SB461: Bill Text

SB461,9,9 71.49 (1) (dn) Supplement to federal new markets credit under s. 71.47 (5n).

SB461, s. 8 Section 8. 76.639 of the statutes is created to read:

SB461,9,16 76.639 New markets credit. (1) Filing claims. Subject to the limitations provided under this section and s. 560.2065, an insurer may claim as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.27 the amount the insurer paid to a qualified community development entity, as defined under 26 USC 45D (c), for a qualified equity investment, as defined under 26 USC 45D (b), at its original issue, multiplied by the following percentage:

SB461,9,18 1. For the taxable years that correspond to the first 3 credit allowance dates, as defined under 26 USC 45D (a) (3), 5 percent.

SB461,9,21 2. For the taxable years that correspond to the 4 credit allowance dates, as defined under 26 USC 45D (a) (3), following the credit allowance dates described in subd. 1., 6 percent.

SB461,9,24 (2) Limitations. No credit may be allowed under this section unless the insurer includes with the insurer's annual return under s. 76.64 a copy of the claimant's certification for tax benefits under s. 560.2065 (2).

SB461,10,6 (3) Carry-forward. If the credit under sub. (2) is not entirely offset against the fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance may be carried forward and credited against those fees for the following 15 years to the extent that it is not offset by those fees otherwise due in all the years between the year in which the expense was made and the year in which the carry-forward credit is claimed.

SB461, s. 9 Section 9. 560.2065 of the statutes is created to read:

SB461,10,9 560.2065 Supplement to federal new markets credit. (1) Definitions. In this section:

SB461,10,11 (a) "Credit allowance date" means a credit allowance date as defined under 26 USC 45D (a) (3).

SB461,10,13 (b) "Qualified community development entity" means a qualified community development entity as defined under 26 USC 45D (c).

SB461,10,15 (c) "Qualified equity investment" means a qualified equity investment as defined under 26 USC 45D (b).

SB461,10,17 (2) Certification. The department may certify a person to receive tax benefits under this section if all of the following apply:

SB461,10,20 (a) The person applies to the department for certification under this section and includes with the application documentation from the federal internal revenue service indicating that all of the following apply:

SB461,10,22 1. The person made a qualified equity investment in a qualified community development entity described in subd. 2.

SB461,10,25 2. The qualified community development entity's primary mission is serving, or providing investment capital for, low-income communities or low-income persons in this state.

SB461,11,2 3. The person is eligible to receive new markets tax credits under 26 USC 45D for the qualified equity investment described in subd. 1.

SB461,11,3 (b) The department verifies the information submitted under par. (a).

SB461,11,8 (3) Eligibility. A person certified under sub. (2) is eligible to receive tax credits under ss. 71.07 (5n), 71.28 (5n), 71.47 (5n), and 76.639 in each taxable year in which a credit allowance date falls if the person continues to hold the qualified equity investment described in sub. (2) (a) 1. in the taxable year in which the credit is claimed.

SB461,11,10 (4) Duties of the department. (a) The department of commerce shall notify the department of revenue of all of the following:

SB461,11,12 1. Every certification issued under sub. (2) and the date on which any such certification is revoked.

SB461,11,15 2. The maximum amount of the tax credits under ss. 71.07 (5n), 71.28 (5n), 71.47 (5n), and 76.639 that a person certified under sub. (2) may claim in each taxable year in which a credit allowance date falls.

SB461,11,19 (b) Annually, the department shall verify to the department of revenue that each person certified under sub. (2) is the holder of a qualified equity investment in the taxable year for which the person files a claim under s. 71.07 (5n), 71.28 (5n), 71.47 (5n), or 76.639.

SB461,11,21 (c) The department shall promulgate rules to administer this program, including all of the following:

SB461,11,23 1. Deadlines for the submission of an application for certification under this section.

SB461,11,25 2. The period for review of applications submitted under this section, which period may not exceed 45 days.

SB461,12,2 3. Criteria for reviewing and prioritizing applications for certification under this section.

SB461,12,5 (d) In consultation with the department of revenue, the department of commerce may promulgate rules governing the recapture of tax benefits awarded to a person certified under this section.

SB461, s. 10 Section 10. Nonstatutory provisions.

SB461,12,10 (1) (a) The department of commerce shall submit in proposed form the rules required under section 560.2065 (4) (c) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 4th month beginning after the effective date of this paragraph.

SB461,12,19 (b) Using the procedure under section 227.24 of the statutes, the department of commerce may promulgate rules required under section 560.2065 (4) (c) of the statutes, as created by this act, for the period before the effective date of the rules submitted under paragraph (a), but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.

SB461, s. 11 Section 11. Initial applicability.

SB461,12,21 (1) This act first applies to taxable years beginning on January 1, 2010.

SB461,12,22 (End)