LRB-1526/2
JK:jld:md
2009 - 2010 LEGISLATURE
February 12, 2009 - Introduced by Representatives Vruwink, Danou, Ripp,
Steinbrink, A. Ott, Jorgensen, Radcliffe, Hilgenberg, Brooks, Molepske
Jr., Ballweg and
Garthwaite, cosponsored by Senators Erpenbach, Harsdorf
and Kreitlow. Referred to Committee on Agriculture.
AB37,1,10
1An Act to amend 20.835 (2) (bn), 71.07 (3p) (a) 3. (intro.), 71.07 (3p) (b), 71.07
2(3p) (c) 2m. b., 71.07 (3p) (c) 3., 71.07 (3p) (d) 2., 71.28 (3p) (a) 3. (intro.), 71.28
3(3p) (b), 71.28 (3p) (c) 2m. b., 71.28 (3p) (c) 3., 71.28 (3p) (d) 2., 71.47 (3p) (a) 3.
4(intro.), 71.47 (3p) (b), 71.47 (3p) (c) 2m. b., 71.47 (3p) (c) 3., 71.47 (3p) (d) 2. and
5560.207 (2); and
to create 20.835 (2) (bp), 71.07 (3p) (a) 1m., 71.07 (3p) (c) 2m.
6bm., 71.07 (3p) (c) 5., 71.07 (3p) (c) 6., 71.07 (3p) (d) 3., 71.28 (3p) (a) 1m., 71.28
7(3p) (c) 2m. bm., 71.28 (3p) (c) 5., 71.28 (3p) (c) 6., 71.28 (3p) (d) 3., 71.47 (3p)
8(a) 1m., 71.47 (3p) (c) 2m. bm., 71.47 (3p) (c) 5., 71.47 (3p) (c) 6. and 71.47 (3p)
9(d) 3. of the statutes;
relating to: allowing dairy cooperatives to claim the dairy
10manufacturing facility investment credit and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, a person may claim a credit against the person's income or
franchise tax liability that is equal to 10 percent of the amount that the person paid
in the taxable year for dairy manufacturing modernization or expansion related to
the claimant's dairy manufacturing operation. If the amount of the credit exceeds
the amount of the person's tax liability, the person receives a refund. Under current
law, dairy cooperatives are, generally, not subject to state income or franchise taxes
and, therefore, are not eligible to claim the credit for dairy manufacturing
modernization or expansion.
This bill allows the members of a dairy cooperative to claim the credit for the
dairy manufacturing modernization or expansion expenses paid by the cooperative.
The dairy cooperative determines the amount of the credit that each member may
claim, based on the amount of milk each member delivers to the cooperative.
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:
AB37, s. 1
1Section
1. 20.835 (2) (bn) of the statutes is amended to read:
AB37,2,42
20.835
(2) (bn)
Dairy manufacturing facility investment credit. The amounts
3in the schedule to make the payments under ss. 71.07 (3p)
(d) 2., 71.28 (3p)
(d) 2., and
471.47 (3p)
(d) 2.
AB37, s. 2
5Section
2. 20.835 (2) (bp) of the statutes is created to read:
AB37,2,86
20.835
(2) (bp)
Dairy manufacturing facility investment credit; dairy
7cooperatives. A sum sufficient to make the payments under ss. 71.07 (3p) (d) 3., 71.28
8(3p) (d) 3., and 71.47 (3p) (d) 3.
AB37, s. 3
9Section
3. 71.07 (3p) (a) 1m. of the statutes is created to read:
AB37,2,1110
71.07
(3p) (a) 1m. "Dairy cooperative" means a business organized under ch.
11185 or 193 for the purpose of obtaining or processing milk.
AB37, s. 4
12Section
4. 71.07 (3p) (a) 3. (intro.) of the statutes is amended to read:
AB37,3,213
71.07
(3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion"
14means constructing, improving, or acquiring buildings or facilities, or acquiring
15equipment, for dairy manufacturing, including the following, if used exclusively for
16dairy manufacturing and if acquired and placed in service in this state during
17taxable years that begin after December 31, 2006, and before January 1, 2015
, or, in
1the case of dairy cooperatives, if acquired and placed in service in this state during
2taxable years that begin after December 31, 2008, and before January 1, 2017:
AB37, s. 5
3Section
5. 71.07 (3p) (b) of the statutes is amended to read:
AB37,3,104
71.07
(3p) (b)
Filing claims. Subject to the limitations provided in this
5subsection and s. 560.207,
except as provided in par. (c) 5., for taxable years
6beginning after December 31, 2006, and before January 1, 2015, a claimant may
7claim as a credit against the taxes imposed under s. 71.02 or 71.08, up to the amount
8of the tax, an amount equal to 10 percent of the amount the claimant paid in the
9taxable year for dairy manufacturing modernization or expansion related to the
10claimant's dairy manufacturing operation.
AB37, s. 6
11Section
6. 71.07 (3p) (c) 2m. b. of the statutes is amended to read:
AB37,3,1512
71.07
(3p) (c) 2m. b. The maximum amount of the credits that may be claimed
13by all claimants, other than members of dairy cooperatives, under this subsection
14and ss. 71.28 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year
15thereafter, is $700,000, as allocated under s. 560.207.
AB37, s. 7
16Section
7. 71.07 (3p) (c) 2m. bm. of the statutes is created to read:
AB37,3,2317
71.07
(3p) (c) 2m. bm. The maximum amount of the credits that may be claimed
18by members of dairy cooperatives under this subsection and ss. 71.28 (3p) and 71.47
19(3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the
20maximum amount of the credits that may be claimed by members of dairy
21cooperatives under this subsection and ss. 71.28 (3p) and 71.47 (3p) in fiscal year
222010-11, and in each fiscal year thereafter, is $700,000, as allocated under s.
23560.207.
AB37, s. 8
24Section
8. 71.07 (3p) (c) 3. of the statutes is amended to read:
AB37,4,13
171.07
(3p) (c) 3. Partnerships, limited liability companies,
and tax-option
2corporations
, and dairy cooperatives may not claim the credit under this subsection,
3but the eligibility for, and the amount of, the credit are based on their payment of
4expenses under par. (b), except that the aggregate amount of credits that the entity
5may compute shall not exceed $200,000
for each of the entity's dairy manufacturing
6facilities. A partnership, limited liability company,
or tax-option corporation
, or
7dairy cooperative shall compute the amount of credit that each of its partners,
8members, or shareholders may claim and shall provide that information to each of
9them. Partners, members of limited liability companies, and shareholders of
10tax-option corporations may claim the credit in proportion to their ownership
11interest.
Members of a dairy cooperative may claim the credit in proportion to the
12amount of milk that each member delivers to the dairy cooperative, as determined
13by the dairy cooperative.
AB37, s. 9
14Section
9. 71.07 (3p) (c) 5. of the statutes is created to read:
AB37,4,1815
71.07
(3p) (c) 5. A claimant who is a member of a dairy cooperative may claim
16the credit, based on amounts described under par. (b) that are paid by the dairy
17cooperative, for taxable years beginning after December 31, 2008, and before
18January 1, 2017.
AB37, s. 10
19Section
10. 71.07 (3p) (c) 6. of the statutes is created to read:
AB37,4,2220
71.07
(3p) (c) 6. No credit may be allowed under this subsection unless the
21claimant submits with the claimant's return a copy of the claimant's credit
22certification and allocation under s. 560.207.
AB37, s. 11
23Section
11. 71.07 (3p) (d) 2. of the statutes is amended to read:
AB37,5,424
71.07
(3p) (d) 2.
If Except as provided in subd. 3., if the allowable amount of
25the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08
or no
1tax is due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax
2due shall be certified by the department of revenue to the department of
3administration for payment by check, share draft, or other draft drawn from the
4appropriation account under s. 20.835 (2) (bn).
AB37, s. 12
5Section
12. 71.07 (3p) (d) 3. of the statutes is created to read:
AB37,5,116
71.07
(3p) (d) 3. With regard to claims that are based on amounts described
7under par. (b) that are paid by a dairy cooperative, if the allowable amount of the
8claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the
9amount of the claim not used to offset the tax due shall be certified by the department
10of revenue to the department of administration for payment by check, share draft,
11or other draft drawn from the appropriation account under s. 20.835 (2) (bp).
AB37, s. 13
12Section
13. 71.28 (3p) (a) 1m. of the statutes is created to read:
AB37,5,1413
71.28
(3p) (a) 1m. "Dairy cooperative" means a business organized under ch.
