(c) 6. No credit may be allowed under this subsection unless the 10
claimant submits with the claimant's return a copy of the claimant's credit 11
certification and allocation under s. 560.207.
SB62, s. 98
71.07 (3p) (d) 2. of the statutes is amended to read:
(d) 2. If Except as provided in subd. 3., if
the allowable amount of 14
the 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 16
due shall be certified by the department of revenue to the department of 17
administration for payment by check, share draft, or other draft drawn from the 18
appropriation account under s. 20.835 (2) (bn).
SB62, s. 99
71.07 (3p) (d) 3. of the statutes is created to read:
(d) 3. With regard to claims that are based on amounts described 21
under par. (b) that are paid by a dairy cooperative, if the allowable amount of the 22
claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the 23
amount of the claim not used to offset the tax due shall be certified by the department 24
of revenue to the department of administration for payment by check, share draft, 25
or other draft drawn from the appropriation account under s. 20.835 (2) (bp).
SB62, s. 100
71.07 (3r) of the statutes is created to read:
71.07 (3r) Meat processing facility investment credit.
In this 3
1. "Claimant" means a person who files a claim under this subsection.
2. "Meat processing" means processing livestock into meat products or 6
processing meat products for sale commercially.
3. "Meat processing modernization or expansion" means constructing, 8
improving, or acquiring buildings or facilities, or acquiring equipment, for meat 9
processing, including the following, if used exclusively for meat processing and if 10
acquired and placed in service in this state during taxable years that begin after 11
December 31, 2008, and before January 1, 2017:
a. Building construction, including livestock handling, product intake, storage, 13
and warehouse facilities.
b. Building additions.
c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing, 16
and waste facilities.
d. Livestock intake and storage equipment.
e. Processing and manufacturing equipment, including cutting equipment, 19
mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking 20
equipment, pipes, motors, pumps, and valves.
f. Packaging and handling equipment, including sealing, bagging, boxing, 22
labeling, conveying, and product movement equipment.
g. Warehouse equipment, including storage and curing racks.
h. Waste treatment and waste management equipment, including tanks, 2
blowers, separators, dryers, digesters, and equipment that uses waste to produce 3
energy, fuel, or industrial products.
i. Computer software and hardware used for managing the claimant's meat 5
processing operation, including software and hardware related to logistics, 6
inventory management, production plant controls, and temperature monitoring 7
4. "Used exclusively" means used to the exclusion of all other uses except for 9
use not exceeding 5 percent of total use.
(b) Filing claims.
Subject to the limitations provided in this subsection and s. 11
560.208, for taxable years beginning after December 31, 2008, and before January 12
1, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02 13
or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount 14
the claimant paid in the taxable year for meat processing modernization or 15
expansion related to the claimant's meat processing operation.
1. No credit may be allowed under this subsection for any 17
amount that the claimant paid for expenses described under par. (b) that the 18
claimant also claimed as a deduction under section 162
of the Internal Revenue Code.
2. The aggregate amount of credits that a claimant may claim under this 20
subsection is $200,000.
3. a. The maximum amount of the credits that may be allocated under this 22
subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2009-10 is $300,000, as 23
allocated under s. 560.208.
b. The maximum amount of the credits that may be allocated under this 2
subsection and ss. 71.28 (3r) and 71.47 (3r) in fiscal year 2010-11, and in each fiscal 3
year thereafter, is $700,000, as allocated under s. 560.208.
4. Partnerships, limited liability companies, and tax-option corporations may 5
not claim the credit under this subsection, but the eligibility for, and the amount of, 6
the credit are based on their payment of expenses under par. (b), except that the 7
aggregate amount of credits that the entity may compute shall not exceed $200,000. 8
A partnership, limited liability company, or tax-option corporation shall compute 9
the amount of credit that each of its partners, members, or shareholders may claim 10
and shall provide that information to each of them. Partners, members of limited 11
liability companies, and shareholders of tax-option corporations may claim the 12
credit in proportion to their ownership interest.
5. If 2 or more persons own and operate the meat processing operation, each 14
person may claim a credit under par. (b) in proportion to his or her ownership 15
interest, except that the aggregate amount of the credits claimed by all persons who 16
own and operate the meat processing operation shall not exceed $200,000.
6. No credit may be allowed under this subsection unless the claimant submits 18
with the claimant's return a copy of the claimant's credit certification and allocation 19
under s. 560.208.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the 21
credit under s. 71.28 (4), applies to the credit under this subsection.
2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise 23
due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due 24
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 2
account under s. 20.835 (2) (bd).
SB62, s. 101
71.07 (5b) (c) 1. of the statutes is repealed.
SB62, s. 102
71.07 (5b) (c) 2. of the statutes is renumbered 71.07 (5b) (c).
