Amendment SSA1-AB75

AB75-SSA1, s. 1635 Section 1635. 71.26 (3) (n) of the statutes is amended to read:

AB75-SSA1,885,9 71.26 (3) (n) Sections 381, 382 and 383 (relating to carry-overs in certain corporate acquisitions) are modified so that they apply to losses under sub. (4) and credits under s. 71.28 (1di), (1dL), (1dm), (1dx), (3), (4), (4m), and (5) instead of to federal credits and federal net operating losses.

AB75-SSA1, s. 1636 Section 1636. 71.27 (7) (b) of the statutes is created to read:

AB75-SSA1,885,15 71.27 (7) (b) For taxable years beginning after December 31, 2008, for persons who qualify for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action, income or franchise taxes payable upon the filing of the tax return are not subject to interest as otherwise provided under par. (a).

AB75-SSA1, s. 1638 Section 1638. 71.28 (1fd) of the statutes is repealed.

AB75-SSA1, s. 1639 Section 1639. 71.28 (2m) (a) 1. (intro.) of the statutes is amended to read:

AB75-SSA1,885,20 71.28 (2m) (a) 1. (intro.) "Claimant" means an owner of farmland, as defined in s. 91.01 (9), 2007 stats., of farmland domiciled in this state during the entire year for which a credit under this subsection is claimed, except as follows:

AB75-SSA1, s. 1640 Section 1640. 71.28 (2m) (a) 3. of the statutes is amended to read:

AB75-SSA1,886,6 71.28 (2m) (a) 3. "Farmland" means 35 or more acres of real property, exclusive of improvements, in this state, in agricultural use, as defined in s. 91.01 (1), 2007 stats., and owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subsection is claimed if the farm of which the farmland is a part, during that year, produced not less than $6,000 in gross farm profits resulting from agricultural use, as defined in s. 91.01 (1), 2007 stats., or if the farm of which the farmland is a part, during that year and the 2 years immediately preceding that year, produced not less than $18,000 in such profits, or if at least 35 acres of the farmland, during all or part of that year, was enrolled in the conservation reserve program under 16 USC 3831 to 3836.

AB75-SSA1, s. 1641 Section 1641. 71.28 (2m) (a) 4. of the statutes is amended to read:

AB75-SSA1,886,13 71.28 (2m) (a) 4. "Gross farm profits" means gross receipts, excluding rent, from agricultural use, as defined in s. 91.01 (1), 2007 stats., including the fair market value at the time of disposition of payments in kind for placing land in federal programs or payments from the federal dairy termination program under 7 USC 1446 (d), less the cost or other basis of livestock or other items purchased for resale which are sold or otherwise disposed of during the taxable year.

AB75-SSA1, s. 1642 Section 1642. 71.28 (2m) (e) of the statutes is created to read:

AB75-SSA1,886,16 71.28 (2m) (e) Sunset. No new claim may be filed under this subsection for a taxable year that begins after December 31, 2009.

AB75-SSA1, s. 1643 Section 1643. 71.28 (3) (a) 1. of the statutes is amended to read:

AB75-SSA1,886,19 71.28 (3) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.

AB75-SSA1, s. 1654 Section 1654. 71.28 (3q) of the statutes is created to read:

AB75-SSA1,886,21 71.28 (3q) Jobs tax credit. (a) Definitions. In this subsection:

AB75-SSA1,886,23 1. "Claimant" means a person certified to receive tax benefits under s. 560.2055 (2).

AB75-SSA1,886,25 2. "Eligible employee" means an eligible employee under s. 560.2055 (1) (b) who satisfies the wage requirements under s. 560.2055 (3) (a) or (b).

AB75-SSA1,887,3 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.2055, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the taxes imposed under s. 71.23 any of the following:

AB75-SSA1,887,6 1. The amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined by the department of commerce under s. 560.2055.

AB75-SSA1,887,9 2. The amount of the costs incurred by the claimant in the taxable year, as determined under s. 560.2055, to undertake the training activities described under s. 560.2055 (3) (c).

AB75-SSA1,887,17 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB75-SSA1,887,20 2. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.2055 (2).

AB75-SSA1,887,22 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB75-SSA1,888,2 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bb).

AB75-SSA1, s. 1656 Section 1656. 71.28 (4m) of the statutes is created to read:

AB75-SSA1,888,9 71.28 (4m) Super research and development credit. (a) Definition. In this subsection, "qualified research expenses" means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant for research conducted in this state for the taxable year and except that "qualified research expenses" do not include compensation used in computing the credits under subs. (1dj) and (1dx).