14185 or 193 for the purpose of obtaining or processing milk.
AB37, s. 14
15Section
14. 71.28 (3p) (a) 3. (intro.) of the statutes is amended to read:
AB37,5,2216
71.28
(3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion"
17means constructing, improving, or acquiring buildings or facilities, or acquiring
18equipment, for dairy manufacturing, including the following, if used exclusively for
19dairy manufacturing and if acquired and placed in service in this state during
20taxable years that begin after December 31, 2006, and before January 1, 2015
, or, in
21the case of dairy cooperatives, if acquired and placed in service in this state during
22taxable years that begin after December 31, 2008, and before January 1, 2017:
AB37, s. 15
23Section
15. 71.28 (3p) (b) of the statutes is amended to read:
AB37,6,524
71.28
(3p) (b)
Filing claims. Subject to the limitations provided in this
25subsection and s. 560.207,
except as provided in par. (c) 5., for taxable years
1beginning after December 31, 2006, and before January 1, 2015, a claimant may
2claim as a credit against the taxes imposed under s. 71.23, up to the amount of the
3tax, an amount equal to 10 percent of the amount the claimant paid in the taxable
4year for dairy manufacturing modernization or expansion related to the claimant's
5dairy manufacturing operation.
AB37, s. 16
6Section
16. 71.28 (3p) (c) 2m. b. of the statutes is amended to read:
AB37,6,107
71.28
(3p) (c) 2m. b. The maximum amount of the credits that may be claimed
8by all claimants, other than members of dairy cooperatives, under this subsection
9and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year
10thereafter, is $700,000, as allocated under s. 560.207.
AB37, s. 17
11Section
17. 71.28 (3p) (c) 2m. bm. of the statutes is created to read:
AB37,6,1812
71.28
(3p) (c) 2m. bm. The maximum amount of the credits that may be claimed
13by members of dairy cooperatives under this subsection and ss. 71.07 (3p) and 71.47
14(3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the
15maximum amount of the credits that may be claimed by members of dairy
16cooperatives under this subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year
172010-11, and in each fiscal year thereafter, is $700,000, as allocated under s.
18560.207.
AB37, s. 18
19Section
18. 71.28 (3p) (c) 3. of the statutes is amended to read:
AB37,7,720
71.28
(3p) (c) 3. Partnerships, limited liability companies,
and tax-option
21corporations
, and dairy cooperatives may not claim the credit under this subsection,
22but the eligibility for, and the amount of, the credit are based on their payment of
23expenses under par. (b), except that the aggregate amount of credits that the entity
24may compute shall not exceed $200,000
for each of the entity's dairy manufacturing
25facilities. A partnership, limited liability company,
or tax-option corporation
, or
1dairy cooperative shall compute the amount of credit that each of its partners,
2members, or shareholders may claim and shall provide that information to each of
3them. Partners, members of limited liability companies, and shareholders of
4tax-option corporations may claim the credit in proportion to their ownership
5interest.
Members of a dairy cooperative may claim the credit in proportion to the
6amount of milk that each member delivers to the dairy cooperative, as determined
7by the dairy cooperative.
AB37, s. 19
8Section
19. 71.28 (3p) (c) 5. of the statutes is created to read:
AB37,7,129
71.28
(3p) (c) 5. A claimant who is a member of a dairy cooperative may claim
10the credit, based on amounts described under par. (b) that are paid by the dairy
11cooperative, for taxable years beginning after December 31, 2008, and before
12January 1, 2017.
AB37, s. 20
13Section
20. 71.28 (3p) (c) 6. of the statutes is created to read:
AB37,7,1614
71.28
(3p) (c) 6. No credit may be allowed under this subsection unless the
15claimant submits with the claimant's return a copy of the claimant's credit
16certification and allocation under s. 560.207.
AB37, s. 21
17Section
21. 71.28 (3p) (d) 2. of the statutes is amended to read:
AB37,7,2318
71.28
(3p) (d) 2.
If Except as provided in subd. 3., if the allowable amount of
19the claim under par. (b) exceeds the tax otherwise due under s. 71.23
or no tax is due
20under s. 71.23, the amount of the claim not used to offset the tax due shall be certified
21by the department of revenue to the department of administration for payment by
22check, share draft, or other draft drawn from the appropriation account under s.
