LRB-3816/5
JK:jld:rs
2007 - 2008 LEGISLATURE
March 11, 2008 - Introduced by Representatives Shilling and Huebsch,
cosponsored by Senator Kapanke. Referred to Committee on Ways and Means.
AB957,1,4 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 (5r), 71.10 (4) (cr), 71.28 (5r), 71.30
3(3) (cr), 71.47 (5r) and 71.49 (1) (cr) of the statutes; relating to: an income and
4franchise tax credit for certain nonprofit community theaters.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for the property taxes paid
on property owned by a nonprofit entity and operated as a community theater, if the
property satisfies all of the following conditions:
1. It is used for the purposes for which the nonprofit entity is granted a federal
income tax exemption.
2. It is located on land donated by a local business owner.
3. It is located on land that is within 20 miles of the Mississippi River.
4. It is located on a parcel of land that is at least one-fourth of an acre, but no
larger than two acres.
5. It includes one or more theaters for the performing arts and the seating
capacity of the theater or theaters is not less than 450 persons.
6. It includes facilities that are used for arts education.

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:
AB957, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2007 Wisconsin Act
220
, is amended to read:
AB957,2,83 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e),
5(5f), (5h), (5i), (5j), and (5k), and (5r) and not passed through by a partnership, limited
6liability company, or tax-option corporation that has added that amount to the
7partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
871.34 (1) (g).
AB957, s. 2 9Section 2. 71.07 (5r) of the statutes is created to read:
AB957,2,1110 71.07 (5r) Nonprofit community theater credit. (a) Definition. In this
11subsection, "claimant" means a person who files a claim under this subsection.
AB957,2,1712 (b) Filing claims. Subject to the limitations provided in this subsection, a
13claimant may claim as a credit against the tax imposed under s. 71.02 up to the
14amount of the tax, the amount of property taxes imposed under ch. 70 that the
15claimant paid in the taxable year on all property owned or leased by a corporation,
16organization, or association that is exempt from taxation under section 501 (c) (3) of
17the Internal Revenue Code, if the property satisfies the following conditions:
AB957,2,20181. It is used for the purposes for which the exemption under section 501 (c) (3)
19of the Internal Revenue Code is granted to the corporation, organization, or
20association that owns or leases the property.
AB957,2,2121 2. It is located on land donated by a local business owner.
AB957,3,1
13. It is located on land that is within 20 miles of the Mississippi River.
AB957,3,32 4. It is located on a parcel of land that is at least one-fourth of an acre, but no
3larger than 2 acres.
AB957,3,64 5. It includes one or more theaters for the performing arts that are operated by
5the corporation, organization, or association and the seating capacity of the theater
6or theaters is not less than 450 persons.
AB957,3,77 6. It includes facilities that are used for arts education.
AB957,3,158 (c) Limitations. Partnerships, limited liability companies, and tax-option
9corporations may not claim the credit under this subsection, but the eligibility for,
10and the amount of, the credit are based on their payment of amounts under par. (b).
11A partnership, limited liability company, or tax-option corporation shall compute
12the amount of credit that each of its partners, members, or shareholders may claim
13and shall provide that information to each of them. Partners, members of limited
14liability companies, and shareholders of tax-option corporations may claim the
15credit in proportion to their ownership interests.
AB957,3,1716 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
17s. 71.28 (4), applies to the credit under this subsection.
AB957, s. 3 18Section 3. 71.10 (4) (cr) of the statutes is created to read:
AB957,3,1919 71.10 (4) (cr) Nonprofit community theater credit under s. 71.07 (5r).
AB957, s. 4 20Section 4. 71.21 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is
21amended to read:
AB957,3,2522 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
23(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5g),
24(5h), (5i), (5j), and (5k), and (5r) and passed through to partners shall be added to the
25partnership's income.
AB957, s. 5
1Section 5. 71.26 (2) (a) of the statutes, as affected by 2007 Wisconsin Act 20,
2is amended to read:
AB957,4,203 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
4the gross income as computed under the Internal Revenue Code as modified under
5sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
6computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
77., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
8under this paragraph at the time that the taxpayer first claimed the credit plus the
9amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
10(1ds), (1dx), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and
11(5r)
and not passed through by a partnership, limited liability company, or
12tax-option corporation that has added that amount to the partnership's, limited
13liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
14(g) plus the amount of losses from the sale or other disposition of assets the gain from
15which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
16sold or otherwise disposed of at a gain and minus deductions, as computed under the
17Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
18amount equal to the difference between the federal basis and Wisconsin basis of any
19asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
20during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB957, s. 6 21Section 6. 71.28 (5r) of the statutes is created to read:
AB957,4,2322 71.28 (5r) Nonprofit community theater credit. (a) Definition. In this
23subsection, "claimant" means a person who files a claim under this subsection.
AB957,5,424 (b) Filing claims. Subject to the limitations provided in this subsection, a
25claimant may claim as a credit against the tax imposed under s. 71.23 up to the

1amount of the tax, the amount of property taxes imposed under ch. 70 that the
2claimant paid in the taxable year on all property owned or leased by a corporation,
3organization, or association that is exempt from taxation under section 501 (c) (3) of
4the Internal Revenue Code, if the property satisfies the following conditions:
AB957,5,751. It is used for the purposes for which the exemption under section 501 (c) (3)
6of the Internal Revenue Code is granted to the corporation, organization, or
7association that owns or leases the property.
AB957,5,88 2. It is located on land donated by a local business owner.
AB957,5,99 3. It is located on land that is within 20 miles of the Mississippi River.
AB957,5,1110 4. It is located on a parcel of land that is at least one-fourth of an acre, but no
11larger than 2 acres.
AB957,5,1412 5. It includes one or more theaters for the performing arts that are operated by
13the corporation, organization, or association and the seating capacity of the theater
14or theaters is not less than 450 persons.
AB957,5,1515 6. It includes facilities that are used for arts education.
AB957,5,2316 (c) Limitations. Partnerships, limited liability companies, and tax-option
17corporations may not claim the credit under this subsection, but the eligibility for,
18and the amount of, the credit are based on their payment of amounts under par. (b).
19A partnership, limited liability company, or tax-option corporation shall compute
20the amount of credit that each of its partners, members, or shareholders may claim
21and shall provide that information to each of them. Partners, members of limited
22liability companies, and shareholders of tax-option corporations may claim the
23credit in proportion to their ownership interests.
AB957,5,2524 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
25sub. (4), applies to the credit under this subsection.
AB957, s. 7
1Section 7. 71.30 (3) (cr) of the statutes is created to read:
AB957,6,22 71.30 (3) (cr) Nonprofit community theater credit under s. 71.28 (5r).
AB957, s. 8 3Section 8. 71.34 (1) (g) of the statutes, as affected by 2007 Wisconsin Act 20,
4is amended to read:
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