AB75: Bill Text

AB75,796,5 1. "Claimant" means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation.

AB75,796,6 2. "Financial institution" has the meaning given in s. 69.30 (1) (b).

AB75,796,9 3. "Long-term capital gain" means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code.

AB75,796,11 4. "Qualified new business venture" means a business certified by the department of commerce under s. 560.208.

AB75,796,14 (b) For taxable years beginning after December 31, 2010, a claimant may subtract from federal adjusted gross income any amount, up to $10,000,000, of a long-term capital gain if the claimant does all of the following:

AB75,796,15 1. Deposits the gain into a segregated account in a financial institution.

AB75,796,18 2. Within 180 days after the sale of the asset that generated the gain, invests all of the proceeds in the account described under subd. 1. in a qualified new business venture.

AB75,796,24 3. After making the investment as described under subd. 2., notifies the department, on a form prepared by the department, that the claimant will not declare on the claimant's income tax return the gain described under subd. 1. because the claimant has reinvested the capital gain as described under subd. 2. The form shall be sent to the department along with the claimant's income tax return for the year to which the claim relates.

AB75,797,3 (c) The basis of the investment described in par. (b) 2. shall be calculated by subtracting the gain described in par. (b) 1. from the amount of the investment described in par. (b) 2.

AB75,797,6 (d) If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain described under par. (b) 1. to net capital gains and losses, as described under sub. (10) (c).

AB75, s. 1545 Section 1545. 71.06 (1p) (d) of the statutes is amended to read:

AB75,797,9 71.06 (1p) (d) On all taxable income exceeding $112,500 but not exceeding $225,000, 6.75%.

AB75, s. 1546 Section 1546. 71.06 (1p) (e) of the statutes is created to read:

AB75,797,11 71.06 (1p) (e) On all taxable income exceeding $225,000, 7.75 percent.

AB75, s. 1547 Section 1547. 71.06 (2) (g) 4. of the statutes is amended to read:

AB75,797,14 71.06 (2) (g) 4. On all taxable income exceeding $150,000 but not exceeding $300,000, 6.75%.

AB75, s. 1548 Section 1548. 71.06 (2) (g) 5. of the statutes is created to read:

AB75,797,16 71.06 (2) (g) 5. On all taxable income exceeding $300,000, 7.75 percent.

AB75, s. 1549 Section 1549. 71.06 (2) (h) 4. of the statutes is amended to read:

AB75,797,19 71.06 (2) (h) 4. On all taxable income exceeding $75,000 but not exceeding $150,000, 6.75%.

AB75, s. 1550 Section 1550. 71.06 (2) (h) 5. of the statutes is created to read:

AB75,797,21 71.06 (2) (h) 5. On all taxable income exceeding $150,000, 7.75 percent.

AB75, s. 1551 Section 1551. 71.06 (2e) of the statutes is renumbered 71.06 (2e) (a) and amended to read:

AB75,798,21 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), and (2) (e), (f), (g) 1. to 3., and (h) 1. to 3., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor. Each amount that is revised under this subsection paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection paragraph and incorporate the changes into the income tax forms and instructions.

AB75, s. 1552 Section 1552. 71.06 (2e) (b) of the statutes is created to read:

AB75,799,11 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d) and (2) (g) 4. and (h) 4., and the dollar amount in the top bracket under subs. (1p) (e) and (2) (g) 5. and (h) 5., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB75, s. 1553 Section 1553. 71.07 (2dy) of the statutes is created to read:

AB75,799,15 71.07 (2dy) Economic development tax credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

AB75,799,19 (b) Filing claims. Subject to the limitations under this subsection and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of the tax, the amount authorized for the claimant under s. 560.703.

AB75,799,23 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

AB75,800,6 2. 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 authorization to claim tax benefits under s. 560.703. 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.

AB75,800,9 (d) Administration. 1. Except as provided in subd. 2., s. 71.28 (4) (e) and (f), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75,800,18 2. If a claimant's certification is revoked under s. 560.705, or if a claimant becomes ineligible for tax benefits under s. 560.702, the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.02 or 71.08 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

AB75,800,20 3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75, s. 1554 Section 1554. 71.07 (2fd) of the statutes is repealed.

AB75, s. 1555 Section 1555. 71.07 (3m) (a) 1. (intro.) of the statutes is amended to read:

AB75,800,25 71.07 (3m) (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, s. 1556 Section 1556. 71.07 (3m) (a) 3. of the statutes is amended to read:

AB75,801,11 71.07 (3m) (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, s. 1557 Section 1557. 71.07 (3m) (a) 4. of the statutes is amended to read:

AB75,801,18 71.07 (3m) (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, s. 1558 Section 1558. 71.07 (3m) (e) of the statutes is created to read:

AB75,801,21 71.07 (3m) (e) Sunset. No new claim may be filed under this subsection for a taxable year that begins after December 31, 2009.

AB75, s. 1559 Section 1559. 71.07 (3p) (a) 1m. of the statutes is created to read:

AB75,801,24 71.07 (3p) (a) 1m. "Dairy cooperative" means a business organized under ch. 185 or 193 for the purpose of obtaining or processing milk.

