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SB62,47,76 71.07 (3p) (a) 1m. "Dairy cooperative" means a business organized under ch.
7185 or 193 for the purpose of obtaining or processing milk.
SB62, s. 91 8Section 91. 71.07 (3p) (a) 3. (intro.) of the statutes is amended to read:
SB62,47,159 71.07 (3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion"
10means constructing, improving, or acquiring buildings or facilities, or acquiring
11equipment, for dairy manufacturing, including the following, if used exclusively for
12dairy manufacturing and if acquired and placed in service in this state during
13taxable years that begin after December 31, 2006, and before January 1, 2015, or, in
14the case of dairy cooperatives, if acquired and placed in service in this state during
15taxable years that begin after December 31, 2008, and before January 1, 2017
:
SB62, s. 92 16Section 92. 71.07 (3p) (b) of the statutes is amended to read:
SB62,47,2317 71.07 (3p) (b) Filing claims. Subject to the limitations provided in this
18subsection and s. 560.207, except as provided in par. (c) 5., for taxable years
19beginning after December 31, 2006, and before January 1, 2015, a claimant may
20claim as a credit against the taxes imposed under s. 71.02 or 71.08, up to the amount
21of the tax, an amount equal to 10 percent of the amount the claimant paid in the
22taxable year for dairy manufacturing modernization or expansion related to the
23claimant's dairy manufacturing operation.
SB62, s. 93 24Section 93. 71.07 (3p) (c) 2m. b. of the statutes is amended to read:
SB62,48,4
171.07 (3p) (c) 2m. b. The maximum amount of the credits that may be claimed
2by all claimants, other than members of dairy cooperatives, under this subsection
3and ss. 71.28 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year
4thereafter, is $700,000, as allocated under s. 560.207.
SB62, s. 94 5Section 94. 71.07 (3p) (c) 2m. bm. of the statutes is created to read:
SB62,48,126 71.07 (3p) (c) 2m. bm. The maximum amount of the credits that may be claimed
7by members of dairy cooperatives under this subsection and ss. 71.28 (3p) and 71.47
8(3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the
9maximum amount of the credits that may be claimed by members of dairy
10cooperatives under this subsection and ss. 71.28 (3p) and 71.47 (3p) in fiscal year
112010-11, and in each fiscal year thereafter, is $700,000, as allocated under s.
12560.207.
SB62, s. 95 13Section 95. 71.07 (3p) (c) 3. of the statutes is amended to read:
SB62,49,214 71.07 (3p) (c) 3. Partnerships, limited liability companies, and tax-option
15corporations, and dairy cooperatives may not claim the credit under this subsection,
16but the eligibility for, and the amount of, the credit are based on their payment of
17expenses under par. (b), except that the aggregate amount of credits that the entity
18may compute shall not exceed $200,000 for each of the entity's dairy manufacturing
19facilities
. A partnership, limited liability company, or tax-option corporation, or
20dairy cooperative
shall compute the amount of credit that each of its partners,
21members, or shareholders may claim and shall provide that information to each of
22them. Partners, members of limited liability companies, and shareholders of
23tax-option corporations may claim the credit in proportion to their ownership
24interest. 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.
SB62, s. 96 3Section 96. 71.07 (3p) (c) 5. of the statutes is created to read:
SB62,49,74 71.07 (3p) (c) 5. A claimant who is a member of a dairy cooperative may claim
5the credit, based on amounts described under par. (b) that are paid by the dairy
6cooperative, for taxable years beginning after December 31, 2008, and before
7January 1, 2017.
SB62, s. 97 8Section 97. 71.07 (3p) (c) 6. of the statutes is created to read:
SB62,49,119 71.07 (3p) (c) 6. No credit may be allowed under this subsection unless the
10claimant submits with the claimant's return a copy of the claimant's credit
11certification and allocation under s. 560.207.
SB62, s. 98 12Section 98. 71.07 (3p) (d) 2. of the statutes is amended to read:
SB62,49,1813 71.07 (3p) (d) 2. If Except as provided in subd. 3., if the allowable amount of
14the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08 or no
15tax is due under s. 71.02 or 71.08
, the amount of the claim not used to offset the tax
16due shall be certified by the department of revenue to the department of
17administration for payment by check, share draft, or other draft drawn from the
18appropriation account under s. 20.835 (2) (bn).
SB62, s. 99 19Section 99. 71.07 (3p) (d) 3. of the statutes is created to read:
SB62,49,2520 71.07 (3p) (d) 3. With regard to claims that are based on amounts described
21under par. (b) that are paid by a dairy cooperative, if the allowable amount of the
22claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the
23amount of the claim not used to offset the tax due shall be certified by the department
24of revenue to the department of administration for payment by check, share draft,
25or other draft drawn from the appropriation account under s. 20.835 (2) (bp).
SB62, s. 100
1Section 100. 71.07 (3r) of the statutes is created to read:
SB62,50,32 71.07 (3r) Meat processing facility investment credit. (a) Definitions. In this
3subsection:
SB62,50,44 1. "Claimant" means a person who files a claim under this subsection.
SB62,50,65 2. "Meat processing" means processing livestock into meat products or
6processing meat products for sale commercially.
SB62,50,117 3. "Meat processing modernization or expansion" means constructing,
8improving, or acquiring buildings or facilities, or acquiring equipment, for meat
9processing, including the following, if used exclusively for meat processing and if
10acquired and placed in service in this state during taxable years that begin after
11December 31, 2008, and before January 1, 2017:
SB62,50,1312 a. Building construction, including livestock handling, product intake, storage,
13and warehouse facilities.
SB62,50,1414 b. Building additions.
SB62,50,1615 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing,
16and waste facilities.
SB62,50,1717 d. Livestock intake and storage equipment.
SB62,50,2018 e. Processing and manufacturing equipment, including cutting equipment,
19mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking
20equipment, pipes, motors, pumps, and valves.
SB62,50,2221 f. Packaging and handling equipment, including sealing, bagging, boxing,
22labeling, conveying, and product movement equipment.
SB62,50,2323 g. Warehouse equipment, including storage and curing racks.
SB62,51,3
1h. Waste treatment and waste management equipment, including tanks,
2blowers, separators, dryers, digesters, and equipment that uses waste to produce
3energy, fuel, or industrial products.
SB62,51,74 i. Computer software and hardware used for managing the claimant's meat
5processing operation, including software and hardware related to logistics,
6inventory management, production plant controls, and temperature monitoring
7controls.
SB62,51,98 4. "Used exclusively" means used to the exclusion of all other uses except for
9use not exceeding 5 percent of total use.
SB62,51,1510 (b) Filing claims. Subject to the limitations provided in this subsection and s.
11560.208, for taxable years beginning after December 31, 2008, and before January
121, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02
13or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount
14the claimant paid in the taxable year for meat processing modernization or
15expansion related to the claimant's meat processing operation.
SB62,51,1816 (c) Limitations. 1. No credit may be allowed under this subsection for any
17amount that the claimant paid for expenses described under par. (b) that the
18claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
SB62,51,2019 2. The aggregate amount of credits that a claimant may claim under this
20subsection is $200,000.
SB62,51,2321 3. a. The maximum amount of the credits that may be allocated under this
22subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2009-10 is $300,000, as
23allocated under s. 560.208.
SB62,52,3
1b. The maximum amount of the credits that may be allocated under this
2subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2010-11, and in each fiscal
3year thereafter, is $700,000, as allocated under s. 560.208.
SB62,52,124 4. Partnerships, limited liability companies, and tax-option corporations may
5not claim the credit under this subsection, but the eligibility for, and the amount of,
6the credit are based on their payment of expenses under par. (b), except that the
7aggregate amount of credits that the entity may compute shall not exceed $200,000.
8A partnership, limited liability company, or tax-option corporation shall compute
9the amount of credit that each of its partners, members, or shareholders may claim
10and shall provide that information to each of them. Partners, members of limited
11liability companies, and shareholders of tax-option corporations may claim the
12credit in proportion to their ownership interest.
SB62,52,1613 5. If 2 or more persons own and operate the meat processing operation, each
14person may claim a credit under par. (b) in proportion to his or her ownership
15interest, except that the aggregate amount of the credits claimed by all persons who
16own and operate the meat processing operation shall not exceed $200,000.
SB62,52,1917 6. No credit may be allowed under this subsection unless the claimant submits
18with the claimant's return a copy of the claimant's credit certification and allocation
19under s. 560.208.
SB62,52,2120 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
21credit under s. 71.28 (4), applies to the credit under this subsection.
SB62,53,222 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
23due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due
24shall be certified by the department of revenue to the department of administration

1for payment by check, share draft, or other draft drawn from the appropriation
2account under s. 20.835 (2) (bd).
SB62, s. 101 3Section 101. 71.07 (5b) (c) 1. of the statutes is repealed.
SB62, s. 102 4Section 102. 71.07 (5b) (c) 2. of the statutes is renumbered 71.07 (5b) (c).
SB62, s. 103 5Section 103. 71.07 (5d) (b) of the statutes is renumbered 71.07 (5d) (b) (intro.)
6and amended to read:
SB62,53,97 71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this
8subsection and in s. 560.205, a claimant may claim as a credit against the tax
9imposed under s. 71.02 or 71.08, up to the amount of those taxes, the following:
SB62,53,13 101. For taxable years beginning before January 1, 2008, in each taxable year for
112 consecutive years, beginning with the taxable year as certified by the department
12of commerce, an amount equal to 12.5 percent of the claimant's bona fide angel
13investment made directly in a qualified new business venture.
SB62, s. 104 14Section 104. 71.07 (5d) (b) 2. of the statutes is created to read:
SB62,53,1815 71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, for the
16taxable year certified by the department of commerce, an amount equal to 25 percent
17of the claimant's bona fide angel investment made directly in a qualified new
18business venture.
SB62, s. 105 19Section 105. 71.07 (5d) (c) 2. of the statutes is amended to read:
SB62,53,2320 71.07 (5d) (c) 2. The For taxable years beginning before January 1, 2008, the
21maximum amount of a claimant's investment that may be used as the basis for a
22credit under this subsection is $2,000,000 for each investment made directly in a
23business certified under s. 560.205 (1).
SB62, s. 106 24Section 106. 71.07 (5e) (b) of the statutes is amended to read:
SB62,54,8
171.07 (5e) (b) Filing claims. Subject to the limitations provided in this
2subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
3taxable year following the taxable year in which the claimant claims an exemption
4a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
5the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each
6taxable year for 2 years, the amount of sales and use tax certified by the department
7of commerce that resulted from the claimant claimed as an exemption claiming a
8deduction
under s. 77.54 (48) 77.585 (9).
SB62, s. 107 9Section 107. 71.07 (5e) (c) 1. of the statutes is amended to read:
SB62,54,1110 71.07 (5e) (c) 1. No credit may be allowed under this subsection unless the
11claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).
SB62, s. 108 12Section 108. 71.07 (5e) (c) 3. of the statutes is amended to read:
SB62,54,1613 71.07 (5e) (c) 3. The total amount of the credits and exemptions the sales and
14use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
15by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48)
1677.585 (9) is $7,500,000, as determined by the department of commerce.
SB62, s. 109 17Section 109. 71.08 (1) (intro.) of the statutes is amended to read:
SB62,55,218 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
19couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
20ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (2fd), (3m), (3n),
21(3p), (3r), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (6), (6e), and (9e), 71.28 (1dd), (1de),
22(1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w), and 71.47
23(1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w),
24and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than
25the tax under this section, there is imposed on that natural person, married couple

1filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative
2minimum tax computed as follows:
SB62, s. 110 3Section 110. 71.10 (1) of the statutes is amended to read:
SB62,55,154 71.10 (1) Allocation of gross income, deductions, credits between 2 or more
5businesses.
In any case of 2 or more organizations, trades or businesses (whether or
6not incorporated, whether or not organized in the United States and, whether or not
7affiliated, and whether or not unitary) owned or controlled directly or indirectly by
8the same interests, the secretary or the secretary's delegate may distribute,
9apportion or allocate gross income, deductions, credits or allowances between or
10among such organizations, trades or businesses, if the secretary determines that
11such distribution, apportionment or allocation is necessary in order to prevent
12evasion of taxes or clearly to reflect the income of any of such organizations, trades
13or businesses. The authority granted under this subsection is in addition to, and not
14a limitation of or dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26
15(2) (a) 7. and 8., 71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23).
SB62, s. 111 16Section 111. 71.10 (1m) of the statutes is created to read:
SB62,55,2317 71.10 (1m) Transactions without economic substance. (a) If any person,
18directly or indirectly, engages in a transaction or series of transactions without
19economic substance to create a loss or to reduce taxable income or to increase credits
20allowed in determining Wisconsin tax, the department shall determine the amount
21of a taxpayer's taxable income or tax so as to reflect what would have been the
22taxpayer's taxable income or tax if not for the transaction or transactions without
23economic substance causing the reduction in taxable income or tax.
SB62,55,2524 (b) A transaction has economic substance only if the taxpayer shows all of the
25following:
SB62,56,2
11. The transaction changes the taxpayer's economic position in a meaningful
2way, apart from federal, state, local, and foreign tax effects.
SB62,56,63 2. The taxpayer has a substantial nontax purpose for entering into the
4transaction and the transaction is a reasonable means of accomplishing the
5substantial nontax purpose. A transaction has a substantial nontax purpose if it has
6substantial potential for profit, disregarding any tax effects.
SB62,56,127 (c) With respect to transactions between members of a controlled group as
8defined in section 267 (f) (1) of the Internal Revenue Code, such transactions shall
9be presumed to lack economic substance and the taxpayer shall bear the burden of
10establishing by clear and convincing evidence that a transaction or a series of
11transactions between the taxpayer and one or more members of the controlled group
12has economic substance.
SB62, s. 112 13Section 112. 71.10 (4) (gv) of the statutes is created to read:
SB62,56,1414 71.10 (4) (gv) Economic development tax credit under s. 71.07 (2dy).
SB62, s. 113 15Section 113. 71.10 (4) (i) of the statutes is amended to read:
SB62,56,2416 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
17preservation credit under subch. IX, homestead credit under subch. VIII, farmland
18tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
1971.07 (2fd), dairy manufacturing facility investment credit under s. 71.07 (3p), meat
20processing facility investment credit under s. 71.07 (3r),
film production services
21credit under s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit
22under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), earned income tax
23credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld
24under subch. X.
SB62, s. 114 25Section 114. 71.21 (4) of the statutes is amended to read:
SB62,57,4
171.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
2(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5e),
3(5f), (5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added to
4the partnership's income.
SB62, s. 115 5Section 115. 71.22 (1g) of the statutes is amended to read:
SB62,57,116 71.22 (1g) For purposes of s. 71.25 (9) (df) and, (dh), (dj), and (dk), "commercial
7domicile" means the location from which a trade or business is principally managed
8and directed, based on any factors the department determines are appropriate,
9including the location where the greatest number of employees of the trade or
10business work, have their office or base of operations, or from which the employees
11are directed or controlled.
SB62, s. 116 12Section 116. 71.22 (1r) of the statutes is amended to read:
SB62,58,213 71.22 (1r) "Doing business in this state" includes issuing credit, debit, or travel
14and entertainment cards to customers in this state; regularly selling products or
15services of any kind or nature to customers in this state that receive the product or
16service in this state; regularly soliciting business from potential customers in this
17state; regularly performing services outside this state for which the benefits are
18received in this state; regularly engaging in transactions with customers in this state
19that involve intangible property and result in receipts flowing to the taxpayer from
20within this state; holding loans secured by real or tangible personal property located
21in this state;
owning, directly or indirectly, a general or limited partnership interest
22in a partnership that does business in this state, regardless of the percentage of
23ownership; and owning, directly or indirectly, an interest in a limited liability
24company that does business in this state, regardless of the percentage of ownership,

1if the limited liability company is treated as a partnership for federal income tax
2purposes.
SB62, s. 117 3Section 117. 71.22 (1t) of the statutes is amended to read:
SB62,58,84 71.22 (1t) For purposes of s. 71.25 (9) (df) and, (dh), (dj), and (dk), "domicile"
5means an individual's true, fixed, and permanent home where the individual intends
6to remain permanently and indefinitely and to which, whenever absent, the
7individual intends to return, except that no individual may have more than one
8domicile at any time.
SB62, s. 118 9Section 118. 71.22 (3g) of the statutes is created to read:
SB62,58,1310 71.22 (3g) For purposes of ss. 71.26 (2) (a) 7. and 9. and 71.255 (2) (d) 1.,
11"intangible expenses" include the following, to the extent that the amounts would
12otherwise be deductible in determining net income under the Internal Revenue Code
13as modified under s. 71.26 (3):
SB62,58,1614 (a) Expenses, losses, and costs for, related to, or directly or indirectly in
15connection with the acquisition, use, maintenance, management, ownership, sale,
16exchange, or any other disposition of intangible property.
SB62,58,1817 (b) Losses related to, or incurred in connection directly or indirectly with,
18factoring transactions or discounting transactions.
SB62,58,1919 (c) Royalty, patent, technical, and copyright fees.
SB62,58,2020 (d) Licensing fees.
SB62,58,2121 (e) Other similar expenses, losses, and costs.
SB62, s. 119 22Section 119. 71.22 (3h) of the statutes is created to read:
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