SB62, s. 103
71.07 (5d) (b) of the statutes is renumbered 71.07 (5d) (b) (intro.) 6
and amended to read:
(b) Filing claims.
(intro.) Subject to the limitations provided in this 8
subsection and in s. 560.205, a claimant may claim as a credit against the tax 9
imposed under s. 71.02 or 71.08, up to the amount of those taxes,
101. For taxable years beginning before January 1, 2008,
in each taxable year for 11
2 consecutive years, beginning with the taxable year as certified by the department 12
of commerce, an amount equal to 12.5 percent of the claimant's bona fide angel 13
investment made directly in a qualified new business venture.
SB62, s. 104
71.07 (5d) (b) 2. of the statutes is created to read:
(b) 2. For taxable years beginning after December 31, 2007, for the 16
taxable year certified by the department of commerce, an amount equal to 25 percent 17
of the claimant's bona fide angel investment made directly in a qualified new 18
SB62, s. 105
71.07 (5d) (c) 2. of the statutes is amended to read:
(c) 2. The For taxable years beginning before January 1, 2008, the 21
maximum amount of a claimant's investment that may be used as the basis for a 22
credit under this subsection is $2,000,000 for each investment made directly in a 23
business certified under s. 560.205 (1).
SB62, s. 106
71.07 (5e) (b) of the statutes is amended to read:
(b) Filing claims.
Subject to the limitations provided in this 2
subsection and subject to 2005 Wisconsin Act 479
, section 17
, beginning in the first 3
taxable year following the taxable year in which the claimant claims
an exemption 4a deduction
under s. 77.54 (48)
, a claimant may claim as a credit against 5
the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each 6
taxable year for 2 years, the amount of sales and use tax
certified by the department 7
of commerce that resulted from
the claimant claimed as an exemption claiming a
under s. 77.54 (48) 77.585 (9)
SB62, s. 107
71.07 (5e) (c) 1. of the statutes is amended to read:
(c) 1. No credit may be allowed under this subsection unless the 11
claimant satisfies the requirements under s. 77.54 (48) 77.585 (9)
SB62, s. 108
71.07 (5e) (c) 3. of the statutes is amended to read:
(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 15
by 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
71.08 (1) (intro.) of the statutes is amended to read:
71.08 (1) Imposition.
(intro.) If the tax imposed on a natural person, married 19
couple filing jointly, trust, or estate under s. 71.02, not considering the credits under 20
ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx),
(2fd), (3m), (3n), 21
(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), 24
and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than 25
the tax under this section, there is imposed on that natural person, married couple
filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative 2
minimum tax computed as follows:
SB62, s. 110
71.10 (1) of the statutes is amended to read:
71.10 (1) Allocation of gross income, deductions, credits between 2 or more
In any case of 2 or more organizations, trades or businesses (whether or 6
not incorporated, whether or not organized in the United States and,
whether or not 7
affiliated, and whether or not unitary
) owned or controlled directly or indirectly by 8
the same interests, the secretary or the secretary's delegate may distribute, 9
apportion or allocate gross income, deductions, credits or allowances between or 10
among such organizations, trades or businesses, if the secretary determines that 11
such distribution, apportionment or allocation is necessary in order to prevent 12
evasion of taxes or clearly to reflect the income of any of such organizations, trades 13
or 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
71.10 (1m) of the statutes is created to read:
71.10 (1m) Transactions without economic substance.
(a) If any person, 18
directly or indirectly, engages in a transaction or series of transactions without 19
economic substance to create a loss or to reduce taxable income or to increase credits 20
allowed in determining Wisconsin tax, the department shall determine the amount 21
of a taxpayer's taxable income or tax so as to reflect what would have been the 22
taxpayer's taxable income or tax if not for the transaction or transactions without 23
economic substance causing the reduction in taxable income or tax.
(b) A transaction has economic substance only if the taxpayer shows all of the 25
1. The transaction changes the taxpayer's economic position in a meaningful 2
way, apart from federal, state, local, and foreign tax effects.
2. The taxpayer has a substantial nontax purpose for entering into the 4
transaction and the transaction is a reasonable means of accomplishing the 5
substantial nontax purpose. A transaction has a substantial nontax purpose if it has 6
substantial potential for profit, disregarding any tax effects.
(c) With respect to transactions between members of a controlled group as 8
defined in section 267
(f) (1) of the Internal Revenue Code, such transactions shall 9
be presumed to lack economic substance and the taxpayer shall bear the burden of 10
establishing by clear and convincing evidence that a transaction or a series of 11
transactions between the taxpayer and one or more members of the controlled group 12
has economic substance.
SB62, s. 112
71.10 (4) (gv) of the statutes is created to read:
(gv) Economic development tax credit under s. 71.07 (2dy).
SB62, s. 113
71.10 (4) (i) of the statutes is amended to read:
(i) The total of claim of right credit under s. 71.07 (1), farmland 17
preservation credit under subch. IX, homestead credit under subch. VIII, farmland 18
tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 19
71.07 (2fd), dairy manufacturing facility investment credit under s. 71.07 (3p), meat
20processing facility investment credit under s. 71.07 (3r),
film production services 21
credit under s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit 22
under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), earned income tax 23
credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld 24
under subch. X.
SB62, s. 114
71.21 (4) of the statutes is amended to read:
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 4
the partnership's income.
SB62, s. 115
71.22 (1g) of the statutes is amended to read:
For purposes of s. 71.25 (9) (df) and,
(dh), (dj), and (dk)
, "commercial 7
domicile" means the location from which a trade or business is principally managed 8
and directed, based on any factors the department determines are appropriate, 9
including the location where the greatest number of employees of the trade or 10
business work, have their office or base of operations, or from which the employees 11
are directed or controlled.
SB62, s. 116
71.22 (1r) of the statutes is amended to read:
"Doing business in this state" includes issuing credit, debit, or travel 14
and 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 22
in a partnership that does business in this state, regardless of the percentage of 23
ownership; and owning, directly or indirectly, an interest in a limited liability 24
company that does business in this state, regardless of the percentage of ownership,
if the limited liability company is treated as a partnership for federal income tax 2
SB62, s. 117
71.22 (1t) of the statutes is amended to read:
For purposes of s. 71.25 (9) (df) and,
(dh), (dj), and (dk)
, "domicile" 5
means an individual's true, fixed, and permanent home where the individual intends 6
to remain permanently and indefinitely and to which, whenever absent, the 7
individual intends to return, except that no individual may have more than one 8
domicile at any time.
SB62, s. 118
71.22 (3g) of the statutes is created to read:
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 12
otherwise be deductible in determining net income under the Internal Revenue Code 13
as modified under s. 71.26 (3):
(a) Expenses, losses, and costs for, related to, or directly or indirectly in 15
connection with the acquisition, use, maintenance, management, ownership, sale, 16
exchange, or any other disposition of intangible property.
(b) Losses related to, or incurred in connection directly or indirectly with, 18
factoring transactions or discounting transactions.
(c) Royalty, patent, technical, and copyright fees.
(d) Licensing fees.
(e) Other similar expenses, losses, and costs.
SB62, s. 119
71.22 (3h) of the statutes is created to read:
"Intangible property" includes stocks, bonds, financial instruments, 24
patents, patent applications, trade names, trademarks, service marks, copyrights, 25
mask works, trade secrets, and similar types of intangible assets.
SB62, s. 120
71.22 (3m) of the statutes is amended to read:
For purposes of s. ss.
71.26 (2) (a) 7. and 9. and 71.255 (2) (d) 1.
"interest expenses" means interest that would otherwise be deductible under section 4163
of the Internal Revenue Code, as modified under s. 71.26 (3).
SB62, s. 121
71.22 (6d) of the statutes is created to read:
For purposes of s. 71.26 (2) (a) 7. and 9., "management fees" include 7
expenses and costs, not including interest expenses, pertaining to accounts 8
receivable, accounts payable, employee benefit plans, insurance, legal matters, 9
payroll, data processing, purchasing, taxation, financial matters, securities, 10
accounting, or reporting and compliance matters or similar activities, to the extent 11
that the amounts would otherwise be deductible in determining net income under 12
the Internal Revenue Code as modified by s. 71.26 (3).
SB62, s. 122
71.22 (9g) of the statutes is amended to read:
For purposes of s. 71.25 (9) (df) and,
(dh), (dj), and (dk)
, "state" means 15
a state of the United States, the District of Columbia, the commonwealth of Puerto 16
Rico, or any territory or possession of the United States, unless the context requires 17
that "state" means only the state of Wisconsin.
SB62, s. 123
71.25 (intro.) of the statutes is amended to read:
1971.25 Situs of income; allocation and apportionment.
(intro.) For 20
purposes of determining the situs of income under this section and s. 71.255 (5) (a)
211. and 2.
SB62, s. 124
71.25 (5) (b) 1. of the statutes is renumbered 71.25 (5) (b).
SB62, s. 125
71.25 (5) (b) 2. of the statutes is repealed.
SB62, s. 126
71.25 (9) (d) of the statutes is repealed.
SB62, s. 127
71.25 (9) (dj) of the statutes is created to read:
(dj) 1. Except as provided in par. (df), gross royalties and other gross 2
receipts received for the use or license of intangible property, including patents, 3
copyrights, trademarks, trade names, service names, franchises, licenses, plans, 4
specifications, blueprints, processes, techniques, formulas, designs, layouts, 5
patterns, drawings, manuals, technical know-how, contracts, and customer lists, are 6
sales in this state if any of the following applies: