71.07(2dm)(a)4.
4. "Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to the department of commerce or the Wisconsin Economic Development Corporation designating the place where the property is located as a development zone and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section
267 of the Internal Revenue Code, except that section
267 (b) of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50% ownership, the claimant is subject to section
267 (a) (1) of the Internal Revenue Code for purposes of this subsection.
71.07(2dm)(b)
(b) Subject to the limitations provided in this subsection and in
s. 73.03 (35), for any taxable year for which the claimant is certified, a claimant may claim as a credit against the taxes imposed under
s. 71.02 an amount that is equal to 3% of the following:
71.07(2dm)(b)1.
1. The purchase price of depreciable, tangible personal property.
71.07(2dm)(b)2.
2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a development zone.
71.07(2dm)(c)
(c) A claimant may claim the credit under
par. (b) 1., if the tangible personal property is purchased after the claimant is certified and the personal property is used for at least 50% of its use in the claimant's business at a location in a development zone or, if the property is mobile, the property's base of operations for at least 50% of its use is at a location in a development zone.
71.07(2dm)(d)
(d) A claimant may claim the credit under
par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified. In this paragraph, "physical work" does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing the property to prevent deterioration.
71.07(2dm)(e)
(e) A claimant may claim the credit under
par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified.
71.07(2dm)(f)
(f) No credit may be allowed under this subsection unless the claimant includes with the claimant's return:
71.07(2dm)(f)2.
2. A statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the purchase price of the investment and verifying that the investment fulfills the requirements under
par. (b).
71.07(2dm)(g)
(g) In calculating the credit under
par. (b) a claimant shall reduce the amount expended to acquire property by a percentage equal to the percentage of the area of the real property not used for the purposes for which the claimant is certified and shall reduce the amount expended for other purposes by the amount expended on the part of the property not used for the purposes for which the claimant is certified.
71.07(2dm)(hm)
(hm) A claimant may claim the credit under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter.
71.07(2dm)(i)
(i) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and provide that information to its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's, or corporation's business operations in the development zone; except that partners, members, and shareholders in a development zone under s.
238.395 (1) (e) or s.
560.795 (1) (e), 2009 stats., may offset the credit against the amount of the tax attributable to their income.
71.07(2dm)(j)
(j) If a person who is entitled under s.
238.395 (3) (a) 4. or s.
560.795 (3) (a) 4., 2009 stats., to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under
s. 238.395 (5),
238.398 (3), or
238.3995 (4) or s.
560.795 (5), 2009 stats., s.
560.798 (3), 2009 stats., or s.
560.7995 (4), 2009 stats., is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.
71.07(2dm)(k)
(k) If a person who is entitled under s.
238.395 (3) (a) 4. or s.
560.795 (3) (a) 4., 2009 stats., to claim tax benefits or certified under
s. 238.395 (5),
238.398 (3), or
238.3995 (4) or s.
560.795 (5), 2009 stats., s.
560.798 (3), 2009 stats., or s.
560.7995 (4), 2009 stats., ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.
71.07(2dr)
(2dr) Development zones research credit. 71.07(2dr)(a)(a)
Credit. Any person may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the person's qualified research expenses, as defined in section
41 of the internal revenue code, except that "qualified research expenses" include only expenses incurred by the claimant in a development zone under subch.
VI of ch. 560, 2009 stats., except that a taxpayer may elect the alternative computation under section
41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" do not include compensation used in computing the credit under
sub. (2dj) nor research expenses incurred before the claimant is certified for tax benefits under s.
560.765 (3), 2009 stats., the person's base amount, as defined in section
41 (c) of the internal revenue code, in a development zone, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under
s. 71.04 (7) (b) 1. and
2.,
(df) 1. and
2.,
(dh) 1.,
2., and
3.,
(dj) 1. and
(dk) 1. and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under s.
560.765 (3), 2009 stats., in a development zone, if the claimant submits with the claimant's return a copy of the claimant's certification for tax benefits under s.
560.765 (3), 2009 stats., and a statement from the department of commerce verifying the claimant's qualified research expenses for research conducted exclusively in a development zone. The rules under
s. 73.03 (35) apply to the credit under this paragraph. The rules under
sub. (2di) (f) and
(g), as they apply to the credit under that subsection, apply to claims under this paragraph. Section
41 (h) of the internal revenue code does not apply to the credit under this paragraph.
71.07(2dr)(b)
(b)
Development opportunity zones. The development zones research credit under
par. (a), as it applies to a person certified under s.
560.765 (3), 2009 stats., applies to a person that conducts economic activity in a development opportunity zone under s.
560.795 (1), 2009 stats., and that is entitled to tax benefits under s.
560.795 (3), 2009 stats., subject to the limits under s.
560.795 (2), 2009 stats. A development opportunity zone credit under this paragraph may be calculated using expenses incurred by a claimant beginning on the effective date under s.
560.795 (2) (a), 2009 stats., of the development opportunity zone designation of the area in which the claimant conducts economic activity.
71.07(2dr)(bm)
(bm)
Adjustments. Adjustments for acquisitions and dispositions of a major portion of a trade or business shall be made under section
41 of the internal revenue code as limited by this subsection.
71.07(2dr)(c)
(c)
Annualization. In the case of any short taxable year, qualified research expenses shall be annualized as prescribed by the department of revenue.
71.07(2dr)(d)
(d)
Proration. If a portion of qualified research expenses is incurred partly within and partly outside this state and the amount incurred in this state cannot be accurately determined, a portion of the qualified expenses shall be reasonably allocated to this state. Expenses incurred entirely outside this state for the benefit of research in this state are not allocable to this state under this paragraph.
71.07(2dr)(e)
(e)
Change of business or ownership. In the case of a change in ownership or business of a person, section
383 of the internal revenue code, as limited by this subsection, applies to the carry-over of unused credits.
71.07(2dr)(f)
(f)
Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.07(2dr)(g)
(g)
Administration. The department of revenue has full power to administer the credits provided in this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to income and franchise taxes imposed in this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credits under this subsection.
71.07(2dr)(h)
(h)
Timely claim. No credit may be allowed under this subsection unless it is claimed within the period specified in
s. 71.75 (2).
71.07(2dr)(i)
(i)
Sunset. No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.
71.07(2ds)
(2ds) Development zones sales tax credit. 71.07(2ds)(a)2.
2. "Eligible property" means construction materials and supplies and other materials that are used to construct, rehabilitate, repair or remodel real property that is eligible for the credit under
sub. (2dL) and investment credit property.
71.07(2ds)(a)3.
3. "Investment credit property" means depreciable, tangible personal property that is eligible for the credit under
sub. (2di) and leased or rented depreciable, tangible personal property that would be eligible for the credit under
sub. (2di) if it had been purchased.
71.07(2ds)(b)
(b) Except as provided in
pars. (dm) and
(e) and
s. 73.03 (35), for any taxable year for which the person is certified under s.
560.765 (3), 2009 stats., for tax benefits, any person may claim as a credit against taxes otherwise due under this chapter the taxes paid under
subchs. III and
V of ch. 77 on their purchases, leases and rentals of eligible property. Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their partners, members or shareholders. The partnership, limited liability company or corporation shall compute the amount of credit that may be claimed by each of its partners, members or shareholders and shall provide that information to each of its partners, members or shareholders. Partners, members of a limited liability company and shareholders of tax-option corporations may claim the credit based on the partnership's, company's or corporation's activities in proportion to their ownership interest.
71.07(2ds)(d)
(d) No credit may be allowed under this subsection unless the claimant submits with the claimant's return:
71.07(2ds)(d)2.
2. A statement from the department of commerce verifying the amount of taxes paid under
subchs. III and
V of ch. 77 for eligible property by the claimant.
71.07(2ds)(dm)
(dm) In calculating the credit under
par. (b) a claimant shall reduce the sales tax paid for building supplies and materials by the reduction under
sub. (2dL) (bm) and shall reduce the sales tax paid for investment credit property by the percentage reduction under
sub. (2di) (dm).