AB75-SSA1,888,14 (b) Credit. Subject to the limitations provided under this subsection, for taxable years beginning on or after January 1, 2011, a corporation may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to the amount of qualified research expenses paid or incurred by the corporation in the taxable year that exceeds the amount calculated as follows:

AB75-SSA1,888,17 1. Determine the average amount of the qualified research expenses paid or incurred by the corporation in the 3 taxable years immediately preceding the taxable year for which a credit is claimed under this subsection.

AB75-SSA1,888,18 2. Multiply the amount determined under subd. 1. by 1.25.

AB75-SSA1,888,20 (c) Limitations. Subsection (4) (b) to (d) and (i), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB75-SSA1,888,22 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB75-SSA1,889,3 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB75-SSA1, s. 1659 Section 1659. 71.28 (5b) (d) 3. of the statutes is created to read:

AB75-SSA1,889,9 71.28 (5b) (d) 3. For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB75-SSA1, s. 1659y Section 1659y. 71.28 (5f) of the statutes is repealed and recreated to read:

AB75-SSA1,889,11 71.28 (5f) Film production services credit. (a) Definitions. In this subsection:

AB75-SSA1,889,22 1. "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for a production that is less than 30 minutes. "Accredited production" also means an electronic game, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. "Accredited production" does not include any of the following, regardless of the production costs:

AB75-SSA1,889,24 a. News, current events, or public programming or a program that includes weather or market reports.

AB75-SSA1,889,25 b. A talk show.

AB75-SSA1,889,26 c. A production with respect to a questionnaire or contest.

AB75-SSA1,890,2 d. A sports event or sports activity.

AB75-SSA1,890,3 e. A gala presentation or awards show.

AB75-SSA1,890,4 f. A finished production that solicits funds.

AB75-SSA1,890,7 g. A production for which the production company is required under 18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.

AB75-SSA1,890,9 h. A production produced primarily for industrial, corporate, or institutional purposes.

AB75-SSA1,890,10 2. "Claimant" means a person who files a claim under this subsection.

AB75-SSA1,890,19 3. "Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce. "Production expenditures" do not include salary, wages, or labor-related contract payments.

AB75-SSA1,890,22 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.23 any of the following amounts:

AB75-SSA1,891,7 1. An amount equal to 25 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000. A claimant may claim an additional amount equal to 3 percent of any salary, wages, or contract payments described in this subdivision if the individual who received the salary, wages, or contract payments was also living in an economically distressed area of this state, as determined by the department of commerce under s. 560.706 (2) (e), at the time that the individual was paid.

AB75-SSA1,891,14 2. An amount equal to 20 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals who were not residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000 or paid as above-the-line expenses to individuals such as nontechnical crew members, producers, writers, casting directors, and actors.

AB75-SSA1,891,16 3. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.

AB75-SSA1,891,19 (c) Limitations. 1. A claimant may not claim a credit under this subsection if less than 35 percent of the total budget for the accredited production is spent in this state.

AB75-SSA1,891,23 2. The total amount of the credits that a claimant may claim under par. (b) 2. in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages, or labor-related contract payments paid to each individual described in par. (b) 2. in the taxable year.

AB75-SSA1,892,3 3. No credit may be claimed under par. (b) 3. for the purchase of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) the sale of which is not sourced to this state, as provided under s. 77.522.

AB75-SSA1,892,5 4. The maximum amount of all credits that a claimant may claim under this subsection for each accredited production is $10,000,000.

AB75-SSA1,892,10 5. The maximum amount of the credits that may be claimed under this subsection and sub. (5h) and ss. 71.07 (5f) and (5h) and 71.47 (5f) and (5h) in fiscal year 2009-10 is $1,500,000. The maximum amount of the credits that may be claimed under this subsection and sub. (5h) and ss. 71.07 (5f) and (5h) and 71.47 (5f) and (5h) in fiscal year 2010-11 is $1,500,000.

AB75-SSA1,892,17 6. No credit may be allowed under this subsection unless the claimant files an application with the department of commerce, at the time and in the manner prescribed by the department of commerce, and the department of commerce approves the application. The claimant shall submit a fee with the application in an amount equal to 2 percent of the claimant's budgeted production expenditures or to $5,000, whichever is less. The claimant shall submit a copy of the approved application with the claimant's return.

AB75-SSA1,892,25 7. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB75-SSA1,893,2 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credits under this subsection.

AB75-SSA1,893,7 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bm).

