LRB-3311/1
JK:lmk:rs
2005 - 2006 LEGISLATURE
August 16, 2005 - Introduced by Representatives Wieckert, Davis, Musser, Hahn,
Townsend, Petrowski, Towns, Nass, Mursau, Ott, Albers, Hines, Van Roy and
Gronemus, cosponsored by Senators Leibham and Roessler. Referred to
Committee on Agriculture.
AB606,1,6
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and
to create 71.07 (5e), 71.10 (4) (cq), 71.28 (5e), 71.30
3(3) (dq), 71.47 (5e) and 71.49 (1) (dq) of the statutes;
relating to: an income and
4franchise tax credit for sales and use taxes paid on the purchase of electricity
5used in agricultural biotechnology and on the purchase of products used on
6livestock.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for the amount of the sales
and use tax that a taxpayer pays in the taxable year on the purchase of electricity
used in agricultural biotechnology and on the purchase of products used on livestock.
If the amount of the credit exceeds the taxpayer's tax liability, the taxpayer does not
receive a refund, but, instead, may claim the amount of any unused credit in
subsequent taxable years.
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:
AB606, s. 1
1Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB606,2,62
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
and (5d)
, and (5e) 4and not passed through by a partnership, limited liability company, or tax-option
5corporation that has added that amount to the partnership's, company's, or
6tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB606, s. 2
7Section
2. 71.07 (5e) of the statutes is created to read:
AB606,2,98
71.07
(5e) Agricultural biotechnology and livestock products credit. (a)
9Definitions. In this subsection:
AB606,2,1710
1. "Agricultural biotechnology" means the application of technologies,
11including recombinant deoxyribonucleic acid techniques, biochemistry, molecular
12and cellular biology, genetics, genetic engineering, biological cell fusion techniques,
13and new bioprocesses, that use living organisms or parts of organisms to produce or
14modify products, improve plants or animals used in agriculture, develop
15microorganisms for specific agricultural uses, identify targets for small molecule
16pharmaceutical development for agricultural use, or transform biological systems
17into useful agricultural processes and products.
AB606,2,1818
2. "Claimant" means a person who files a claim under this subsection.
AB606,2,2319
(b)
Filing claims. Subject to the limitations provided in this subsection, a
20claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08,
21up to the amount of those taxes, an amount that is equal to the amount of the taxes
22imposed under ss. 71.52 and 71.53 that the claimant paid in the taxable year on the
23purchase of any of the following:
AB606,2,2524
1. Electricity consumed in product research or product development for
25agricultural biotechnology in this state.
AB606,3,2
12. Vitamins, feed supplements, or hormones, if such products are used on farm
2livestock.
AB606,3,103
(c)
Limitations. Partnerships, limited liability companies, and tax-option
4corporations may not claim the credit under this subsection, but the eligibility for,
5and the amount of, the credit are based on their payment of amounts described under
6par. (b). A partnership, limited liability company, or tax-option corporation shall
7compute the amount of credit that each of its partners, members, or shareholders
8may claim and shall provide that information to each of them. Partners, members
9of limited liability companies, and shareholders of tax-option corporations may
10claim the credit in proportion to their ownership interests.
AB606,3,1211
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
12s. 71.28 (4), applies to the credit under this subsection.
AB606, s. 3
13Section
3. 71.10 (4) (cq) of the statutes is created to read:
AB606,3,1514
71.10
(4) (cq) Agricultural biotechnology and livestock products credit under
15s. 71.07 (5e).
AB606, s. 4
16Section
4. 71.21 (4) of the statutes is amended to read:
AB606,3,1917
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
18(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t),
and (5b)
, and (5e) and passed
19through to partners shall be added to the partnership's income.
AB606, s. 5
20Section
5. 71.26 (2) (a) of the statutes is amended to read:
AB606,4,1321
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
22the gross income as computed under the Internal Revenue Code as modified under
23sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
24computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
257., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
1under this paragraph at the time that the taxpayer first claimed the credit plus the
2amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
3(1ds), (1dx), (3g), (3n), (3t),
and (5b)
, and (5e) and not passed through by a
4partnership, limited liability company, or tax-option corporation that has added that
5amount to the partnership's, limited liability company's, or tax-option corporation's
6income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
7other disposition of assets the gain from which would be wholly exempt income, as
8defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
9minus deductions, as computed under the Internal Revenue Code as modified under
10sub. (3), plus or minus, as appropriate, an amount equal to the difference between
11the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
12otherwise disposed of in a taxable transaction during the taxable year, except as
13provided in par. (b) and s. 71.45 (2) and (5).
AB606, s. 6
14Section
6. 71.28 (5e) of the statutes is created to read:
AB606,4,1615
71.28
(5e) Agricultural biotechnology and livestock products credit. (a)
16Definitions. In this subsection:
AB606,4,2417
1. "Agricultural biotechnology" means the application of technologies,
18including recombinant deoxyribonucleic acid techniques, biochemistry, molecular
19and cellular biology, genetics, genetic engineering, biological cell fusion techniques,
20and new bioprocesses, that use living organisms or parts of organisms to produce or
21modify products, improve plants or animals used in agriculture, develop
22microorganisms for specific agricultural uses, identify targets for small molecule
23pharmaceutical development for agricultural use, or transform biological systems
24into useful agricultural processes and products.
AB606,4,2525
2. "Claimant" means a person who files a claim under this subsection.
AB606,5,5
1(b)
Filing claims. Subject to the limitations provided in this subsection, a
2claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
3amount of those taxes, an amount that is equal to the amount of the taxes imposed
4under ss. 71.52 and 71.53 that the claimant paid in the taxable year on the purchase
5of any of the following:
AB606,5,76
1. Electricity consumed in product research or product development for
7agricultural biotechnology in this state.
AB606,5,98
2. Vitamins, feed supplements, or hormones, if such products are used on farm
9livestock.
AB606,5,1710
(c)
Limitations. Partnerships, limited liability companies, and tax-option
11corporations may not claim the credit under this subsection, but the eligibility for,
12and the amount of, the credit are based on their payment of amounts described under
13par. (b). A partnership, limited liability company, or tax-option corporation shall
14compute the amount of credit that each of its partners, members, or shareholders
15may claim and shall provide that information to each of them. Partners, members
16of limited liability companies, and shareholders of tax-option corporations may
17claim the credit in proportion to their ownership interests.
AB606,5,1918
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
19sub. (4), applies to the credit under this subsection.
AB606, s. 7
20Section
7. 71.30 (3) (dq) of the statutes is created to read:
AB606,5,2221
71.30
(3) (dq) Agricultural biotechnology and livestock products credit under
22s. 71.28 (5e).
AB606, s. 8
23Section
8. 71.34 (1) (g) of the statutes is amended to read:
AB606,6,3
171.34
(1) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
3(3n), (3t),
and (5b)
, and (5e) and passed through to shareholders.
AB606, s. 9
4Section
9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB606,6,105
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dx), (3n),
and (5b)
, and (5e) and not passed
7through by a partnership, limited liability company, or tax-option corporation that
8has added that amount to the partnership's, limited liability company's, or
9tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
10credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB606, s. 10
11Section
10. 71.47 (5e) of the statutes is created to read:
AB606,6,1312
71.47
(5e) Agricultural biotechnology and livestock products credit. (a)
13Definitions. In this subsection:
AB606,6,2114
1. "Agricultural biotechnology" means the application of technologies,
15including recombinant deoxyribonucleic acid techniques, biochemistry, molecular
16and cellular biology, genetics, genetic engineering, biological cell fusion techniques,
17and new bioprocesses, that use living organisms or parts of organisms to produce or
18modify products, improve plants or animals used in agriculture, develop
19microorganisms for specific agricultural uses, identify targets for small molecule
20pharmaceutical development for agricultural use, or transform biological systems
21into useful agricultural processes and products.
AB606,6,2222
2. "Claimant" means a person who files a claim under this subsection.
AB606,7,223
(b)
Filing claims. Subject to the limitations provided in this subsection, a
24claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
25amount of those taxes, an amount that is equal to the amount of the taxes imposed
1under ss. 71.52 and 71.53 that the claimant paid in the taxable year on the purchase
2of any of the following:
AB606,7,43
1. Electricity consumed in product research or product development for
4agricultural biotechnology in this state.
AB606,7,65
2. Vitamins, feed supplements, or hormones, if such products are used on farm
6livestock.
AB606,7,147
(c)
Limitations. Partnerships, limited liability companies, and tax-option
8corporations may not claim the credit under this subsection, but the eligibility for,
9and the amount of, the credit are based on their payment of amounts described under
10par. (b). A partnership, limited liability company, or tax-option corporation shall
11compute the amount of credit that each of its partners, members, or shareholders
12may claim and shall provide that information to each of them. Partners, members
13of limited liability companies, and shareholders of tax-option corporations may
14claim the credit in proportion to their ownership interests.
AB606,7,1615
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
16s. 71.28 (4), applies to the credit under this subsection.