71.07(2ds)(e)
(e) The rules under
sub. (2di) (f) and
(g) as they apply to the credit under that subsection apply to the credit under this subsection.
71.07(2ds)(h)
(h) The rules under
sub. (2di) (b) and
(c) as they apply to the credit under that subsection apply to the credit under this subsection.
71.07(2ds)(i)
(i) No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.
71.07(2dx)(a)1.
1. "Brownfield" means an industrial or commercial facility the expansion or redevelopment of which is complicated by environmental contamination.
71.07(2dx)(a)3.
3. "Environmental remediation" means removal or containment of environmental pollution, as defined in
s. 299.01 (4), and restoration of soil or groundwater that is affected by environmental pollution, as defined in
s. 299.01 (4), in a brownfield if that removal, containment or restoration fulfills the requirement under
sub. (2de) (a) 1. and investigation unless the investigation determines that remediation is required and that remediation is not undertaken.
71.07(2dx)(a)4.
4. "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 receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
71.07(2dx)(a)5.
5. "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 qualified summer youth employee, as defined in
26 USC 51 (d) (7), 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
sub. (2dj) (am) 3. by a designated local agency, as defined in
sub. (2dj) (am) 2.
71.07(2dx)(b)
(b)
Credit. Except as provided in
pars. (be) and
(bg) and in
s. 73.03 (35), and subject to s.
238.385 or s.
560.785, 2009 stats., for any taxable year for which the person is entitled under s.
238.395 (3) or s.
560.795 (3), 2009 stats., to claim tax benefits or certified under
s. 238.365 (3),
238.397 (4),
238.398 (3), or
238.3995 (4) or s.
560.765 (3), 2009 stats., s.
560.797 (4), 2009 stats., s.
560.798 (3), 2009 stats., or s.
560.7995 (4), 2009 stats., any person may claim as a credit against the taxes otherwise due under this chapter the following amounts:
71.07(2dx)(b)1.
1. Fifty percent of the amount expended for environmental remediation in a development zone.
71.07(2dx)(b)2.
2. The amount determined by multiplying the amount determined under s.
238.385 (1) (b) or s.
560.785 (1) (b), 2009 stats., by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) or the subsidies and reimbursements paid under
s. 49.147 (3m) (c) for those jobs.
71.07(2dx)(b)3.
3. The amount determined by multiplying the amount determined under s.
238.385 (1) (c) or s.
560.785 (1) (c), 2009 stats., by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) or the subsidies and reimbursements paid under
s. 49.147 (3m) (c) for those jobs.
71.07(2dx)(b)4.
4. The amount determined by multiplying the amount determined under s.
238.385 (1) (bm) or s.
560.785 (1) (bm), 2009 stats., by the number of full-time jobs retained, as provided in the rules under s.
238.385 or s.
560.785, 2009 stats., excluding jobs for which a credit has been claimed under
sub. (2dj), in an enterprise development zone under s.
238.397 or s.
560.797, 2009 stats., and for which significant capital investment was made and by then subtracting the subsidies paid under
s. 49.147 (3) (a) or the subsidies and reimbursements paid under
s. 49.147 (3m) (c) for those jobs.
71.07(2dx)(b)5.
5. The amount determined by multiplying the amount determined under s.
238.385 (1) (c) or s.
560.785 (1) (c), 2009 stats., by the number of full-time jobs retained, as provided in the rules under s.
238.385 or s.
560.785, 2009 stats., excluding jobs for which a credit has been claimed under
sub. (2dj), in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) or the subsidies and reimbursements paid under
s. 49.147 (3m) (c) for those jobs.
71.07(2dx)(be)
(be)
Offset. A claimant in a development zone under s.
238.395 (1) (e) or s.
560.795 (1) (e), 2009 stats., may offset any credits claimed under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income and against the tax attributable to income from directly related business operations of the claimant.
71.07(2dx)(bg)
(bg)
Other entities. For claimants in a development zone under s.
238.395 (1) (e) or s.
560.795 (1) (e), 2009 stats., partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income.