2320.835 (2) (bn).
AB37, s. 22
24Section
22. 71.28 (3p) (d) 3. of the statutes is created to read:
AB37,8,6
171.28
(3p) (d) 3. With regard to claims that are based on amounts described
2under par. (b) that are paid by a dairy cooperative, if the allowable amount of the
3claim under par. (b) exceeds the tax otherwise due under s. 71.23, the amount of the
4claim not used to offset the tax due shall be certified by the department of revenue
5to the department of administration for payment by check, share draft, or other draft
6drawn from the appropriation account under s. 20.835 (2) (bp).
AB37, s. 23
7Section
23. 71.47 (3p) (a) 1m. of the statutes is created to read:
AB37,8,98
71.47
(3p) (a) 1m. "Dairy cooperative" means a business organized under ch.
9185 or 193 for the purpose of obtaining or processing milk.
AB37, s. 24
10Section
24. 71.47 (3p) (a) 3. (intro.) of the statutes is amended to read:
AB37,8,1711
71.47
(3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion"
12means constructing, improving, or acquiring buildings or facilities, or acquiring
13equipment, for dairy manufacturing, including the following, if used exclusively for
14dairy manufacturing and if acquired and placed in service in this state during
15taxable years that begin after December 31, 2006, and before January 1, 2015
, or, in
16the case of dairy cooperatives, if acquired and placed in service in this state during
17taxable years that begin after December 31, 2008, and before January 1, 2017:
AB37, s. 25
18Section
25. 71.47 (3p) (b) of the statutes is amended to read:
AB37,8,2519
71.47
(3p) (b)
Filing claims. Subject to the limitations provided in this
20subsection and s. 560.207,
except as provided in par. (c) 5., for taxable years
21beginning after December 31, 2006, and before January 1, 2015, a claimant may
22claim as a credit against the taxes imposed under s. 71.43, up to the amount of the
23tax, an amount equal to 10 percent of the amount the claimant paid in the taxable
24year for dairy manufacturing modernization or expansion related to the claimant's
25dairy manufacturing operation.
AB37, s. 26
1Section
26. 71.47 (3p) (c) 2m. b. of the statutes is amended to read:
AB37,9,52
71.47
(3p) (c) 2m. b. The maximum amount of the credits that may be claimed
3by all claimants, other than members of dairy cooperatives, under this subsection
4and ss. 71.07 (3p) and 71.28 (3p) in fiscal year 2008-09, and in each fiscal year
5thereafter, is $700,000, as allocated under s. 560.207.
AB37, s. 27
6Section
27. 71.47 (3p) (c) 2m. bm. of the statutes is created to read:
AB37,9,137
71.47
(3p) (c) 2m. bm. The maximum amount of the credits that may be claimed
8by members of dairy cooperatives under this subsection and ss. 71.07 (3p) and 71.28
9(3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the
10maximum amount of the credits that may be claimed by members of dairy
11cooperatives under this subsection and ss. 71.07 (3p) and 71.28 (3p) in fiscal year
122010-11, and in each fiscal year thereafter, is $700,000, as allocated under s.
13560.207.
AB37, s. 28
14Section
28. 71.47 (3p) (c) 3. of the statutes is amended to read:
AB37,9,2515
71.47
(3p) (c) 3. Partnerships, limited liability companies,
and tax-option
16corporations
, and dairy cooperatives may not claim the credit under this subsection,
17but the eligibility for, and the amount of, the credit are based on their payment of
18expenses under par. (b), except that the aggregate amount of credits that the entity
19may compute shall not exceed $200,000
for each of the entity's dairy manufacturing
20facilities. A partnership, limited liability company,
or tax-option corporation
, or
21dairy cooperative shall compute the amount of credit that each of its partners,
22members, or shareholders may claim and shall provide that information to each of
23them. Partners, members of limited liability companies, and shareholders of
24tax-option corporations may claim the credit in proportion to their ownership
25interest.
Members of a dairy cooperative may claim the credit in proportion to the
1amount of milk that each member delivers to the dairy cooperative, as determined
2by the dairy cooperative.
AB37, s. 29
3Section
29. 71.47 (3p) (c) 5. of the statutes is created to read: