,2222 (a) "Local governing body" has the meaning given in s. 560.70 (4).
AB208-ASA1,18,2323 (b) "Local governmental unit" means a city, village, town, or county.
AB208-ASA1,18,2524 (c) "Tax benefits" means the income and franchise tax credits under ss. 71.07
25(3c), (3e), and (3w), 71.28 (3w), and 71.47 (3w).
AB208-ASA1,19,5
1(2) Application; development plan. (a) The local governing body of a local
2governmental unit may apply to the department for designation of an area as a rural
3enterprise development zone, if the proposed zone includes land within the
4boundaries of the local governmental unit applying for designation. An application
5shall include a development plan under par. (b).
AB208-ASA1,19,66 (b) A development plan shall include all of the following:
AB208-ASA1,19,97 1. A map of the proposed zone that shows the physical boundaries of the
8proposed zone, the size of the zone in acres, and the present uses and condition of land
9and structures in the proposed zone.
AB208-ASA1,19,1110 2. Evidence of support in the proposed zone for the proposed designation,
11including support from local government, the public, and business groups.
AB208-ASA1,19,1512 3. A description of the applicant's or applicants' goals for, and proposed methods
13for achieving, increased economic opportunity and expansion, infrastructure
14improvements, reduced regulatory burdens, and increased job training
15opportunities in the proposed zone.
AB208-ASA1,19,1916 4. A description of current social, economic, and demographic characteristics
17of the proposed zone and of the anticipated improvements in health, human services,
18and employment that would result from designation as a rural enterprise
19development zone.
AB208-ASA1,19,2120 5. A description of anticipated economic and other activity in the proposed zone,
21including industrial uses, commercial or retail uses, and residential uses.
AB208-ASA1,19,2322 6. A proposal as to the time period in which the designation would remain in
23effect.
AB208-ASA1,20,2 24(3) Designation of rural enterprise development zones; criteria. (a) The
25department may, upon application, designate not more than 10 rural enterprise

1development zones. The department may designate an area as a rural enterprise
2development zone if all of the following apply:
AB208-ASA1,20,33 1. The area does not exceed 5,000 acres.
AB208-ASA1,20,54 2. The area does not include any part of a city of the first class or a city with
5a population greater than 200,000.
AB208-ASA1,20,76 (b) In determining whether to grant an application to designate an area under
7par. (a), the department shall consider all of the following:
AB208-ASA1,20,118 1. Indicators of the area's economic need, which may include data regarding
9household income, average wages, the condition of property, housing values,
10population decline, job losses, infrastructure and energy support, and the rate of
11business development.
AB208-ASA1,20,2012 2. Indicators of the likelihood of success in achieving the goals under sub. (2)
13(b) 3., which may include the strength and viability of the development plan; the level
14of creativity and innovation reflected in the development plan; the strength of
15support for the proposal in the proposed zone; the existing resources available to the
16area; the effect of designation on other initiatives and programs to promote economic
17and community development in the area, including regional initiatives and
18programs; the extent to which an applicant proposes to ease regulatory burdens; the
19extent to which the development plan links job creation and job training; and the
20extent to which the development plan focuses on creating high-paying jobs.
AB208-ASA1,20,2321 (c) The department shall, to the extent possible, give preference to applications
22in which the areas proposed for designation have the lowest population densities and
23have, according to the indicators under par. (b) 1., the greatest economic need.
AB208-ASA1,20,25 24(4) Time limits; reporting. (a) A designation under sub. (3) may remain in
25effect for no more than 12 years.
AB208-ASA1,21,7
1(b) If the department designates an area as a rural enterprise development
2zone under sub. (3), the governing body of the local governmental unit that applied
3for designation shall, during the time that the designation is in effect, annually
4submit a report to the department, in a form and at a time prescribed by the
5department, describing the local governmental unit's progress in meeting the goals
6contained in the development plan under sub. (2) (b) 3., and any additional
7information required by the department.
AB208-ASA1,21,9 8(5) Certification. The department may certify for tax benefits any of the
9following:
AB208-ASA1,21,1010 (a) A business that begins operations in a rural enterprise development zone.
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