LRB-0652/1
JK:jld:md
2011 - 2012 LEGISLATURE
November 3, 2011 - Introduced by Representatives Mursau, Spanbauer, Petryk,
Petrowski, A. Ott and
Ripp, cosponsored by Senators Holperin and Taylor.
Referred to Committee on Jobs, Economy and Small Business.
AB359,1,4
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and
to create 71.07 (5n), 71.10 (4) (cr), 71.28 (5n), 71.30
3(3) (cr), 71.47 (5n) and 71.49 (1) (cr) of the statutes;
relating to: an income and
4franchise tax credit for providing broadband service.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for amounts that a taxpayer
spends for infrastructure costs to provide broadband service to any of the following:
1. Rural areas in this state.
2. Areas in this state where there is no broadband service or where the Internet
access service is no more than 200 kilobits per second.
3. Areas in this state that are populated primarily by low-income persons.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB359, s. 1
5Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB359,2,46
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
7(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
1(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), and (8r) and
2not passed through by a partnership, limited liability company, or tax-option
3corporation that has added that amount to the partnership's, company's, or
4tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB359, s. 2
5Section
2. 71.07 (5n) of the statutes is created to read:
AB359,2,66
71.07
(5n) Broadband service credit. (a)
Definitions. In this subsection:
AB359,2,77
1. "Claimant" means a person who files a claim under this subsection.
AB359,2,108
2. "Low-income persons" means low-income persons, and very low-income
9persons, as determined by the income limits published by the federal department of
10housing and urban development under the National Housing Act of 1937.
AB359,2,1211
3. "Unserved area" means an area of this state where there is no broadband
12service or where Internet service is no more 200 kilobits per second.
AB359,2,1513
(b)
Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the tax imposed under s. 71.02, up to the
15amount of the tax, an amount equal to any of the following:
AB359,2,1916
1. Ten percent of the amount the claimant paid in the taxable year for
17infrastructure costs to provide broadband service to a rural area of this state or an
18area in this state populated primarily by low-income persons, if the broadband
19service is at least 5 megabits per second, but less than 50 megabits per second.
AB359,2,2320
2. Twenty percent of the amount the claimant paid in the taxable year for
21infrastructure costs to provide broadband service to a rural area of this state, an
22unserved area, or an area in this state populated primarily by low-income persons,
23if the broadband service is at least 50 megabits per second.
AB359,3,224
3. Twenty percent of the amount the claimant paid in the taxable year for
25infrastructure costs to provide broadband service to an unserved area, if the
1broadband service is at least 5 megabits per second, but less than 50 megabits per
2second.
AB359,3,103
(c)
Limitations. Partnerships, limited liability companies, and tax-option
4corporations may not claim the credit under this subsection, but the eligibility for,
5and the amount of, the credit are based on their payment of amounts under par. (b).
6A partnership, limited liability company, or tax-option corporation shall compute
7the amount of credit that each of its partners, members, or shareholders may claim
8and shall provide that information to each of them. Partners, members of limited
9liability companies, and shareholders of tax-option corporations may claim the
10credit in proportion to their ownership interests.
AB359,3,1211
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
12s. 71.28 (4), applies to the credit under this subsection.
AB359, s. 3
13Section
3. 71.10 (4) (cr) of the statutes is created to read:
AB359,3,1414
71.10
(4) (cr) Broadband service credit under s. 71.07 (5n).
AB359, s. 4
15Section
4. 71.21 (4) of the statutes is amended to read:
AB359,3,1916
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
17(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
18(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), and (8r) and passed
19through to partners shall be added to the partnership's income.
AB359, s. 5
20Section
5. 71.26 (2) (a) 4. of the statutes is amended to read:
AB359,4,221
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
22(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
23(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
(5n), (5k), (5r), (5rm), and (8r)
24and not passed through by a partnership, limited liability company, or tax-option
1corporation that has added that amount to the partnership's, limited liability
2company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB359, s. 6
3Section
6. 71.28 (5n) of the statutes is created to read:
AB359,4,44
71.28
(5n) Broadband service credit. (a)
Definitions. In this subsection:
AB359,4,55
1. "Claimant" means a person who files a claim under this subsection.
AB359,4,86
2. "Low-income persons" means low-income persons, and very low-income
7persons, as determined by the income limits published by the federal department of
8housing and urban development under the National Housing Act of 1937.
AB359,4,109
3. "Unserved area" means an area of this state where broadband service is less
10than 200 kilobits per second.
AB359,4,1311
(b)
Filing claims. Subject to the limitations provided in this subsection, a
12claimant may claim as a credit against the tax imposed under s. 71.23, up to the
13amount of the tax, an amount equal to any of the following:
AB359,4,1714
1. Ten percent of the amount the claimant paid in the taxable year for
15infrastructure costs to provide broadband service to a rural area of this state or an
16area in this state populated primarily by low-income persons, if the broadband
17service is at least 5 megabits per second, but less than 50 megabits per second.
