AB100: Bill Text

AB100,627,19 3. If the taxpayer is not subject to income tax in the state in which the gross receipts are considered received under this paragraph, but the taxpayer's commercial domicile is in this state, 50 percent of those gross receipts shall be included in the numerator of the sales factor.

AB100, s. 1280 Section 1280. 71.04 (7) (dg) of the statutes is created to read:

AB100,628,2 71.04 (7) (dg) 1. Gross royalties and other gross receipts received for the sale or use of intangible property, including, but not limited to, patents, copyrights, trademarks, trade names, service names, franchises, licenses, plans, specifications, blueprints, processes, techniques, formulas, designs, layouts, patterns, drawings, manuals, technical know-how, contracts, and customer lists, are in this state if the user, purchaser, or licensee uses the intangible property at a location in this state.

AB100,628,13 2. Intangible property is used at a location in this state if the user, purchaser, or licensee uses the property in the operation of a trade or business at a location in this state, for personal use in this state, or if the user, purchaser, or licensee is an individual whose domicile is in this state. If the user, purchaser, or licensee uses the intangible property in more than one state, the gross royalties and other gross receipts from the sale or use of the intangible property shall be divided among those states having jurisdiction to impose an income tax on the taxpayer in proportion to the use of the intangible property in those states. To determine intangible property use in this state, the department may consider the number of licensed sites in each state, the volume of property manufactured, produced, or sold at locations in this state, or any other factors that reflect the use of the intangible property in this state.

AB100,628,17 3. If the taxpayer is not subject to income tax in the state in which the gross royalties or other gross receipts are considered received under this paragraph, but the taxpayer's commercial domicile is in this state, 50 percent of those gross royalties or other gross receipts shall be included in the numerator of the sales factor.

AB100, s. 1281 Section 1281. 71.04 (7) (dh) of the statutes is created to read:

AB100,628,20 71.04 (7) (dh) 1. Gross receipts from services are in this state if the purchaser of the service received the benefit of the service in this state.

AB100,628,21 2. The benefit of a service is received in this state if any of the following applies:

AB100,628,22 a. The service relates to real property that is located in this state.

AB100,628,25 b. The service relates to tangible personal property that is located in this state at the time that the service is received or tangible personal property that is delivered directly or indirectly to customers in this state.

AB100,629,2 c. The service is provided to an individual who is physically present in this state at the time that the service is received.

AB100,629,4 d. The service is provided to a person engaged in a trade or business in this state and relates to that person's business in this state.

AB100,629,8 3. If the purchaser of a service receives the benefit of a service in more than one state, the gross receipts from the performance of the service are included in the numerator of the sales factor according to the portion of the service received in this state.

AB100,629,14 4. If the taxpayer is not subject to income tax in the state in which the benefit of the service is received, the benefit of the service is received in this state to the extent that the taxpayer's employees or representatives performed services from a location in this state. Fifty percent of the taxpayer's receipts that are considered received in this state under this paragraph shall be included in the numerator of the sales factor.

AB100, s. 1282 Section 1282. 71.04 (7) (dm) of the statutes is created to read:

AB100,629,19 71.04 (7) (dm) If the income from sales, other than sales of tangible personal property, properly assignable to this state cannot be ascertained with reasonable certainty by the methods under pars. (db), (dd), (df), (dg), and (dh), the department may promulgate rules that specify how the income shall be apportioned.

AB100, s. 1283 Section 1283. 71.04 (7) (e) 12. of the statutes is created to read:

AB100,629,22 71.04 (7) (e) 12. Gross receipts from the sale, licensing, or use of intangible property in the ordinary course of the taxpayer's trade or business.

AB100, s. 1284 Section 1284. 71.04 (7) (f) 5. of the statutes is amended to read:

AB100,629,25 71.04 (7) (f) 5. Proceeds Notwithstanding any other provision of this subsection, proceeds and gain or loss from the redemption of securities.

AB100, s. 1285 Section 1285. 71.04 (7) (f) 7. of the statutes is amended to read:

AB100,630,3 71.04 (7) (f) 7. Gross receipts and gain or loss from the sale of intangible assets, except those under par. (e) 1. and 12.

AB100, s. 1286 Section 1286. 71.04 (7) (f) 9. of the statutes is amended to read:

AB100,630,6 71.04 (7) (f) 9. Gross Notwithstanding any other provision of this subsection, gross receipts and gain or loss from the sale or exchange of securities.

AB100, s. 1287 Section 1287. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:

AB100,630,14 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section 151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 45.54 38.50, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:

AB100, s. 1288 Section 1288. 71.05 (6) (b) 28. a. of the statutes is amended to read:

AB100,630,20 71.05 (6) (b) 28. a. An amount equal to not more than $3,000 $5,100, or twice the average amount charged by the board of regents of the University of Wisconsin System at 4-year institutions for resident undergraduate academic fees for the most recent fall semester, as determined by the board of regents by September 1 of that semester, whichever is greater, per student for each year to which the claim relates.

AB100, s. 1289 Section 1289. 71.05 (22) (f) 4. a. of the statutes is amended to read:

AB100,631,2 71.05 (22) (f) 4. a. For taxable years beginning after December 31, 1997, in the case of a taxpayer with respect to whom a deduction exemption under s. 71.07 (8) sub. (23) (b) 2. is allowable to another person, the Wisconsin standard deduction shall be the lesser of the amount under subd. 4. b. or one of the amounts calculated under subd. 4. c., whichever amount under subd. 4. c. is greater.

AB100, s. 1290 Section 1290. 71.05 (22) (g) of the statutes is amended to read:

AB100,631,13 71.05 (22) (g) Nonresidents. With respect to nonresident natural persons deriving income from property located, business transacted or personal or professional services performed in this state, including natural persons changing their domicile into or from this state, the Wisconsin standard deduction and itemized deductions are based on federal adjusted gross income, and as provided in par. (f) 4., and are limited by such fraction of that amount as Wisconsin adjusted gross income is of federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses.

AB100, s. 1291 Section 1291. 71.05 (22) (h) of the statutes is amended to read:

AB100,631,24 71.05 (22) (h) Part-year residents. If a person and that person's spouse are not both domiciled in this state during the entire taxable year, the Wisconsin standard deduction or itemized deduction on a joint return is determined by multiplying the Wisconsin standard deduction or itemized deduction, each calculated on the basis of federal adjusted gross income, and as provided in par. (f) 4., by a fraction the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. For a married person who is not domiciled in this state for the entire taxable year and who files a separate return, the Wisconsin standard deduction and itemized deduction are determined under par. (g).

AB100, s. 1292 Section 1292. 71.07 (2dd) (a) 1. of the statutes is amended to read:

AB100,632,4 71.07 (2dd) (a) 1. "Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 49.98 or 49.99 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.

AB100, s. 1293 Section 1293. 71.07 (2di) (b) 1. of the statutes is repealed.

AB100, s. 1294 Section 1294. 71.07 (2dL) (c) 1. of the statutes is repealed.

AB100, s. 1295 Section 1295. 71.07 (2dL) (c) 2. of the statutes is renumbered 71.07 (2dL) (c).

AB100, s. 1296 Section 1296. 71.07 (2dL) (d) of the statutes is amended to read:

AB100,632,11 71.07 (2dL) (d) Except as provided in par. (c) 2., the carry-over provisions of s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit under this subsection and apply as if the development zone continued to exist.

AB100, s. 1297 Section 1297. 71.07 (2dm) (hm) of the statutes is amended to read:

AB100,632,20 71.07 (2dm) (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, s. 1298 Section 1298. 71.07 (2dr) (a) of the statutes is amended to read:

AB100,633,19 71.07 (2dr) (a) Credit. Any person may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the person'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. (2dj) nor research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), the person'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. 71.04 (7) (b) 1. and 2. and (d), (db), (dd), (df), (dg), (dh), and (dm) 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. (2di) (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.

AB100, s. 1299 Section 1299. 71.07 (2dx) (a) 5. of the statutes is amended to read:

AB100,634,9 71.07 (2dx) (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. (2dj) (am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.

AB100, s. 1300 Section 1300. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:

AB100,634,16 71.07 (2dx) (b) Credit. (intro.) Except 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, s. 1301 Section 1301. 71.07 (2dx) (b) 2. of the statutes is amended to read:

AB100,634,22 71.07 (2dx) (b) 2. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3) (d) 5. for those jobs.

AB100, s. 1302 Section 1302. 71.07 (2dx) (b) 3. of the statutes is amended to read:

AB100,635,3 71.07 (2dx) (b) 3. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3) (d) 5. for those jobs.

AB100, s. 1303 Section 1303. 71.07 (2dx) (b) 4. of the statutes is amended to read:

AB100,635,11 71.07 (2dx) (b) 4. The amount determined by multiplying the amount determined under s. 560.785 (1) (bm) by the number of full-time jobs retained, as provided in the rules under s. 560.785, excluding jobs for which a credit has been claimed under sub. (2dj), in an enterprise development zone under s. 560.797 and for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3) (d) 5. for those jobs.

AB100, s. 1304 Section 1304. 71.07 (2dx) (b) 5. of the statutes is amended to read:

AB100,635,18 71.07 (2dx) (b) 5. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules under s. 560.785, excluding jobs for which a credit has been claimed under sub. (2dj), in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3) (d) 5. for those jobs.

AB100, s. 1305 Section 1305. 71.07 (3m) (a) 1. b. of the statutes is amended to read:

AB100,635,23 71.07 (3m) (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, s. 1306 Section 1306. 71.07 (3n) (title) of the statutes is amended to read:

AB100,635,25 71.07 (3n) (title) Dairy Livestock farm investment credit.

AB100, s. 1307 Section 1307. 71.07 (3n) (a) 1m. of the statutes is repealed.

AB100, s. 1308 Section 1308. 71.07 (3n) (a) 1n. of the statutes is created to read:

AB100,636,6 71.07 (3n) (a) 1n. "Livestock" means domestic animals used in this state in the production of food, fiber, or other animal products and includes bovine animals, swine, poultry, fish, sheep, and goats. "Livestock" does not include equine animals, deer, ratites, camelidae, or mink.

AB100, s. 1309 Section 1309. 71.07 (3n) (a) 1p. of the statutes is repealed.

AB100, s. 1310 Section 1310. 71.07 (3n) (a) 2. (intro.) of the statutes is amended to read:

AB100,636,13 71.07 (3n) (a) 2. (intro.) "Dairy "Livestock farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal livestock housing, livestock confinement, animal livestock feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals livestock:

AB100, s. 1311 Section 1311. 71.07 (3n) (b) of the statutes is amended to read:

AB100,636,20 71.07 (3n) (b) Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2010, a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 an amount equal to 10% of the amount the claimant paid in the taxable year for dairy livestock farm modernization or expansion related to the operation of the claimant's dairy livestock farm.

AB100, s. 1312 Section 1312. 71.07 (10) of the statutes is amended to read:

AB100,637,2 71.07 (10) Credits not allowed. The credits under s. 71.28 (4) and (5) may not be claimed by partners, including partners of a publicly traded partnership treated as a corporation under s. 71.22 (1) (1k), members of a limited liability company, including members of a limited liability company treated as a corporation under s. 77.22 (1) (1k), or shareholders of a tax-option corporation.

AB100, s. 1313 Section 1313. 71.10 (5g) of the statutes is created to read:

AB100,637,4 71.10 (5g) Veterans trust fund donations. (a) Definitions. In this subsection:

AB100,637,5 1. "Department" means the department of revenue.

AB100,637,6 2. "Veterans trust fund" means the fund under s. 25.36.

AB100,637,10 (b) Voluntary payments. 1. `Designation on return.' Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return any amount of additional payment or any amount of a refund due that individual as a veterans trust fund donation.

AB100,637,13 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return as a veterans trust fund donation when the individual files a tax return.

AB100,637,17 3. `Designation deducted from refund.' Except as provided in par. (d), if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) and (3m), the department of revenue shall deduct the amount designated on the return as a veterans trust fund donation from the amount of the refund.

AB100,637,21 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return as a veterans trust fund donation:

AB100,638,2 1. The department shall reduce the designation for the veterans trust fund to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return as a veterans trust fund donation.

AB100,638,4 2. The designation for the veterans trust fund donation is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.

AB100,638,11 (d) Errors; insufficient refund. If an individual is owed a refund which does not equal or exceed the amount designated on the return as a veterans trust fund donation, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections, the department shall reduce the designation for the veterans trust fund donation to reflect the actual amount of the refund that the individual is otherwise owed, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections.

AB100,638,13 (e) Conditions. If an individual places any conditions on a designation for the veterans trust fund donation, the designation is void.

AB100,638,16 (f) Void designation. If a designation for the veterans trust fund donation is void, the department shall disregard the designation and determine amounts due, owed, refunded, and received without regard to the void designation.

AB100,638,18 (g) Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return.

AB100,638,21 (h) Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of veterans affairs, the department of administration, and the state treasurer:

AB100,638,24 1. The total amount of the administrative costs, including data processing costs, incurred by the department in administering this subsection during the previous fiscal year.

AB100,639,2 2. The total amount received from all designations for veterans trust fund donations made by taxpayers during the previous fiscal year.

AB100,639,5 3. The net amount remaining after the administrative costs, including data processing costs, under subd. 1. are subtracted from the total received under subd. 2.