AB75: Bill Text

AB75,1000,14 (c) Limitations. Section 71.28 (4) (b) to (d) and (i), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75,1000,16 (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.

AB75,1000,22 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. 1723 Section 1723. 71.47 (5b) (c) 1. of the statutes is repealed.

AB75, s. 1724 Section 1724. 71.47 (5b) (c) 2. of the statutes is renumbered 71.47 (5b) (c).

AB75, s. 1725 Section 1725. 71.47 (5b) (d) 3. of the statutes is created to read:

AB75,1001,5 71.47 (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. 1726 Section 1726. 71.47 (5f) (e) of the statutes is created to read:

AB75,1001,10 71.47 (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. 1727 Section 1727. 71.47 (5h) (e) of the statutes is created to read:

AB75,1001,15 71.47 (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. 1728 Section 1728. 71.47 (5i) (b) of the statutes is amended to read:

AB75,1001,23 71.47 (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. 71.43, 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. 1729 Section 1729 . 71.47 (6) (c) of the statutes is amended to read:

AB75,1002,6 71.47 (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. 1730 Section 1730. 71.47 (6) (cm) of the statutes is created to read:

AB75,1002,9 71.47 (6) (cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.

AB75, s. 1731 Section 1731. 71.47 (6) (f) of the statutes is amended to read:

AB75,1003,10 71.47 (6) (f) A partnership, limited liability company , or tax-option corporation may not claim the credit under this 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. 1732 Section 1732. 71.47 (6) (g) of the statutes is created to read:

AB75,1003,15 71.47 (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.

AB75,1003,20 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. 1733 Section 1733. 71.47 (8r) of the statutes is created to read:

AB75,1003,23 71.47 (8r) Beginning farmer and farm asset owner tax credit. (a) Definitions. In this subsection:

AB75,1003,25 1. "Agricultural assets" means machinery, equipment, facilities, or livestock that is used in farming.

AB75,1004,2 2. "Beginning farmer" means a person who meets the conditions specified in s. 93.53 (2).

AB75,1004,4 3. "Claimant" means an established farmer who files a claim under this subsection.

AB75,1004,6 4. "Established farmer" means a person who meets the conditions specified in s. 93.53 (3).

AB75,1004,8 5. "Farming" has the meaning given in section 464 (e) (1) of the Internal Revenue Code.

AB75,1004,11 6. "Lease amount" is the amount of the cash payment paid by a beginning farmer to an established farmer each year for leasing the established farmer's agricultural assets.

AB75,1004,20 (b) Filing claims. For taxable years beginning after December 31, 2010, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 15 percent of the lease amount received by the claimant in the taxable year. If the allowable amount of the claim exceeds the taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (en).

AB75,1004,23 (c) Limitations. 1. A claimant may only claim the credit under this subsection for the first 3 years of any lease of the claimant's agricultural assets to a beginning farmer.

AB75,1004,25 2. Along with a claimant's income tax return, a claimant shall submit to the department a certificate of eligibility provided under s. 93.53 (5) (c).

AB75,1005,8 3. 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 the amounts received by the entities 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.

AB75,1005,10 (d) Administration. Subsection (4) (e), (g), and (h), as it applies to the credit under that sub. (4), applies to the credit under this subsection.

AB75, s. 1734 Section 1734. 71.49 (1) (db) of the statutes is created to read:

AB75,1005,12 71.49 (1) (db) Super research and development credit under s. 71.47 (4m).

AB75, s. 1735 Section 1735. 71.49 (1) (em) of the statutes is renumbered 71.49 (1) (eh).

AB75, s. 1736 Section 1736. 71.49 (1) (ema) of the statutes is created to read:

AB75,1005,15 71.49 (1) (ema) Economic development tax credit under s. 71.47 (1dy).

AB75, s. 1737 Section 1737. 71.49 (1) (emb) of the statutes is renumbered 71.49 (1) (ei).

AB75, s. 1738 Section 1738. 71.49 (1) (en) of the statutes is renumbered 71.49 (1) (ej).

AB75, s. 1739 Section 1739. 71.49 (1) (eo) of the statutes is renumbered 71.49 (1) (ek).

AB75, s. 1740 Section 1740. 71.49 (1) (eom) of the statutes is renumbered 71.49 (1) (eL).

AB75, s. 1741 Section 1741. 71.49 (1) (f) of the statutes is amended to read:

AB75,1006,2 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), job tax credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), enterprise zone jobs credit under s. 71.47 (3w), film production services credit under s. 71.47 (5f) (b) 2., beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

AB75, s. 1742 Section 1742. 71.54 (2m) of the statutes is created to read:

AB75,1006,16 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years beginning after December 31, 2009, the dollar amount for the maximum household income under sub. (1) (f) 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 2008, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. The 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.

AB75,1006,22 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) 2. such that, as a claimant's income increases from the threshold income under sub. (1) (f) 1. and 2., to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.

AB75, s. 1743 Section 1743. 71.57 of the statutes is amended to read:

AB75,1007,2 71.57 Purpose. The purpose of this subchapter ss. 71.58 to 71.61 is to provide credit to owners of farmland which is subject to agricultural use restrictions, through a system of income or franchise tax credits and refunds and appropriations from the general fund.

AB75, s. 1744 Section 1744. 71.58 (intro.) of the statutes is amended to read:

AB75,1007,4 71.58 Definitions. (intro.) In this subchapter ss. 71.57 to 71.61:

AB75, s. 1745 Section 1745. 71.58 (1) (intro.) of the statutes is amended to read:

AB75,1007,8 71.58 (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 subchapter ss. 71.57 to 71.61 is claimed, except as follows:

AB75, s. 1746 Section 1746. 71.58 (1) (b) of the statutes is amended to read:

AB75,1007,13 71.58 (1) (b) If any person in a household has claimed or will claim credit under subch. VIII, all persons from that household are ineligible to claim any credit under this subchapter ss. 71.57 to 71.61 for the year to which the credit under subch. VIII pertained.

AB75, s. 1747 Section 1747. 71.58 (1) (d) of the statutes is amended to read:

AB75,1007,21 71.58 (1) (d) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, the personal representative of an estate and the trustee of a trust shall be deemed owners of farmland. "Claimant" does not include the estate of a person who is a nonresident of this state on the person's date of death, a trust created by a nonresident person, a trust which receives Wisconsin real property from a nonresident person or a trust in which a nonresident settlor retains a beneficial interest.

AB75, s. 1748 Section 1748. 71.58 (1) (e) of the statutes is amended to read:

AB75,1007,25 71.58 (1) (e) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, when land is subject to a land contract, the claimant shall be the vendee under the contract.

AB75, s. 1749 Section 1749. 71.58 (1) (f) of the statutes is amended to read:

AB75,1008,4 71.58 (1) (f) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, when a guardian has been appointed in this state for a ward who owns the farmland, the claimant shall be the guardian on behalf of the ward.

AB75, s. 1750 Section 1750. 71.58 (3) of the statutes is amended to read:

AB75,1008,14 71.58 (3) "Farmland" means 35 or more acres of real property in this state owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subchapter ss. 71.57 to 71.61 is claimed if the farmland, during that year, produced not less than $6,000 in gross farm profits resulting from the farmland's agricultural use, as defined in s. 91.01 (1), 2007 stats., or if the farmland, 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. 1751 Section 1751. 71.58 (4) of the statutes is amended to read:

AB75,1008,21 71.58 (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. 1752 Section 1752. 71.58 (8) of the statutes is amended to read:

AB75,1009,20 71.58 (8) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland and improvements owned by the claimant or any member of the claimant's household in any calendar year under ch. 70, less the tax credit, if any, afforded in respect of the property by s. 79.10. "Property taxes accrued" shall not exceed $6,000. If farmland is owned by a tax-option corporation, a limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subsection, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subchapter ss. 71.57 to 71.61, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.

AB75, s. 1753 Section 1753. 71.59 (1) (a) of the statutes is amended to read:

AB75,1010,5 71.59 (1) (a) Subject to the limitations provided in this subchapter ss. 71.57 to 71.61 and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or franchise taxes otherwise due, the amount derived under s. 71.60. If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.

AB75, s. 1754 Section 1754. 71.59 (1) (b) (intro.) of the statutes is amended to read:

AB75,1010,9 71.59 (1) (b) (intro.) Every claimant under this subchapter ss. 71.57 to 71.61 shall supply, at the request of the department, in support of the claim, all of the following:

AB75, s. 1755 Section 1755. 71.59 (1) (b) 4. of the statutes is amended to read:

AB75,1010,13 71.59 (1) (b) 4. Certification by the claimant that each county land conservation committee with jurisdiction over the farmland has been notified that the claimant intends to submit a claim under this subchapter ss. 71.57 to 71.61.

AB75, s. 1756 Section 1756. 71.59 (1) (c) of the statutes is amended to read:

AB75,1010,21 71.59 (1) (c) A farmland preservation agreement submitted under par. (b) 3. shall contain provisions specified under s. 91.13 (8), 2007 stats., including either a provision requiring farming operations to be conducted in substantial accordance with a soil and water conservation plan prepared under s. 92.104, 2007 stats., or a provision requiring farming operations to be conducted in compliance with reasonable soil and water conservation standards established under s. 92.105, 2007 stats.

AB75, s. 1757 Section 1757. 71.59 (1) (d) 1. of the statutes is amended to read:

AB75,1010,25 71.59 (1) (d) 1. That the lands are within the boundaries of an agricultural zoning district which is part of an adopted ordinance meeting the standards of subch. V of ch. 91, 2007 stats., and certified under s. 91.06, 2007 stats.

AB75, s. 1758 Section 1758. 71.59 (1) (d) 5. of the statutes is amended to read:

AB75,1011,5 71.59 (1) (d) 5. That soil and water conservation standards applicable to the land are established and approved as required under s. 92.105 (1) to (3), 2007 stats., and that no notice of noncompliance is in effect under s. 92.105 (5) , 2007 stats., with respect to the claimant at the time the certificate is issued.

AB75, s. 1759 Section 1759. 71.59 (2) (intro.) of the statutes is amended to read:

AB75,1011,8 71.59 (2) Ineligible claims. (intro.) No credit shall be allowed under this subchapter ss. 71.57 to 71.61:

AB75, s. 1760 Section 1760. 71.59 (2) (b) of the statutes is amended to read:

AB75,1011,12 71.59 (2) (b) If a notice of noncompliance with an applicable soil and water conservation plan under s. 92.104, 2007 stats., is in effect with respect to the claimant at the time the claim is filed.

AB75, s. 1761 Section 1761. 71.59 (2) (c) of the statutes is amended to read:

AB75,1011,16 71.59 (2) (c) If a notice of noncompliance with applicable soil and water conservation standards under s. 92.105, 2007 stats., is in effect with respect to the claimant at the time the claim is filed.

AB75, s. 1762 Section 1762. 71.59 (2) (d) of the statutes is amended to read:

AB75,1011,21 71.59 (2) (d) For property taxes accrued on farmland zoned for exclusive agricultural use under an ordinance certified under subch. V of ch. 91, 2007 stats., which is granted a special exception or conditional use permit for a use which is not an agricultural use, as defined in s. 91.01 (1), 2007 stats.