AB359,4,2118
2. Twenty percent of the amount the claimant paid in the taxable year for
19infrastructure costs to provide broadband service to a rural area of this state, an
20unserved area, or an area in this state populated primarily by low-income persons,
21if the broadband service is at least 50 megabits per second.
AB359,4,2522
3. Twenty percent of the amount the claimant paid in the taxable year for
23infrastructure costs to provide broadband service to an unserved area, if the
24broadband service is at least 5 megabits per second, but less than 50 megabits per
25second.
AB359,5,8
1(c)
Limitations. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their payment of amounts under par. (b).
4A partnership, limited liability company, or tax-option corporation shall compute
5the amount of credit that each of its partners, members, or shareholders may claim
6and shall provide that information to each of them. Partners, members of limited
7liability companies, and shareholders of tax-option corporations may claim the
8credit in proportion to their ownership interests.
AB359,5,109
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
AB359, s. 7
11Section
7. 71.30 (3) (cr) of the statutes is created to read:
AB359,5,1212
71.30
(3) (cr) Broadband service credit under s. 71.28 (5n).
AB359, s. 8
13Section
8. 71.34 (1k) (g) of the statutes is amended to read:
AB359,5,1714
71.34
(1k) (g) An addition shall be made for credits computed by a tax-option
15corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
16(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
17(5k),
(5n), (5r), (5rm), and (8r) and passed through to shareholders.
AB359, s. 9
18Section
9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB359,5,2519
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
20computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
21(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), and (8r) and not passed
22through by a partnership, limited liability company, or tax-option corporation that
23has added that amount to the partnership's, limited liability company's, or
24tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
25of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB359, s. 10
1Section
10. 71.47 (5n) of the statutes is created to read:
AB359,6,22
71.47
(5n) Broadband service credit. (a)
Definitions. In this subsection:
AB359,6,33
1. "Claimant" means a person who files a claim under this subsection.
AB359,6,64
2. "Low-income persons" means low-income persons, and very low-income
5persons, as determined by the income limits published by the federal department of
6housing and urban development under the National Housing Act of 1937.
AB359,6,87
3. "Unserved area" means an area of this state where broadband service is less
8than 200 kilobits per second.
AB359,6,119
(b)
Filing claims. Subject to the limitations provided in this subsection, a
10claimant may claim as a credit against the tax imposed under s. 71.43, up to the
11amount of the tax, an amount equal to any of the following:
AB359,6,1512
1. Ten percent of the amount the claimant paid in the taxable year for
13infrastructure costs to provide broadband service to a rural area of this state or an
14area in this state populated primarily by low-income persons, if the broadband
15service is at least 5 megabits per second, but less than 50 megabits per second.
AB359,6,1916
2. Twenty percent of the amount the claimant paid in the taxable year for
17infrastructure costs to provide broadband service to a rural area of this state, an
18unserved area, or an area in this state populated primarily by low-income persons,
19if the broadband service is at least 50 megabits per second.
AB359,6,2320
3. Twenty percent of the amount the claimant paid in the taxable year for
21infrastructure costs to provide broadband service to an unserved area, if the
22broadband service is at least 5 megabits per second, but less than 50 megabits per
23second.
AB359,7,624
(c)
Limitations. Partnerships, limited liability companies, and tax-option
25corporations may not claim the credit under this subsection, but the eligibility for,
1and the amount of, the credit are based on their payment of amounts under par. (b).
2A partnership, limited liability company, or tax-option corporation shall compute
3the amount of credit that each of its partners, members, or shareholders may claim
4and shall provide that information to each of them. Partners, members of limited
5liability companies, and shareholders of tax-option corporations may claim the
6credit in proportion to their ownership interests.
AB359,7,87
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
8s. 71.28 (4), applies to the credit under this subsection.
AB359, s. 11
9Section
11. 71.49 (1) (cr) of the statutes is created to read:
AB359,7,1010
71.49
(1) (cr) Broadband service credit under s. 71.47 (5n).
AB359, s. 12
11Section
12. 77.92 (4) of the statutes is amended to read:
AB359,8,212
77.92
(4) "Net business income," with respect to a partnership, means taxable
13income as calculated under section
703 of the Internal Revenue Code; plus the items
14of income and gain under section
702 of the Internal Revenue Code, including taxable
15state and municipal bond interest and excluding nontaxable interest income or
16dividend income from federal government obligations; minus the items of loss and
17deduction under section
702 of the Internal Revenue Code, except items that are not
18deductible under s. 71.21; plus guaranteed payments to partners under section
707 19(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
20(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
21(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), and
22(8r); and plus or minus, as appropriate, transitional adjustments, depreciation
23differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
24excluding income, gain, loss, and deductions from farming. "Net business income,"
25with respect to a natural person, estate, or trust, means profit from a trade or
1business for federal income tax purposes and includes net income derived as an
2employee as defined in section
3121 (d) (3) of the Internal Revenue Code.