AB75, s. 1560 Section 1560. 71.07 (3p) (a) 3. (intro.) of the statutes is amended to read:

AB75,802,7 71.07 (3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for dairy manufacturing, including the following, if used exclusively for dairy manufacturing and if acquired and placed in service in this state during taxable years that begin after December 31, 2006, and before January 1, 2015, or, in the case of dairy cooperatives, if acquired and placed in service in this state during taxable years that begin after December 31, 2008, and before January 1, 2017:

AB75, s. 1561 Section 1561. 71.07 (3p) (b) of the statutes is amended to read:

AB75,802,15 71.07 (3p) (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.207, except as provided in par. (c) 5., for taxable years beginning after December 31, 2006, and before January 1, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.02 or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for dairy manufacturing modernization or expansion related to the claimant's dairy manufacturing operation.

AB75, s. 1562 Section 1562. 71.07 (3p) (c) 2m. b. of the statutes is amended to read:

AB75,802,20 71.07 (3p) (c) 2m. b. The maximum amount of the credits that may be claimed by all claimants, other than members of dairy cooperatives, under this subsection and ss. 71.28 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.207.

AB75, s. 1563 Section 1563. 71.07 (3p) (c) 2m. bm. of the statutes is created to read:

AB75,803,3 71.07 (3p) (c) 2m. bm. The maximum amount of the credits that may be claimed by members of dairy cooperatives under this subsection and ss. 71.28 (3p) and 71.47 (3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the maximum amount of the credits that may be claimed by members of dairy cooperatives under this subsection and ss. 71.28 (3p) and 71.47 (3p) in fiscal year 2010-11, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.207.

AB75, s. 1564 Section 1564. 71.07 (3p) (c) 3. of the statutes is amended to read:

AB75,803,17 71.07 (3p) (c) 3. Partnerships, limited liability companies, and tax-option corporations, and dairy cooperatives may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $200,000 for each of the entity's dairy manufacturing facilities. A partnership, limited liability company, or tax-option corporation, or dairy cooperative 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. Members of a dairy cooperative may claim the credit in proportion to the amount of milk that each member delivers to the dairy cooperative, as determined by the dairy cooperative.

AB75, s. 1565 Section 1565. 71.07 (3p) (c) 5. of the statutes is created to read:

AB75,803,22 71.07 (3p) (c) 5. A claimant who is a member of a dairy cooperative may claim the credit, based on amounts described under par. (b) that are paid by the dairy cooperative, for taxable years beginning after December 31, 2008, and before January 1, 2017.

AB75, s. 1566 Section 1566. 71.07 (3p) (c) 6. of the statutes is created to read:

AB75,804,3 71.07 (3p) (c) 6. No credit may be allowed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's credit certification and allocation under s. 560.207.

AB75, s. 1567 Section 1567. 71.07 (3p) (d) 2. of the statutes is amended to read:

AB75,804,10 71.07 (3p) (d) 2. If Except as provided in subd. 3., if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08 or no tax is due under s. 71.02 or 71.08, 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) (bn).

AB75, s. 1568 Section 1568. 71.07 (3p) (d) 3. of the statutes is created to read:

AB75,804,17 71.07 (3p) (d) 3. With regard to claims that are based on amounts described under par. (b) that are paid by a dairy cooperative, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, 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) (bp).

AB75, s. 1569 Section 1569. 71.07 (3q) of the statutes is created to read:

AB75,804,19 71.07 (3q) Jobs tax credit. (a) Definitions. In this subsection:

AB75,804,21 1. "Claimant" means a person certified to receive tax benefits under s. 560.2055 (2).

AB75,804,23 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).

AB75,805,3 (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. 71.02 any of the following.

AB75,805,6 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.

AB75,805,9 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).

AB75,805,17 (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.

AB75,805,20 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).

AB75,805,22 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75,806,2 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02, 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, s. 1570 Section 1570. 71.07 (3r) of the statutes is created to read:

AB75,806,5 71.07 (3r) Meat processing facility investment credit. (a) Definitions. In this subsection:

AB75,806,6 1. "Claimant" means a person who files a claim under this subsection.

AB75,806,8 2. "Meat processing" means processing livestock into meat products or processing meat products for sale commercially.

AB75,806,13 3. "Meat processing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for meat processing, including the following, if used exclusively for meat processing and if acquired and placed in service in this state during taxable years that begin after December 31, 2008, and before January 1, 2017:

AB75,806,15 a. Building construction, including livestock handling, product intake, storage, and warehouse facilities.

AB75,806,16 b. Building additions.

AB75,806,18 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing, and waste facilities.

AB75,806,19 d. Livestock intake and storage equipment.

AB75,806,22 e. Processing and manufacturing equipment, including cutting equipment, mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking equipment, pipes, motors, pumps, and valves.

AB75,806,24 f. Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying, and product movement equipment.

AB75,806,25 g. Warehouse equipment, including storage and curing racks.

AB75,807,3 h. Waste treatment and waste management equipment, including tanks, blowers, separators, dryers, digesters, and equipment that uses waste to produce energy, fuel, or industrial products.

AB75,807,7 i. Computer software and hardware used for managing the claimant's meat processing operation, including software and hardware related to logistics, inventory management, production plant controls, and temperature monitoring controls.

AB75,807,9 4. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.