SB40-ASA1,1016,2017 71.47 (5e) (c) 3. The total amount of the credits and exemptions the sales and
18use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
19by all claimants under this subsection and ss. 71.07 (5e), 71.28 (5e), and 77.54 (48)
2077.585 (9) is $7,500,000, as determined by the department of commerce.
SB40-ASA1, s. 1824 21Section 1824. 71.47 (5h) (a) 4. of the statutes is amended to read:
SB40-ASA1,1017,422 71.47 (5h) (a) 4. "Previously owned property" means real property that the
23claimant or a related person owned during the 2 years prior to doing business in this
24state as a film production company and for which the claimant may not deduct a loss
25from the sale of the property to, or an exchange of the property with, the related

1person under section 267 of the Internal Revenue Code, except that section 267 of the
2Internal Revenue Code is modified so that if the claimant owns any part of the
3property, rather than 50 percent ownership, the claimant is subject to section 267 of
4the Internal Revenue Code for purposes of this subsection
.
SB40-ASA1, s. 1825 5Section 1825. 71.47 (5h) (c) 2. of the statutes is amended to read:
SB40-ASA1,1017,106 71.47 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount
7expended to construct, rehabilitate, remodel, or repair real property, if the claimant
8began the physical work of construction, rehabilitation, remodeling, or repair, or any
9demolition or destruction in preparation for the physical work, after December 31,
102007, or if and the completed project is placed in service after December 31, 2007.
SB40-ASA1, s. 1826 11Section 1826. 71.47 (5h) (c) 3. of the statutes is amended to read:
SB40-ASA1,1017,1512 71.47 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount
13expended to acquire real property, if the property is not previously owned property
14and if the claimant acquires the property after December 31, 2007, or if and the
15completed project is placed in service after December 31, 2007.
SB40-ASA1, s. 1827 16Section 1827. 71.47 (5i) of the statutes is created to read:
SB40-ASA1,1017,1817 71.47 (5i) Electronic medical records credit. (a) Definitions. In this
18subsection, "claimant" means a person who files a claim under this subsection.
SB40-ASA1,1017,2519 (b) Filing claims. Subject to the limitations provided in this subsection, for
20taxable years beginning after December 31, 2008, a claimant may claim as a credit
21against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount
22equal to 50 percent of the amount the claimant paid in the taxable year for
23information technology hardware or software that is used to maintain medical
24records in electronic form, if the claimant is a health care provider, as defined in s.
25146.81 (1).
SB40-ASA1,1018,3
1(c) Limitations. 1. The maximum amount of the credits that may be claimed
2under this subsection and ss. 71.07 (5i) and 71.28 (5i) in a taxable year is
3$10,000,000, as allocated under s. 560.204.
SB40-ASA1,1018,114 2. Partnerships, limited liability companies, and tax-option corporations may
5not claim the credit under this subsection, but the eligibility for, and the amount of,
6the credit are based on their payment of amounts under par. (b). A partnership,
7limited liability company, or tax-option corporation shall compute the amount of
8credit that each of its partners, members, or shareholders may claim and shall
9provide that information to each of them. Partners, members of limited liability
10companies, and shareholders of tax-option corporations may claim the credit in
11proportion to their ownership interests.
SB40-ASA1,1018,1312 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
13s. 71.28 (4), applies to the credit under this subsection.
SB40-ASA1, s. 1828 14Section 1828. 71.47 (5j) of the statutes is created to read:
SB40-ASA1,1018,1615 71.47 (5j) Ethanol and biodiesel fuel pump credit. (a) Definitions. In this
16subsection:
SB40-ASA1,1018,1717 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).
SB40-ASA1,1018,1818 2. "Claimant" means a person who files a claim under this subsection.
SB40-ASA1,1018,1919 3. "Motor vehicle fuel" has the meaning given in s. 78.005 (13).
SB40-ASA1,1019,220 (b) Filing claims. Subject to the limitations provided in this subsection, for
21taxable years beginning after December 31, 2007, and before January 1, 2018, a
22claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
23amount of the taxes, an amount that is equal to 25 percent of the amount that the
24claimant paid in the taxable year to install or retrofit pumps located in this state that

1dispense motor vehicle fuel consisting of at least 85 percent ethanol or at least 20
2percent biodiesel fuel.
SB40-ASA1,1019,63 (c) Limitations. 1. The maximum amount of the credit that a claimant may
4claim under this subsection in a taxable year is an amount that is equal to $5,000 for
5each service station for which the claimant has installed or retrofitted pumps as
6described under par. (b).
SB40-ASA1,1019,147 2. Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their payment of amounts under par. (b). A partnership,
10limited liability company, or tax-option corporation shall compute the amount of
11credit that each of its partners, members, or shareholders may claim and shall
12provide that information to each of them. Partners, members of limited liability
13companies, and shareholders of tax-option corporations may claim the credit in
14proportion to their ownership interests.
SB40-ASA1,1019,1615 (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.
SB40-ASA1, s. 2116m 17Section 2116m. 71.47 (5k) of the statutes is created to read:
SB40-ASA1,1019,1918 71.47 (5k) Community rehabilitation program credit. (a) Definitions. In this
19subsection:
SB40-ASA1,1019,2020 1. "Claimant" means a person who files a claim under this subsection.
SB40-ASA1,1019,2521 2. "Community rehabilitation program" means a nonprofit entity, county,
22municipality, or state or federal agency that directly provides, or facilitates the
23provision of, vocational rehabilitation services to individuals who have disabilities
24to maximize the employment opportunities, including career advancement, of such
25individuals.
SB40-ASA1,1020,2
13. "Vocational rehabilitation services" include education, training,
2employment, counseling, therapy, placement, and case management.
SB40-ASA1,1020,53 4. "Work" includes production, packaging, assembly, food service, custodial
4service, clerical service, and other commercial activities that improve employment
5opportunities for individuals who have disabilities.
SB40-ASA1,1020,116 (b) Filing claims. Subject to the limitations provided in this subsection, for
7taxable years beginning after July 1, 2007, a claimant may claim as a credit against
8the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to
95 percent of the amount the claimant paid in the taxable year to a community
10rehabilitation program to perform work for the claimant's business, pursuant to a
11contract.
SB40-ASA1,1020,1512 (c) Limitations. 1. The maximum amount of the credit that any claimant may
13claim under this subsection in a taxable year is $25,000 for each community
14rehabilitation program for which the claimant enters into a contract to have the
15community rehabilitation program perform work for the claimant's business.
SB40-ASA1,1020,2016 2. No credit may be claimed under this subsection unless the claimant submits
17with the claimant's return a form, as prescribed by the department of revenue, that
18verifies that the claimant has entered into a contract with a community
19rehabilitation program and that the program has received payment from the
20claimant for work provided by the program, consistent with par. (b).
SB40-ASA1,1021,321 3. Partnerships, limited liability companies, and tax-option corporations may
22not claim the credit under this subsection, but the eligibility for, and the amount of,
23the credit are based on their payment of amounts under par. (b). A partnership,
24limited liability company, or tax-option corporation shall compute the amount of
25credit that each of its partners, members, or shareholders may claim and shall

1provide that information to each of them. Partners, members of limited liability
2companies, and shareholders of tax-option corporations may claim the credit in
3proportion to their ownership interests.
SB40-ASA1,1021,54 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
5s. 71.28 (4), applies to the credit under this subsection.
SB40-ASA1, s. 2116n 6Section 2116n. 71.49 (1) (bn) of the statutes is created to read:
SB40-ASA1,1021,77 71.49 (1) (bn) Community rehabilitation program credit under s. 71.47 (5k).
SB40-ASA1, s. 1829 8Section 1829. 71.49 (1) (dd) of the statutes is created to read:
SB40-ASA1,1021,109 71.49 (1) (dd) Dairy manufacturing facility investment credit under s. 71.47
10(3p).
SB40-ASA1, s. 1830 11Section 1830. 71.49 (1) (ds) of the statutes is created to read:
SB40-ASA1,1021,1212 71.49 (1) (ds) Ethanol and biodiesel fuel pump credit under s. 71.47 (5j).
SB40-ASA1, s. 1831 13Section 1831. 71.49 (1) (epa) of the statutes is created to read:
SB40-ASA1,1021,1414 71.49 (1) (epa) Electronic medical records credit under s. 71.47 (5i).
SB40-ASA1, s. 1832 15Section 1832. 71.49 (1) (epp) of the statutes is renumbered 71.49 (1) (eps) and
16amended to read:
SB40-ASA1,1021,1717 71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
SB40-ASA1, s. 1833 18Section 1833. 71.49 (1) (f) of the statutes is amended to read:
SB40-ASA1,1021,2219 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47
20(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
21s. 71.47 (2m), enterprise zone jobs credit under s. 71.47 (3w), film production services
22credit under s. 71.28 (5f) (b) 2.,
and estimated tax payments under s. 71.48.
SB40-ASA1, s. 2121s 23Section 2121s. 71.54 (1) (f) (intro.) of the statutes is amended to read:
SB40-ASA1,1022,3
171.54 (1) (f) 2001 and thereafter. (intro.) The Subject to sub. (2m), the amount
2of any claim filed in 2001 and thereafter and based on property taxes accrued or rent
3constituting property taxes accrued during the previous year is limited as follows:
SB40-ASA1, s. 2121t 4Section 2121t. 71.54 (2) (b) 3. of the statutes is amended to read:
SB40-ASA1,1022,65 71.54 (2) (b) 3. In Subject to sub. (2m), in calendar year 1990 or any subsequent
6calendar year, $1,450.
SB40-ASA1, s. 1834 7Section 1834. 71.54 (2m) of the statutes is created to read:
SB40-ASA1,1022,218 71.54 (2m) Indexing for inflation; 2007 and thereafter. (a) For taxable years
9beginning after December 31, 2006, the dollar amounts for the threshold income
10under sub. (1) (f) 1. and 2., the maximum household income under sub. (1) (f) 3., and
11the maximum property taxes under sub. (2) (b) 3. shall be increased each year by a
12percentage equal to the percentage change between the U.S. consumer price index
13for all urban consumers, U.S. city average, for the month of August of the previous
14year and the U.S. consumer price index for all urban consumers, U.S. city average,
15for the month of August 2005, as determined by the federal department of labor.
16Each amount that is revised under this paragraph shall be rounded to the nearest
17multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount
18is a multiple of $5, such an amount shall be increased to the next higher multiple of
19$10. The department of revenue shall annually adjust the changes in dollar amounts
20required under this paragraph and incorporate the changes into the income tax
21forms and instructions.
SB40-ASA1,1023,222 (b) The department of revenue shall annually adjust the slope under sub. (1)
23(f) 2. such that as a claimant's income increases from the threshold income as
24calculated under par. (a), to an amount that exceeds the maximum household income
25as calculated under par. (a), the credit that may be claimed is reduced to $0 and the

1department of revenue shall incorporate the changes into the income tax forms and
2instructions.
SB40-ASA1, s. 1835 3Section 1835. 71.738 (1d) of the statutes is repealed.
SB40-ASA1, s. 1836 4Section 1836. 71.738 (2d) of the statutes is repealed.
SB40-ASA1, s. 1837 5Section 1837. 71.74 (14) of the statutes is amended to read:
SB40-ASA1,1023,216 71.74 (14) Additional remedy to collect tax. The department may also
7proceed under s. 71.91 (5) for the collection of any additional assessment of income
8or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and
9before the same shall have become delinquent, when it has reasonable grounds to
10believe that the collection of such additional assessment will be jeopardized by delay.
11In such cases notice of the intention to so proceed shall be given by registered mail
12to the taxpayer, and the warrant of the department shall not issue if the taxpayer
13within 10 days after such notice furnishes a bond in such amount, not exceeding
14double the amount of the tax, and with such sureties as the department shall
15approve, conditioned upon the payment of so much of the additional taxes as shall
16finally be determined to be due, together with interest thereon as provided by s. 71.82
17(1) (a). Nothing in this subsection shall affect the review of additional assessments
18provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and any amounts
19collected under this subsection shall be deposited with the secretary of
20administration
department and disbursed after final determination of the taxes as
21are amounts deposited under s. 71.90 (2).
SB40-ASA1, s. 1838 22Section 1838. 71.765 of the statutes is repealed.
SB40-ASA1, s. 1839 23Section 1839. 71.775 (3) (a) 2. of the statutes is amended to read:
SB40-ASA1,1024,224 71.775 (3) (a) 2. The partner, member, shareholder, or beneficiary has no
25Wisconsin income other than his or her
partner's, member's, shareholder's, or

1beneficiary's
share of income from the pass-through entity that is attributable to this
2state and his or her share of such income is less than $1,000.
SB40-ASA1, s. 1840 3Section 1840. 71.775 (3) (a) 3. of the statutes is created to read:
SB40-ASA1,1024,114 71.775 (3) (a) 3. The nonresident partner, member, shareholder, or beneficiary
5files an affidavit with the department, in the form and manner prescribed by the
6department, whereby the nonresident partner, member, shareholder, or beneficiary
7agrees to file a Wisconsin income or franchise tax return and be subject to the
8personal jurisdiction of the department, the tax appeals commission, and the courts
9of this state for the purpose of determining and collecting Wisconsin income and
10franchise taxes, including estimated tax payments, together with any related
11interest and penalties.
SB40-ASA1, s. 1841 12Section 1841. 71.775 (4) (b) 2. of the statutes is amended to read:
SB40-ASA1,1024,2413 71.775 (4) (b) 2. A pass-through entity that pays the tax withheld under sub.
14(2) as provided under subd. 1. is not subject to an underpayment of estimated tax
15under s. 71.09 or 71.29, if 90 percent of the tax that is due for the current taxable year
16is paid by the unextended due date or if 100 percent of the tax that is due for the
17taxable year immediately preceding the current taxable year is paid by the
18unextended due date and the taxable year immediately preceding the current
19taxable year was a 12-month period. Interest
Except as provided in par. (f), interest
20at the rate of 12 percent shall be imposed on the unpaid amount of the tax withheld
21due under sub. (2) during any extension period and interest at the rate of 18 percent
22shall be imposed on the unpaid amount of the tax withheld due under sub. (2) for the
23period beginning with the extended due date and ending with the date that the
24unpaid amount is paid in full.
SB40-ASA1, s. 1842 25Section 1842. 71.775 (4) (d) of the statutes is amended to read:
SB40-ASA1,1025,9
171.775 (4) (d) A nonresident partner, member, shareholder, or beneficiary of a
2pass-through entity may claim a credit, as prescribed by the department, on his or
3her Wisconsin income or franchise tax return for the amount withheld under sub. (2)
4on his or her behalf for the tax period for which the income of the pass-through entity
5is reported
. For purposes of this paragraph determining whether interest under s.
671.84 applies to a nonresident partner, member, shareholder, or beneficiary
, the
7amount withheld under sub. (2) is considered to be paid on the last day of the
8pass-through entity's taxable year for which the tax is paid
in 4 equal quarterly
9installments
.
SB40-ASA1, s. 1843 10Section 1843. 71.775 (4) (f) of the statutes is amended to read:
SB40-ASA1,1025,2111 71.775 (4) (f) If a pass-through entity subject to withholding under this section
12fails to withhold pay the tax as required by this section, the pass-through entity shall
13be liable for any unpaid tax, interest, and penalties otherwise assessable to the
14nonresident partner, member, shareholder, or beneficiary with respect to income
15from the pass-through entity
. If a nonresident partner, member, shareholder, or
16beneficiary of the pass-through entity files a return and pays the tax due, the
17pass-through entity shall not be liable for the tax, but shall be liable for any interest
18and penalties otherwise applicable for failure to withhold, as
the penalty provided
19under ss. 71.82 (2) (d) and s. 71.83 (1) (a) 1. and for any interest otherwise assessable
20to the nonresident partner, member, shareholder, or beneficiary with respect to
21income from the pass-through entity
.
SB40-ASA1, s. 1844 22Section 1844. 71.80 (20) of the statutes is amended to read:
SB40-ASA1,1026,323 71.80 (20) Magnetic media Electronic filing. If the internal revenue service
24requires a person to file information returns or wage statements on magnetic media
25or in other machine-readable form
electronically for federal income tax purposes, the

1person shall also file the comparable state information returns or wage statements
2on magnetic media or in other machine-readable form electronically with the
3department of revenue for income or franchise tax purposes.
SB40-ASA1, s. 1845 4Section 1845. 71.805 of the statutes is created to read:
SB40-ASA1,1026,6 571.805 Tax avoidance transactions voluntary compliance program. (1)
6Definitions. In this section:
SB40-ASA1,1026,137 (a) "Tax avoidance transaction" means a transaction, plan, or arrangement
8devised for the principal purpose of avoiding federal or Wisconsin income or
9franchise tax. "Tax avoidance transaction" includes a listed transaction as provided
10under U.S. department of the treasury regulations as of the effective date of this
11paragraph .... [revisor inserts date], and may include a transaction, as determined
12by the department, that provides a tax benefit for Wisconsin income or franchise tax
13purposes without providing a similar benefit for federal income tax purposes.
SB40-ASA1,1026,1614 (b) "Taxpayer" means a person who is subject to the taxes imposed under this
15chapter and who has a tax liability attributable to using a tax avoidance transaction
16for any taxable year beginning before January 1, 2007.
