AB75: Bill Text

AB75,926,17 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, s. 1642 Section 1642. 71.28 (2m) (e) of the statutes is created to read:

AB75,926,20 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, s. 1643 Section 1643. 71.28 (3) (a) 1. of the statutes is amended to read:

AB75,926,23 71.28 (3) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.

AB75, s. 1644 Section 1644. 71.28 (3p) (a) 1m. of the statutes is created to read:

AB75,927,2 71.28 (3p) (a) 1m. "Dairy cooperative" means a business organized under ch. 185 or 193 for the purpose of obtaining or processing milk.

AB75, s. 1645 Section 1645. 71.28 (3p) (a) 3. (intro.) of the statutes is amended to read:

AB75,927,10 71.28 (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. 1646 Section 1646. 71.28 (3p) (b) of the statutes is amended to read:

AB75,927,18 71.28 (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. 71.23, 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. 1647 Section 1647. 71.28 (3p) (c) 2m. b. of the statutes is amended to read:

AB75,927,23 71.28 (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. 71.07 (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. 1648 Section 1648. 71.28 (3p) (c) 2m. bm. of the statutes is created to read:

AB75,928,7 71.28 (3p) (c) 2m. bm. The maximum amount of the credits that may be claimed by members of dairy cooperatives under this subsection and ss. 71.07 (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. 71.07 (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. 1649 Section 1649. 71.28 (3p) (c) 3. of the statutes is amended to read:

AB75,928,21 71.28 (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. 1650 Section 1650. 71.28 (3p) (c) 5. of the statutes is created to read:

AB75,929,2 71.28 (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. 1651 Section 1651. 71.28 (3p) (c) 6. of the statutes is created to read:

AB75,929,6 71.28 (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. 1652 Section 1652. 71.28 (3p) (d) 2. of the statutes is amended to read:

AB75,929,13 71.28 (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. 71.23 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) (bn).

AB75, s. 1653 Section 1653. 71.28 (3p) (d) 3. of the statutes is created to read:

AB75,929,20 71.28 (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. 71.23, 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) (bp).

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

AB75,929,22 71.28 (3q) Jobs tax credit. (a) Definitions. In this subsection:

AB75,929,24 1. "Claimant" means a person certified to receive tax benefits under s. 560.2055 (2).

AB75,930,2 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).

AB75,930,5 (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:

AB75,930,8 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.

AB75,930,11 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).

AB75,930,19 (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.

AB75,930,22 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).

AB75,930,24 (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.

AB75,931,5 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, s. 1655 Section 1655. 71.28 (3r) of the statutes is created to read:

AB75,931,8 71.28 (3r) Meat processing facility investment credit. (a) Definitions. In this subsection:

AB75,931,9 1. "Claimant" means a person who files a claim under this subsection.

AB75,931,11 2. "Meat processing" means processing livestock into meat products or processing meat products for sale commercially.

AB75,931,16 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:

AB75,931,18 a. Building construction, including livestock handling, product intake, storage, and warehouse facilities.

AB75,931,19 b. Building additions.

AB75,931,21 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing, and waste facilities.

AB75,931,22 d. Livestock intake and storage equipment.

AB75,931,25 e. Processing and manufacturing equipment, including cutting equipment, mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking equipment, pipes, motors, pumps, and valves.

AB75,932,2 f. Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying, and product movement equipment.

AB75,932,3 g. Warehouse equipment, including storage and curing racks.

AB75,932,6 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.

AB75,932,10 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.

AB75,932,12 4. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB75,932,18 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.209, for taxable years beginning after December 31, 2008, and before January 1, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for meat processing modernization or expansion related to the claimant's meat processing operation.

AB75,932,21 (c) Limitations. 1. No credit may be allowed under this subsection for any amount that the claimant paid for expenses described under par. (b) that the claimant also claimed as a deduction under section 162 of the Internal Revenue Code.

AB75,932,23 2. The aggregate amount of credits that a claimant may claim under this subsection is $200,000.

AB75,933,3 3. a. The maximum amount of the credits that may be allocated under this subsection and ss. 71.07 (3r) and 71.47 (3r) in fiscal year 2009-10 is $300,000, as allocated under s. 560.209.

AB75,933,6 b. The maximum amount of the credits that may be allocated under this subsection and ss. 71.07 (3r) and 71.47 (3r) in fiscal year 2010-11, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.209.

AB75,933,15 4. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $200,000. 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.

AB75,933,19 5. If 2 or more persons own and operate the meat processing operation, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the meat processing operation shall not exceed $200,000.

AB75,933,22 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. 560.209.

AB75,933,24 (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.

AB75,934,5 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) (bd).

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

AB75,934,12 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).

AB75,934,17 (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:

AB75,934,20 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.

AB75,934,21 2. Multiply the amount determined under subd. 1. by 1.25.

AB75,934,23 (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.

AB75,934,25 (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.

AB75,935,6 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, s. 1657 Section 1657. 71.28 (5b) (c) 1. of the statutes is repealed.

AB75, s. 1658 Section 1658. 71.28 (5b) (c) 2. of the statutes is renumbered 71.28 (5b) (c).

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

AB75,935,14 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, s. 1660 Section 1660. 71.28 (5f) (e) of the statutes is created to read:

AB75,935,19 71.28 (5f) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2008. Credits under par. (b) 1. for taxable years beginning before January 1, 2009, may be carried forward to taxable years beginning after December 31, 2008.

AB75, s. 1661 Section 1661. 71.28 (5h) (e) of the statutes is created to read:

AB75,935,24 71.28 (5h) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2008. Credits under this subsection for taxable years beginning before January 1, 2009, may be carried forward to taxable years beginning after December 31, 2008.

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

AB75,936,7 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).

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

AB75,936,14 71.28 (6) (c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began and that the rehabilitation was approved by the secretary of the interior under 36 CFR 67.6.

AB75, s. 1664 Section 1664. 71.28 (6) (cm) of the statutes is created to read:

AB75,936,17 71.28 (6) (cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.

AB75, s. 1665 Section 1665. 71.28 (6) (f) of the statutes is amended to read:

AB75,937,18 71.28 (6) (f) A partnership, limited liability company , or tax-option corporation may not claim the credit under this section subsection. The individual partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation, in proportion to the ownership interest of each partner, member or shareholder. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.

AB75, s. 1666 Section 1666. 71.28 (6) (g) of the statutes is created to read:

AB75,937,23 71.28 (6) (g) 1. If a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.

AB75,938,3 2. Notwithstanding s. 71.77, the department may adjust or disallow the credit claimed under this subsection within 4 years after the date that the state historical society notifies the department that the expenditures for which the credit was claimed do not comply with the standards for certification promulgated under s. 44.02 (24).

AB75, s. 1667 Section 1667. 71.28 (8r) of the statutes is created to read: