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6. "Production gross receipts" means gross receipts from the lease, rental,
5license, sale, exchange, or other disposition of qualified production property.
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7. "Production gross receipts factor" means a fraction, the numerator of which
7is production gross receipts and the denominator of which is all gross income from
8whatever source, except for those items specifically excluded under the Internal
9Revenue Code as adopted by this state and otherwise excluded under Wisconsin law.
10For purposes of the denominator, income includes gross sales, gross dividends, gross
11interest income, gross rents, gross royalties, the gross sales price from the disposition
12of capital assets and business assets, gross income from pass-through entities, and
13all other gross receipts that are included in income, before apportionment for
14Wisconsin tax purposes under s. 71.25 (6).
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8. "Qualified production activities income" means the amount of the claimant's
16production gross receipts for the taxable year that exceeds the sum of the cost of goods
17sold that are allocable to such receipts, the direct costs that are allocable to such
18receipts, and the indirect costs multiplied by the production gross receipts factor.
19"Qualified production activities income" does not include any of the following:
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a. Income from film production.
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b. Income from producing, transmitting, or distributing electricity, natural gas,
22or potable water.
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c. Income from constructing real property.
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d. Income from engineering or architectural services performed with respect
25to constructing real property.
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1e. Income from the sale of food and beverages prepared by the claimant at a
2retail establishment.
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f. Income from the lease, rental, license, sale, exchange, or other disposition of
4land.
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9. "Qualified production property" means either of the following:
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a. Tangible personal property manufactured in whole or in part by the claimant
7on property that is assessed as manufacturing property under s. 70.995.
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b. Tangible personal property produced, grown, or extracted in whole or in part
9by the claimant on or from property assessed as agricultural property under s. 70.32
10(2) (a) 4.
SB526, s. 15
13Section
15. 71.28 (5n) (d) 2. of the statutes is created to read:
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71.28
(5n) (d) 2. Except as provided in subd. 3., for purposes of determining a
15claimant's eligible qualified production activities income under this subsection, the
16claimant shall multiply the claimant's qualified production activities income from
17property manufactured by the claimant by the manufacturing property factor and
18qualified production activities income from property produced, grown, or extracted
19by the claimant by the agriculture property factor.
SB526, s. 16
20Section
16. 71.28 (5n) (d) 3. of the statutes is created to read:
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71.28
(5n) (d) 3. The amount of the eligible qualified production activities
22income that a claimant may claim in computing the credit under par. (b) is the lesser
23of the following:
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a. The eligible qualified production activities income determined under subd.
252.
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1b. Income apportioned to this state under s. 71.25 (5), (6), and (6m).
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c. Income determined to be taxable under s. 71.255 (2).
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71.30
(3) (dn)
Qualified production activities Manufacturing and agriculture 6credit under s. 71.28 (5n).
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71.34
(1k) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
11(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
12(5k),
(5n), (5r), (5rm), and (8r) and passed through to shareholders.
SB526, s. 19
13Section
19. 71.34 (1k) (m) of the statutes is created to read:
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71.34
(1k) (m) An addition shall be made for the amount computed under s.
1571.28 (5n) in the previous taxable year that is not included in federal ordinary
16business income.
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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), (8r), and (9s) 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).