Amendment ASA1-AB40

AB40-ASA1,729,23 3. "Vehicle" means any vehicle or frame, including parts, accessories, and component technologies, in which or on which an engine is mounted for use in mobile or stationary applications. "Vehicle" includes any truck, tractor, motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction equipment, lawn and garden maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.

AB40-ASA1,730,17 (b) Credit. 1. Subject to the limitations provided in this subsection, and except as provided in subds. 2. and 3., for taxable years beginning after December 31, 2012, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 5 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year, 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, except as provided in par. (c), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (2dj) and (2dx), the entity's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under ss. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

AB40-ASA1,731,13 2. For taxable years beginning after December 31, 2012, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 10 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year, 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, except as provided in par. (c), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (2dj) and (2dx), the entity's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under ss. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

AB40-ASA1,732,9 3. For taxable years beginning after December 31, 2012, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 10 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year, 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, except as provided in par. (c), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (2dj) and (2dx), the entity's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under ss. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

AB40-ASA1,732,13 (c) Computation. If in any taxable year a person claims a credit under par. (b) 1., 2., or 3., or any combination of those credits, the person may use a different computation method to calculate each of the credits and may choose to change the computation method once for each credit without the department's approval.

AB40-ASA1,732,21 (d) Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.

AB40-ASA1,732,23 (e) Administration. Section 71.28 (4) (b) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.

AB40-ASA1,1343c Section 1343c. 71.07 (4n) of the statutes is created to read:

AB40-ASA1,732,25 71.07 (4n) Research facilities credit. (a) Definitions. In this subsection:

AB40-ASA1,733,1 1. "Frame" includes:

AB40-ASA1,733,2 a. Every part of a motorcycle, except the tires.

AB40-ASA1,733,4 b. In the case of a truck, the control system and the fuel and drive train, excluding any comfort features located in the cab or the tires.

AB40-ASA1,733,7 c. In the case of a generator, the control modules, fuel train, fuel scrubbing process, fuel mixers, generator, heat exchangers, exhaust train, and similar components.

AB40-ASA1,733,9 2. "Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.

AB40-ASA1,733,15 3. "Vehicle" means any vehicle or frame, including parts, accessories, and component technologies, in which or on which an engine is mounted for use in mobile or stationary applications. "Vehicle" includes any truck, tractor, motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction equipment, lawn and garden maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.

AB40-ASA1,734,2 (b) Credit. 1. Subject to the limitations provided in this subsection, and except as provided in subds. 2. and 3., for taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (c), an amount equal to 5 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.

AB40-ASA1,734,17 2. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses paid or incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.

AB40-ASA1,735,8 3. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses paid or incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.

AB40-ASA1,735,16 (c) Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.

AB40-ASA1,735,18 (d) Administration. Section 71.28 (4) (b) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.

AB40-ASA1,735,22 (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

AB40-ASA1,1344 Section 1344. 71.07 (5d) (c) 1. of the statutes is repealed.

AB40-ASA1,1344b Section 1344b. 71.07 (5e) (d) of the statutes is renumbered 71.07 (5e) (d) 1.

AB40-ASA1,1344c Section 1344c. 71.07 (5e) (d) 2. of the statutes is created to read:

AB40-ASA1,736,4 71.07 (5e) (d) 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

AB40-ASA1,1344d Section 1344d. 71.07 (5f) (d) 3. of the statutes is created to read:

AB40-ASA1,736,7 71.07 (5f) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013.

AB40-ASA1,1344df Section 1344df. 71.07 (5g) (a) of the statutes is amended to read:

AB40-ASA1,736,12 71.07 (5g) (a) Definitions. In this subsection, "claimant" means a partner, limited liability company member, or tax-option corporation shareholder who files a claim under this subsection and who is a partner, member, or shareholder of an entity that is an insurer, as defined in s. 149.10 (5), 2011 stats.

AB40-ASA1,1344dh Section 1344dh. 71.07 (5g) (b) of the statutes is amended to read:

AB40-ASA1,736,19 71.07 (5g) (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, and before January 1, 2014, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to the amount of the assessment under s. 149.13 , 2011 stats., that the claimant paid in the claimant's taxable year, multiplied by the percentage determined under par. (c) 1.

