SB77: Bill Text

SB77,7,9 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB77, s. 10 Section 10. 71.28 (1dy) of the statutes is created to read:

SB77,7,13 71.28 (1dy) Economic development tax credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

SB77,7,17 (b) Filing claims. Subject to the limitations under this subsection and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, the amount authorized for the claimant under s. 560.703.

SB77,7,21 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

SB77,8,4 2. 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 authorization to claim tax benefits under s. 560.703. 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.

SB77,8,6 (d) Administration. 1. Except as provided in subd. 2., sub. (4) (e) and (f), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB77,8,15 2. If a claimant's certification is revoked under s. 560.705, or if a claimant becomes ineligible for tax benefits under s. 560.702, the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.23 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

SB77,8,17 3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB77, s. 11 Section 11. 71.30 (3) (em) of the statutes is renumbered 71.30 (3) (eh).

SB77, s. 12 Section 12. 71.30 (3) (ema) of the statutes is created to read:

SB77,8,20 71.30 (3) (ema) Economic development tax credit under s. 71.28 (1dy).

SB77, s. 13 Section 13. 71.30 (3) (emb) of the statutes is renumbered 71.30 (3) (ei).

SB77, s. 14 Section 14. 71.30 (3) (en) of the statutes is renumbered 71.30 (3) (ej).

SB77, s. 15 Section 15. 71.30 (3) (eo) of the statutes is renumbered 71.30 (3) (ek).

SB77, s. 16 Section 16. 71.30 (3) (eom) of the statutes is renumbered 71.30 (3) (eL).

SB77, s. 17 Section 17. 71.34 (1k) (g) of the statutes is amended to read:

SB77,9,4 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to shareholders.

SB77, s. 18 Section 18. 71.45 (2) (a) 10. of the statutes is amended to read:

SB77,9,11 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx) (1dy), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

SB77, s. 19 Section 19. 71.47 (1dy) of the statutes is created to read:

SB77,9,15 71.47 (1dy) Economic development tax credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

SB77,9,19 (b) Filing claims. Subject to the limitations under this subsection and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of the tax, the amount authorized for the claimant under s. 560.703.

SB77,9,23 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

SB77,9,25 2. 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 authorization to claim tax benefits under s. 560.703. 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.

SB77,10,8 (d) Administration. 1. Except as provided in subd. 2., sub. (4) (e) and (f), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB77,10,17 2. If a claimant's certification is revoked under s. 560.705, or if a claimant becomes ineligible for tax benefits under s. 560.702, the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.43 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

SB77,10,19 3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB77, s. 20 Section 20. 71.49 (1) (em) of the statutes is renumbered 71.49 (1) (eh).

SB77, s. 21 Section 21. 71.49 (1) (ema) of the statutes is created to read:

SB77,10,22 71.49 (1) (ema) Economic development tax credit under s. 71.47 (1dy).

SB77, s. 22 Section 22. 71.49 (1) (emb) of the statutes is renumbered 71.49 (1) (ei).

SB77, s. 23 Section 23. 71.49 (1) (en) of the statutes is renumbered 71.49 (1) (ej).

SB77, s. 24 Section 24. 71.49 (1) (eo) of the statutes is renumbered 71.49 (1) (ek).

SB77, s. 25 Section 25. 71.49 (1) (eom) of the statutes is renumbered 71.49 (1) (eL).

SB77, s. 26 Section 26. 76.637 of the statutes is created to read:

SB77,11,5 76.637 Economic development tax credit. (1) Definition. In this section, "claimant" means an insurer who files a claim under this section and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

SB77,11,9 (2) Filing claims. Subject to the limitations under this section and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the fees due under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the amount authorized for the claimant under s. 560.703.

SB77,11,13 (3) 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 under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

SB77,11,23 (4) Administration. If an insurer's certification is revoked under s. 560.705, or if an insurer becomes ineligible for tax benefits under s. 560.702, the insurer may not claim credits under this section for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the insurer becomes ineligible for tax benefits; or succeeding taxable years and the insurer may not carry over unused credits from previous years to offset the fees imposed under ss. 76.60, 76.63, 76.65, 76.66, or 76.67 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the insurer becomes ineligible for tax benefits; or succeeding taxable years.

SB77, s. 27 Section 27. 76.67 (2) of the statutes is amended to read:

SB77,12,10 76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credits under ss. 76.635, 76.636, 76.637, and 76.655, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss. 76.635, 76.636, 76.637, and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.

SB77, s. 28 Section 28. 77.92 (4) of the statutes is amended to read:

SB77,13,2 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3s), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB77, s. 29 Section 29. 234.01 (4n) (a) 3m. e. of the statutes is amended to read:

SB77,13,7 234.01 (4n) (a) 3m. e. The facility is located in a targeted area, as determined by the authority after considering the factors set out in s. 560.605 (2m) (c), 2005 stats., s. 560.605 (2m) (d), 2005 stats., s. 560.605 (2m) (e), 2005 stats., s. 560.605 (2m) (g), 2007 stats., and s. 560.605 (2m) (a), (b), and (f) to, and (h).

SB77, s. 30 Section 30. 234.03 (2m) of the statutes is amended to read:

SB77,13,10 234.03 (2m) To issue notes and bonds in accordance with ss. 234.08, 234.40, 234.50, 234.60, 234.61, 234.626, 234.63, and 234.65.

SB77, s. 31 Section 31. 234.03 (11) of the statutes is amended to read:

SB77,13,15 234.03 (11) To collect fees and charges on mortgage loans and economic development loans and airport development loans under s. 234.63 (3) , 2007 stats., for the purpose of paying all or a portion of authority costs as the authority determines are reasonable and as approved by the authority.

SB77, s. 32 Section 32. 234.08 (1) of the statutes is amended to read:

SB77,14,5 234.08 (1) The authority may issue its negotiable notes and bonds in such principal amount, as, in the opinion of the authority, is necessary to provide sufficient funds for achieving its corporate purposes, including the purchase of certain mortgages and securities and the making of secured loans for low- and moderate-income housing, for the rehabilitation of existing structures and for the construction of facilities appurtenant thereto as provided in this chapter; for the making of secured loans to assist eligible elderly homeowners in paying property taxes and special assessments; for the payment of interest on notes and bonds of the authority during construction; for the awarding of airport development loans under s. 234.63 (3); for the establishment of reserves to secure such notes and bonds; for the provision of moneys for the housing development fund in order to make temporary loans to sponsors of housing projects as provided in this chapter; and for all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers.

SB77, s. 33 Section 33. 234.265 (2) of the statutes is amended to read:

SB77,14,13 234.265 (2) Records or portions of records consisting of personal or financial information provided by a person seeking a grant or loan under s. 234.63, 2007 stats., or s. 234.04, 234.08, 234.49, 234.59, 234.61, 234.63, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or 234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance under s. 234.66, 2005 stats., seeking investment of funds under s. 234.03 (18m), or in which the authority has invested funds under s. 234.03 (18m), unless the person consents to disclosure of the information.

SB77, s. 34 Section 34. 234.40 (4) of the statutes is amended to read:

SB77,14,19 234.40 (4) The limitations established in ss. 234.18, 234.50, 234.60, 234.61, 234.63, and 234.65 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for veterans housing loans in an aggregate principal amount exceeding $61,945,000, excluding bonds being issued to refund outstanding bonds.

SB77, s. 35 Section 35. 234.50 (4) of the statutes is amended to read:

SB77,15,2 234.50 (4) The limitations established in ss. 234.18, 234.40, 234.60, 234.61, 234.63, and 234.65 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.

SB77, s. 36 Section 36. 234.60 (2) of the statutes is amended to read:

SB77,15,5 234.60 (2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, 234.63, and 234.65 do not apply to bonds or notes issued under this section.

SB77, s. 37 Section 37. 234.61 (1) of the statutes is amended to read:

SB77,15,14 234.61 (1) Upon the authorization of the department of health services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18, 234.40, 234.50, 234.60, 234.63, and 234.65 do not apply to bonds or notes issued under this section. The definition of "nonprofit corporation" in s. 234.01 (9) does not apply to this section.

SB77, s. 38 Section 38. 234.63 of the statutes is repealed.

SB77, s. 39 Section 39. 560.605 (2m) (g) of the statutes is repealed.

SB77, s. 40 Section 40. 560.605 (7) (e) of the statutes is repealed.

SB77, s. 41 Section 41. Subchapter VI (title) of chapter 560 [precedes s. 560.70] of the statutes is repealed and recreated to read:

SB77,15,20 CHAPTER 560

SB77,15,23 SUBCHAPTER VI Tax incentives for business development in Wisconsin

SB77, s. 42 Section 42. 560.70 (2g) of the statutes is created to read:

SB77,15,25 560.70 (2g) "Eligible activity" means an activity described under s. 560.702.

SB77, s. 43 Section 43. 560.70 (2m) of the statutes is renumbered 560.70 (2m) (a) and amended to read:

SB77,16,9 560.70 (2m) (a) "Full-time Except as provided in par. (b), "full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.

SB77, s. 44 Section 44. 560.70 (2m) (b) of the statutes is created to read:

SB77,16,16 560.70 (2m) (b) The department may by rule specify circumstances under which the department may grant exceptions to the requirement under par. (a) that a full-time job means a job in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, but under no circumstances may a full-time job mean a job in which an individual, as a condition of employment, is required to work less than 37.5 hours per week.

SB77, s. 45 Section 45. 560.70 (4m) of the statutes is created to read:

SB77,17,4 560.70 (4m) "Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), or in a real work, real pay project position under s. 49.147 (3m), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under 26 USC 51 (d) (13) (A) by a designated local agency, as defined in 26 USC 51 (d) (12).

SB77, s. 46 Section 46. 560.70 (7) (a) of the statutes is amended to read:

SB77,17,8 560.70 (7) (a) Except as provided in pars. (b) and, (c), and (d), "tax benefits" means the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.

SB77, s. 47 Section 47. 560.70 (7) (d) of the statutes is created to read:

SB77,17,11 560.70 (7) (d) In ss. 560.701 to 560.706, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

SB77, s. 48 Section 48. 560.701 of the statutes is created to read:

SB77,17,15 560.701 Certification for tax benefits. (1) Application. Any person may apply to the department on a form prepared by the department for certification under this section. The application shall include all of the following:

SB77,17,16 (a) The name and address of the person.

SB77,17,17 (b) The federal tax identification number of the person.

SB77,17,19 (c) The names and addresses of the locations where the person conducts business and a description of the business activities conducted at those locations.

SB77,17,21 (d) A description of each eligible activity conducted or proposed to be conducted by the person.

SB77,17,23 (e) Other information required by the department or the department of revenue.

SB77,18,2 (2) Certification. (a) The department may certify a person who submits an application under sub. (1) if, after conducting an investigation, the department determines that the person is conducting or intends to conduct at least one eligible activity.

SB77,18,4 (b) The department shall provide a person certified under this section and the department of revenue with a copy of the certification.