LRB-1942/2
JK:wlj:jf
2005 - 2006 LEGISLATURE
February 28, 2005 - Introduced by Representatives Nerison, Gronemus, Ott,
Gard, Vruwink, Ainsworth, Towns, Loeffelholz, Suder, Kestell, Albers,
Ballweg, Davis, Freese, Gunderson, Hahn, Krawczyk, McCormick, Musser,
Hundertmark, Owens, Pettis and Townsend, cosponsored by Senators
Kapanke, Erpenbach, A. Lasee and Roessler. Referred to Committee on
Agriculture.
AB145,1,7
1An Act to renumber 71.07 (3n) (b), 71.28 (3n) (b) and 71.47 (3n) (b);
to amend
271.07 (3n) (a) 2. (intro.), 71.28 (3n) (a) 2. (intro.) and 71.47 (3n) (a) 2. (intro.); and
3to create 71.07 (3n) (a) 3., 71.07 (3n) (a) 4., 71.07 (3n) (a) 5., 71.07 (3n) (b) 2.,
471.28 (3n) (a) 3., 71.28 (3n) (a) 4., 71.28 (3n) (a) 5., 71.28 (3n) (b) 2., 71.47 (3n)
5(a) 3., 71.47 (3n) (a) 4., 71.47 (3n) (a) 5. and 71.47 (3n) (b) 2. of the statutes;
6relating to: creating an income and franchise tax credit for livestock farm
7modernization or expansion.
Analysis by the Legislative Reference Bureau
Under current law, for taxable years that begin after December 31, 2003, and
before January 1, 2010, a person may claim an income and franchise tax credit equal
to 10 percent of the amount the person paid in the taxable year for dairy farm
modernization or expansion. Current law defines "dairy farm modernization or
expansion" as 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, if used exclusively related
to dairy animals. The term "used exclusively" is not defined.
This bill clarifies that the dairy investment credit applies to property and
equipment that is acquired and placed in service in this state during taxable years
that begin after December 31, 2003, and before January 1, 2010. In addition, under
the bill, "used exclusively" means used to the exclusion of all other uses except for
other use not exceeding 5 percent of total use.
This bill also expands the dairy investment credit so that, for taxable years
beginning after December 31, 2004, and before January 1, 2011, a person may claim
the credit in an amount equal to 10 percent of the amount that the person paid in the
taxable year to modernize or expand the person's livestock farm. Under the bill,
"livestock" means domestic animals, other than dairy animals, used in this state for
the production of food, fiber, or other animal products, including bovine animals,
swine, poultry, fish, sheep, and goats, but excluding equine animals, deer, ratites,
camelidae, and mink.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB145, s. 1
1Section
1. 71.07 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB145,2,72
71.07
(3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the
3construction, the improvement, or the acquisition of buildings or facilities, or the
4acquisition of equipment, for dairy animal housing, confinement, animal feeding,
5milk production, or waste management, including the following, if used exclusively
6related to dairy animals
and if acquired and placed in service in this state during
7taxable years that begin after December 31, 2003, and before January 1, 2010:
AB145, s. 2
8Section
2. 71.07 (3n) (a) 3. of the statutes is created to read:
AB145,2,129
71.07
(3n) (a) 3. "Livestock" means domestic animals, other than dairy
10animals, used in this state in the production of food, fiber, or other animal products
11and includes bovine animals, swine, poultry, fish, sheep, and goats. "Livestock" does
12not include equine animals, deer, ratites, camelidae, or mink.
AB145, s. 3
13Section
3. 71.07 (3n) (a) 4. of the statutes is created to read:
AB145,3,414
71.07
(3n) (a) 4. "Livestock farm modernization or expansion" means the
15construction, the improvement, or the acquisition of buildings or facilities, or the
1acquisition of equipment, for livestock housing, confinement, feeding, or waste
2management, including the following, if used exclusively related to livestock and if
3acquired and placed in service in this state during taxable years that begin after
4December 31, 2004, and before January 1, 2011:
AB145,3,55
a. Birthing structures.
AB145,3,66
b. Rearing structures.
AB145,3,77
c. Feedlot structures.
AB145,3,88
d. Feed storage and handling equipment.
AB145,3,1010
f. Watering facilities.
AB145,3,1212
h. Manure pumping and storage facilities.
AB145,3,1313
i. Digesters.
AB145,3,1414
j. Equipment used to produce energy.
AB145,3,1515
k. Fish hatchery buildings on fish farms.
AB145,3,1616
L. Fish processing buildings on fish farms.
AB145,3,1717
m. Fish rearing ponds on fish farms.
AB145, s. 4
18Section
4. 71.07 (3n) (a) 5. of the statutes is created to read:
AB145,3,2019
71.07
(3n) (a) 5. "Used exclusively" means used to the exclusion of all other uses
20except for other use not exceeding 5 percent of total use.
AB145, s. 5
21Section
5. 71.07 (3n) (b) of the statutes is renumbered 71.07 (3n) (b) 1.
AB145, s. 6
22Section
6. 71.07 (3n) (b) 2. of the statutes is created to read:
AB145,4,323
71.07
(3n) (b) 2. Subject to the limitations provided in this subsection, for
24taxable years that begin after December 31, 2004, and before January 1, 2011, a
25claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 an
1amount equal to 10 percent of the amount the claimant paid in the taxable year for
2livestock farm modernization or expansion related to the operation of the claimant's
3livestock farm.
AB145, s. 7
4Section
7. 71.28 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB145,4,105
71.28
(3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the
6construction, the improvement, or the acquisition of buildings or facilities, or
7acquiring equipment, for dairy animal housing, confinement, animal feeding, milk
8production, or waste management, including the following, if used exclusively
9related to dairy animals
and if acquired and placed in service in this state during
10taxable years that begin after December 31, 2003, and before January 1, 2010:
AB145, s. 8
11Section
8. 71.28 (3n) (a) 3. of the statutes is created to read:
AB145,4,1512
71.28
(3n) (a) 3. "Livestock" means domestic animals, other than dairy
13animals, used in this state in the production of food, fiber, or other animal products
14and includes bovine animals, swine, poultry, fish, sheep, and goats. "Livestock" does
15not include equine animals, deer, ratites, camelidae, or mink.
AB145, s. 9
16Section
9. 71.28 (3n) (a) 4. of the statutes is created to read:
AB145,4,2217
71.28
(3n) (a) 4. "Livestock farm modernization or expansion" means the
18construction, the improvement, or the acquisition of buildings or facilities, or the
19acquisition of equipment, for livestock housing, confinement, feeding, or waste
20management, including the following, if used exclusively related to livestock and if
21acquired and placed in service in this state during taxable years that begin after
22December 31, 2004, and before January 1, 2011:
AB145,4,2323
a. Birthing structures.
AB145,4,2424
b. Rearing structures.
AB145,4,2525
c. Feedlot structures.
AB145,5,1
1d. Feed storage and handling equipment.
AB145,5,33
f. Watering facilities.
AB145,5,55
h. Manure pumping and storage facilities.
AB145,5,77
j. Equipment used to produce energy.