SB40-ASA1,1026,18 17(2) Penalty waiver or abatement. All of the following apply with regard to a
18taxpayer who satisfies the conditions under sub. (3):
SB40-ASA1,1026,2219 (a) Except as provided under sub. (4) (b), the department shall waive or abate
20all penalties that are applicable to the underreporting or underpayment of Wisconsin
21income or franchise taxes attributable to using a tax avoidance transaction for any
22taxable year for which the taxpayer satisfies the conditions under sub. (3).
SB40-ASA1,1026,2523 (b) The department shall not seek a criminal prosecution against the taxpayer
24with respect to using a tax avoidance transaction for any taxable year for which the
25taxpayer satisfies the conditions under sub. (3).
SB40-ASA1,1027,3
1(3) Taxpayer eligibility. A taxpayer is eligible for the benefits described under
2sub. (2) (a) and (b), if, during the period beginning on October 1, 2007, and ending
3on February 29, 2008, the taxpayer does the following:
SB40-ASA1,1027,94 (a) Files an amended Wisconsin tax return for each taxable year for which the
5taxpayer has previously filed a Wisconsin tax return that uses a tax avoidance
6transaction to underreport the taxpayer's Wisconsin income or franchise tax liability
7and the amended return reports the total Wisconsin net income and tax for the
8taxable year, computed without regard to any tax avoidance transaction and without
9regard to any other adjustment that is unrelated to any tax avoidance transaction.
SB40-ASA1,1027,1710 (b) Pays, in full, for each taxable year for which an amended return is filed
11under par. (a), the entire amount of Wisconsin income or franchise tax and interest
12due that is attributable to using a tax avoidance transaction, except that the
13secretary of revenue may enter into an agreement with the taxpayer to make
14payments in installments. A taxpayer who does not comply with an installment
15agreement provided under this paragraph is ineligible to receive the benefits
16described under sub. (2) (a) and (b) and the total amount of tax, interest, and
17penalties shall be immediately due and payable.
SB40-ASA1,1027,21 18(4) Limitations and administration. (a) A taxpayer who receives the benefits
19described under sub. (2) may not file an appeal or a claim for credit or refund with
20respect to the tax avoidance transactions for the taxable years for which the taxpayer
21satisfied the conditions under sub. (3).
SB40-ASA1,1027,2522 (b) The department may not waive or abate a penalty as provided under sub.
23(2) (a) if the penalty relates to an amount of Wisconsin income and franchise tax that
24is attributable to a tax avoidance transaction and assessed or paid prior to October
251, 2007, or after February 29, 2008.
SB40-ASA1, s. 1846
1Section 1846. 71.81 of the statutes is created to read:
SB40-ASA1,1028,2 271.81 Disclosing reportable transactions. (1) Definitions. In this section:
SB40-ASA1,1028,83 (a) "Listed transaction" means any reportable transaction that is the same as,
4or substantially similar to, a transaction, plan, or arrangement specifically identified
5by the U.S. secretary of the treasury as a listed transaction, for purposes of section
66011 of the Internal Revenue Code and that is specifically identified by the U.S.
7secretary of the treasury as a listed transaction on or after the date the transaction
8occurred.
SB40-ASA1,1028,139 (b) "Material advisor" means any person who provides any material aid,
10assistance, or advice with respect to organizing, managing, promoting, selling,
11implementing, insuring, or carrying out any reportable transaction and who, directly
12or indirectly, derives gross income from providing such aid, assistance, or advice in
13an amount that exceeds the threshold amount.
SB40-ASA1,1028,1814 (c) "Reportable transaction" means any transaction, plan, or arrangement,
15including a listed transaction, for which a taxpayer is required to submit information
16to the department because the taxpayer is required to disclose the transaction, plan,
17or arrangement for federal income tax purposes for the taxable year in which the
18transaction occurred, as provided under U.S. department of treasury regulations.
SB40-ASA1,1028,2119 (d) "Tax shelter" means any entity, plan, or arrangement, if avoiding or evading
20federal income tax or Wisconsin income or franchise tax is a significant purpose of
21the entity, plan, or arrangement.
SB40-ASA1,1028,2222 (e) "Threshold amount" means the following:
SB40-ASA1,1028,2423 1. In the case of a reportable transaction, not including a listed transaction,
24from which the tax benefits are provided primarily to an individual, $50,000.
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