AB40-ASA1,1344e Section 1344e. 71.07 (5g) (c) 1. of the statutes is amended to read:

AB40-ASA1,737,5 71.07 (5g) (c) 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year. The percentage shall be equal to $5,000,000 divided by the aggregate assessment under s. 149.13, 2011 stats. The office of the commissioner of insurance shall provide to each claimant that participates in the cost of administering the plan the aggregate assessment at the time that it notifies the claimant of the claimant's assessment. The aggregate amount of the credit under this subsection and ss. 71.28 (5g), 71.47 (5g), and 76.655 for all claimants participating in the cost of administering the plan under ch. 149, 2011 stats., shall not exceed $5,000,000 in each fiscal year.

AB40-ASA1,1344em Section 1344em. 71.07 (5g) (d) of the statutes is renumbered 71.07 (5g) (d) 1.

AB40-ASA1,1344f Section 1344f. 71.07 (5g) (d) 2. of the statutes is created to read:

AB40-ASA1,737,11 71.07 (5g) (d) 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

AB40-ASA1,1344g Section 1344g. 71.07 (5h) (d) 3. of the statutes is created to read:

AB40-ASA1,737,14 71.07 (5h) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013.

AB40-ASA1,1345 Section 1345. 71.07 (5i) (b) of the statutes is amended to read:

AB40-ASA1,737,22 71.07 (5i) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, and before January 1, 2014, a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1) (a) to (p).

AB40-ASA1,1345b Section 1345b. 71.07 (5j) (b) of the statutes is amended to read:

AB40-ASA1,738,8 71.07 (5j) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2018 2014, a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of the taxes, an amount that is equal to 25 percent of the amount that the claimant paid in the taxable year to install or retrofit pumps located in this state that dispense motor vehicle fuel marketed as gasoline and 85 percent ethanol or a higher percentage of ethanol or motor vehicle fuel marketed as diesel fuel and 20 percent biodiesel fuel or that mix fuels from separate storage tanks and allow the end user to choose the percentage of gasoline replacement renewable fuel or diesel replacement renewable fuel in the motor vehicle fuel dispensed.

AB40-ASA1,1345d Section 1345d. 71.07 (5j) (d) of the statutes is renumbered 71.07 (5j) (d) 1.

AB40-ASA1,1345e Section 1345e. 71.07 (5j) (d) 2. of the statutes is created to read:

AB40-ASA1,738,14 71.07 (5j) (d) 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

AB40-ASA1,1345g Section 1345g. 71.07 (5n) (a) 8. g. of the statutes is created to read:

AB40-ASA1,738,17 71.07 (5n) (a) 8. g. Income from aging natural cheese on behalf of others, as described under s. 70.995 (3) (b).

AB40-ASA1,1345h Section 1345h. 71.07 (5n) (a) 9. a. of the statutes is amended to read:

AB40-ASA1,738,22 71.07 (5n) (a) 9. a. Tangible personal property manufactured in whole or in part by the claimant on property that is assessed as manufacturing property under s. 70.995, not including natural cheese aged on behalf of others, as described under s. 70.995 (3) (b).

AB40-ASA1,1345hf Section 1345hf. 71.07 (5n) (c) of the statutes is renumbered 71.07 (5n) (c) 1.

AB40-ASA1,1345hm Section 1345hm. 71.07 (5n) (c) 2. of the statutes is created to read:

AB40-ASA1,739,3 71.07 (5n) (c) 2. The credit under par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant on which the credit is computed.

AB40-ASA1,1345i Section 1345i. 71.07 (5n) (c) 3. of the statutes is created to read:

AB40-ASA1,739,7 71.07 (5n) (c) 3. For shareholders of a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.

AB40-ASA1,1345j Section 1345j. 71.07 (5n) (c) 4. of the statutes is created to read:

AB40-ASA1,739,10 71.07 (5n) (c) 4. For partners of a partnership, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.

AB40-ASA1,1345k Section 1345k. 71.07 (5n) (c) 5. of the statutes is created to read:

AB40-ASA1,739,14 71.07 (5n) (c) 5. For members of a limited liability company, the credit may be offset only against the tax imposed on the member's distributive share of the limited liability company's income.

AB40-ASA1,1347b Section 1347b. 71.07 (5r) (d) of the statutes is renumbered 71.07 (5r) (d) 1.

AB40-ASA1,1347c Section 1347c. 71.07 (5r) (d) 2. of the statutes is created to read:

AB40-ASA1,739,20 71.07 (5r) (d) 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

AB40-ASA1,1347d Section 1347d. 71.07 (5rm) (b) (intro.) of the statutes is amended to read:

AB40-ASA1,740,2 71.07 (5rm) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009, and before January 1, 2020 2014, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, the amount determined as follows, except that the maximum amount that a claimant may claim in a taxable year under this subsection is $300,000:

AB40-ASA1,1347e Section 1347e. 71.07 (5rm) (d) of the statutes is renumbered 71.07 (5rm) (d) 1.

AB40-ASA1,1347f Section 1347f. 71.07 (5rm) (d) 2. of the statutes is created to read:

AB40-ASA1,740,9 71.07 (5rm) (d) 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

AB40-ASA1,1348 Section 1348. 71.07 (6e) (a) 2. d. of the statutes is created to read:

AB40-ASA1,740,18 71.07 (6e) (a) 2. d. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and following the individual's death, his or her spouse began to receive, and continues to receive, dependency and indemnity compensation, as defined in 38 USC 101 (14).

AB40-ASA1,1348b Section 1348b. 71.07 (6e) (b) of the statutes is amended to read:

AB40-ASA1,741,2 71.07 (6e) (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 the an amount of the claimant's property taxes equal to all or part of the claimant's property taxes, as calculated under par. (bm). If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).

AB40-ASA1,1348be Section 1348be. 71.07 (6e) (bm) of the statutes is created to read:

AB40-ASA1,741,6 71.07 (6e) (bm) Calculation. 1. If the claimant is single and his or her adjusted gross income is less than $50,000 in the year to which the claim relates, the amount of the claimant's property taxes.

AB40-ASA1,741,9 2. If the claimant is single and his or her adjusted gross income is at least $50,000 but less than $100,000 in the year to which the claim relates, an amount that is calculated as follows:

AB40-ASA1,741,12 a. Calculate the value of a fraction, the denominator of which is $50,000 and the numerator of which is the difference between the claimant's adjusted gross income and $50,000.

AB40-ASA1,741,13 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

AB40-ASA1,741,15 c. Multiply the amount of the claimant's property taxes by the amount that is calculated under subd. 2. b.

AB40-ASA1,741,18 3. If the claimant is filing as a head of household and his or her adjusted gross income is less than $60,000 in the year to which the claim relates, the amount of the claimant's property taxes.

AB40-ASA1,741,21 4. If the claimant is filing as a head of household and his or her adjusted gross income is at least $60,000 but less than $120,000 in the year to which the claim relates, an amount that is calculated as follows:

AB40-ASA1,741,24 a. Calculate the value of a fraction, the denominator of which is $60,000 and the numerator of which is the difference between the claimant's adjusted gross income and $60,000.

AB40-ASA1,741,25 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB40-ASA1,742,2 c. Multiply the amount of the claimant's property taxes by the amount that is calculated under subd. 4. b.

AB40-ASA1,742,6 5. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is less than $75,000 in the year to which the claim relates, the amount of the claimant's property taxes.

AB40-ASA1,742,10 6. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is at least $75,000 but less than $150,000 in the year to which the claim relates, an amount that is calculated as follows:

AB40-ASA1,742,13 a. Calculate the value of a fraction, the denominator of which is $75,000 and the numerator of which is the difference between the claimant's adjusted gross income and $75,000.

AB40-ASA1,742,14 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

AB40-ASA1,742,16 c. Multiply the amount of the claimant's property taxes by the amount that is calculated under subd. 6. b.

AB40-ASA1,742,19 7. If the claimant is married and filing separately and his or her adjusted gross income is less than $37,500 in the year to which the claim relates, the amount of the claimant's property taxes.

AB40-ASA1,742,22 8. If the claimant is married and filing separately and his or her adjusted gross income is at least $37,500 but less than $75,000 in the year to which the claim relates, an amount that is calculated as follows:

AB40-ASA1,742,25 a. Calculate the value of a fraction, the denominator of which is $37,500 and the numerator of which is the difference between the claimant's adjusted gross income and $37,500.