71.07(2dx)(c)
(c)
Credit precluded. If the certification of a person for tax benefits under
s. 238.365 (3),
238.397 (4),
238.398 (3), or
238.3995 (4) or s.
560.765 (3), 2009 stats., s.
560.797 (4), 2009 stats., s.
560.798 (3), 2009 stats., or s.
560.7995 (4), 2009 stats., is revoked, or if the person becomes ineligible for tax benefits under s.
238.395 (3) or s.
560.795 (3), 2009 stats., that person 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 person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.
71.07(2dx)(d)
(d)
Carry-over precluded. If a person who is entitled under s.
238.395 (3) or s.
560.795 (3), 2009 stats., to claim tax benefits or certified under
s. 238.365 (3),
238.397 (4),
238.398 (3), or
238.3995 (4) or s.
560.765 (3), 2009 stats., s.
560.797 (4), 2009 stats., s.
560.798 (3), 2009 stats., or s.
560.7995 (4), 2009 stats., for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.
71.07(2dx)(e)
(e)
Administration. Section 71.28 (4) (e) to
(h), as it applies to the credit under
s. 71.28 (4), applies to the credit under this subsection.
Subsection (2dj) (c), as it applies to the credit under
sub. (2dj), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce's verification of their expenses.
71.07(2dy)(a)(a)
Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s.
238.301 (2) or s.
560.701 (2), 2009 stats., and authorized to claim tax benefits under s.
238.303 or s.
560.703, 2009 stats.
71.07(2dy)(b)
(b)
Filing claims. Subject to the limitations under this subsection and ss.
238.301 to
238.306 or ss.
560.701 to
560.706, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08, up to the amount of the tax, the amount authorized for the claimant under s.
238.303 or s.
560.703, 2009 stats.
71.07(2dy)(c)1.1. 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.
238.301 (2) or s.
560.701 (2), 2009 stats., and a copy of the claimant's notice of eligibility to receive tax benefits under s.
238.303 (3) or s.
560.703 (3), 2009 stats.
71.07(2dy)(c)2.
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.
238.303 or s.
560.703, 2009 stats. 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.
71.07(2dy)(d)2.
2. If a claimant's certification is revoked under s.
238.305 or s.
560.705, 2009 stats., or if a claimant becomes ineligible for tax benefits under s.
238.302 or s.
560.702, 2009 stats., 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. 71.02 or
71.08 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.
71.07(3)
(3) Farmland preservation credit. The farmland preservation credit under
subch. IX may be claimed against taxes otherwise due.
71.07(3g)(a)1.
1. The amount of real and personal property taxes imposed under
s. 70.01 that the business paid in the taxable year.
71.07(3g)(a)2.
2. Ten percent of the following amounts of capital investments that are made by the business in the technology zone in the year to which the claim relates:
71.07(3g)(a)2.a.
a. The purchase price of depreciable, tangible personal property.
71.07(3g)(a)2.b.
b. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a technology zone.
71.07(3g)(a)3.
3. Fifteen percent of the amount that is spent for the first 12 months of wages for each job that is created in a technology zone after certification.
71.07(3g)(b)
(b) The department of revenue shall notify the department of commerce or the Wisconsin Economic Development Corporation of all claims under this subsection.
71.07(3g)(d)
(d) 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 payment of amounts under
par. (a). 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 interest.
71.07(3g)(e)1.1. No amount described under
par. (a) 2. may be used in the calculation of a credit under this subsection if that amount is used in the calculation of any other credit under this chapter.
71.07(3g)(e)2.
2. The investments that relate to the amount described under
par. (a) 2. for which a claimant makes a claim under this subsection must be retained for use in the technology zone for the period during which the claimant's business is certified under s.
238.23 (3) or s.
560.96 (3), 2009 stats.
71.07(3g)(f)
(f) No credit may be allowed under this subsection unless the claimant includes with the claimant's return:
71.07(3g)(f)2.
2. A statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the purchase price of the investment described under
par. (a) 2. and verifying that the investment fulfills the requirement under
par. (e) 2.
71.07(3h)
(3h) Biodiesel fuel production credit.