AB75-SSA1, s. 1660bd Section 1660bd. 71.28 (5h) (a) 2. of the statutes is amended to read:

AB75-SSA1,893,12 71.28 (5h) (a) 2. "Film production company" means an entity that exclusively creates films, videos, electronic games, broadcast advertisement, or television productions, not including the productions described under s. 71.28 accredited productions, as defined in sub. (5f) (a) 1. a. to h.

AB75-SSA1, s. 1660bg Section 1660bg. 71.28 (5h) (b) (intro.) of the statutes is amended to read:

AB75-SSA1,893,20 71.28 (5h) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007 2008, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the taxes, for the first 3 taxable years that the claimant is doing business in this state as a film production company, an amount that is equal to 15 percent of the following that the claimant paid in the taxable year to establish or operate a film production company in this state:

AB75-SSA1, s. 1660c Section 1660c. 71.28 (5h) (b) 1. of the statutes is amended to read:

AB75-SSA1,893,25 71.28 (5h) (b) 1. The purchase price of depreciable, tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), if the sale of the tangible personal property, items, property, or goods is sourced to this state under s. 77.522.

AB75-SSA1, s. 1660d Section 1660d. 71.28 (5h) (c) 1. of the statutes is amended to read:

AB75-SSA1,894,6 71.28 (5h) (c) 1. A claimant may claim the credit under par. (b) 1., if the tangible personal property, or item, property, or good under s. 77.52 (1) (b), (c), or (d), is purchased after December 31, 2007 2008, and the tangible personal property, item, property, or good is used for at least 50 percent of its use in the claimant's business as a film production company.

AB75-SSA1, s. 1660e Section 1660e. 71.28 (5h) (c) 2. of the statutes is amended to read:

AB75-SSA1,894,13 71.28 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2007 2008, and the completed project is placed in service after December 31, 2007 2008.

AB75-SSA1, s. 1660f Section 1660f. 71.28 (5h) (c) 3. of the statutes is amended to read:

AB75-SSA1,894,18 71.28 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2007 2008, and the completed project is placed in service after December 31, 2007 2008.

AB75-SSA1, s. 1660g Section 1660g. 71.28 (5h) (c) 4. of the statutes is amended to read:

AB75-SSA1,894,24 71.28 (5h) (c) 4. No claim may be allowed under this subsection unless the department of commerce certifies, in writing, that the credits claimed under this subsection are for expenses related to establishing or operating a film production company in this state and the claimant submits a copy of the certification with the claimant's return.

AB75-SSA1, s. 1660h Section 1660h. 71.28 (5h) (c) 4d. of the statutes is created to read:

AB75-SSA1,895,3 71.28 (5h) (c) 4d. The maximum amount of all credits that a claimant may claim under this subsection for each project for which expenses are certified under subd. 4. is $10,000,000.

AB75-SSA1, s. 1660i Section 1660i. 71.28 (5h) (c) 4m. of the statutes is created to read:

AB75-SSA1,895,9 71.28 (5h) (c) 4m. The maximum amount of the credits that may be claimed under this subsection and sub. (5f) and ss. 71.07 (5f) and (5h) and 71.47 (5f) and (5h) in fiscal year 2009-10 is $1,500,000. The maximum amount of the credits that may be claimed under this subsection and sub. (5f) and ss. 71.07 (5f) and (5h) and 71.47 (5f) and (5h) in fiscal year 2010-11 is $1,500,000.

AB75-SSA1, s. 1660j Section 1660j. 71.28 (5h) (d) of the statutes is renumbered 71.28 (5h) (d) 1. and amended to read:

AB75-SSA1,895,13 71.28 (5h) (d) 1. Subsection (4) (e) to , (g), and (h), as it applies to the credit under sub. (4), applies to the credits under this subsection.

AB75-SSA1, s. 1660k Section 1660k. 71.28 (5h) (d) 2. of the statutes is created to read:

AB75-SSA1,895,19 71.28 (5h) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bL).

AB75-SSA1, s. 1662 Section 1662. 71.28 (5i) (b) of the statutes is amended to read:

AB75-SSA1,896,2 71.28 (5i) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009 2011, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1) (a) to (p).

AB75-SSA1, s. 1662d Section 1662d. 71.28 (5k) (b) of the statutes is amended to read:

AB75-SSA1,896,9 71.28 (5k) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after July 1, 2009 2011, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to 5 percent of the amount the claimant paid in the taxable year to a community rehabilitation program to perform work for the claimant's business, pursuant to a contract.

AB75-SSA1, s. 1663 Section 1663 . 71.28 (6) (c) of the statutes is amended to read: