SB21: Bill Text

SB21,862,8 71.07 (3w) (c) 3. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 235.399 (5) or (5m) or s. 238.399 (5) or (5m), 2013 stats., or s. 560.799 (5) or (5m), 2009 stats.

SB21,2182 Section 2182. 71.07 (3w) (d) of the statutes is amended to read:

SB21,862,15 71.07 (3w) (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), 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 verification of their expenses, from the department of commerce or the Wisconsin Economic Development Corporation or the Forward Wisconsin Development Authority.

SB21,2183 Section 2183. 71.07 (3y) of the statutes is created to read:

SB21,862,17 71.07 (3y) Business development credit. (a) Definitions. In this subsection:

SB21,862,18 1. "Claimant" means a person certified to receive tax benefits under s. 235.308.

SB21,862,19 2. "Eligible position" has the meaning given in s. 235.308 (1) (a).

SB21,862,22 (b) Filing claims. Subject to the limitations provided in this subsection and s. 235.308, for taxable years beginning after December 31, 2015, a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 all of the following:

SB21,862,25 1. The amount of wages that the claimant paid to an employee in an eligible position in the taxable year, not to exceed 10 percent of such wages, as determined by the Forward Wisconsin Development Authority under s. 235.308.

SB21,863,4 2. The amount of wages that the claimant paid to an employee in an eligible position in the taxable year, not to exceed 5 percent of such wages, if the employee is employed in an eligible position at the claimant's business in an economically distressed area, as determined by the Forward Wisconsin Development Authority.

SB21,863,7 3. The amount of training costs that the claimant incurred under s. 235.305 (4) (a) 3., not to exceed 50 percent of such costs, as determined by the Forward Wisconsin Development Authority.

SB21,863,11 4. The amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies s. 235.308 (4) (a) 4., as determined by the Forward Wisconsin Development Authority.

SB21,863,19 (c) Limitations. 1. 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. (b). 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.

SB21,863,22 2. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 235.308.

SB21,863,24 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB21,864,5 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under ss. 71.02 and 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bg).

SB21,2184 Section 2184. 71.07 (4k) (b) 1. of the statutes is amended to read:

SB21,865,2 71.07 (4k) (b) 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 or 71.08, 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 sub. (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.

SB21,2185 Section 2185. 71.07 (4k) (b) 2. of the statutes is amended to read:

SB21,865,24 71.07 (4k) (b) 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 sub. (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.

SB21,2186 Section 2186. 71.07 (4k) (b) 3. of the statutes is amended to read:

SB21,866,22 71.07 (4k) (b) 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 sub. (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.

SB21,2187 Section 2187. 71.07 (5b) (a) 2. of the statutes is amended to read:

SB21,866,25 71.07 (5b) (a) 2. "Fund manager" means an investment fund manager certified under s. 235.15 (2) or s. 238.15 (2), 2013 stats.,   or s. 560.205 (2), 2009 stats.

SB21,2188 Section 2188. 71.07 (5b) (b) 1. of the statutes is amended to read:

SB21,867,8 71.07 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and s. 235.15 or s. 238.15, 2013 stats., or s. 560.205, 2009 stats., and except as provided in subd. 2., a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08, up to the amount of those taxes, 25 percent of the claimant's investment paid to a fund manager that the fund manager invests in a business certified under s. 235.15 or s. 238.15 (1), 2013 stats., or s. 560.205 (1), 2009 stats.

SB21,2189 Section 2189. 71.07 (5b) (b) 2. of the statutes is amended to read:

SB21,867,18 71.07 (5b) (b) 2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity's organizational documents. The entity shall provide to the department of revenue and to the department of commerce or the Wisconsin Economic Development Corporation Forward Wisconsin Development Authority the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.

SB21,2190 Section 2190. 71.07 (5b) (d) 3. of the statutes is amended to read:

SB21,867,24 71.07 (5b) (d) 3. Except as provided under s. 238.15 235.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB21,2191 Section 2191. 71.07 (5d) (a) 1. (intro.) of the statutes is amended to read:

SB21,868,3 71.07 (5d) (a) 1. (intro.) "Bona fide angel investment" means a purchase of an equity interest, or any other expenditure, as determined by rule under s. 238.15 or s. 560.205, 2009 stats., that is made by any of the following:

SB21,2192 Section 2192 . 71.07 (5d) (a) 1. (intro.) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,868,8 71.07 (5d) (a) 1. (intro.) "Bona fide angel investment" means a purchase of an equity interest, or any other expenditure, as determined under s. 235.15 or s. 238.15, 2013 stats., or s. 560.205, 2009 stats., that is made by any of the following:

SB21,2193 Section 2193. 71.07 (5d) (a) 2m. of the statutes is amended to read:

SB21,868,13 71.07 (5d) (a) 2m. "Person" means a partnership or limited liability company that is a nonoperating entity, as determined by the department of commerce or the Wisconsin Economic Development Corporation Forward Wisconsin Development Authority, a natural person, or fiduciary.

SB21,2194 Section 2194. 71.07 (5d) (a) 3. of the statutes is amended to read:

SB21,868,16 71.07 (5d) (a) 3. "Qualified new business venture" means a business that is certified under s. 235.15 (1) or s. 238.15 (1), 2013 stats., or s. 560.205 (1), 2009 stats.

SB21,2195 Section 2195. 71.07 (5d) (b) (intro.) of the statutes is amended to read:

SB21,868,21 71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection and in s. 235.15 or s. 238.15, 2013 stats., or s. 560.205, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of those taxes, the following:

SB21,2196 Section 2196. 71.07 (5d) (b) 1. of the statutes is amended to read:

SB21,869,3 71.07 (5d) (b) 1. For taxable years beginning before January 1, 2008, in each taxable year for 2 consecutive years, beginning with the taxable year as certified by the department of commerce or, the Wisconsin Economic Development Corporation, or the Forward Wisconsin Development Authority, an amount equal to 12.5 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

SB21,2197 Section 2197. 71.07 (5d) (b) 2. of the statutes is amended to read:

SB21,869,9 71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, for the taxable year certified by the department of commerce or , the Wisconsin Economic Development Corporation, or the Forward Wisconsin Development Authority, an amount equal to 25 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

SB21,2198 Section 2198. 71.07 (5d) (c) 2. of the statutes is amended to read:

SB21,869,15 71.07 (5d) (c) 2. For taxable years beginning before January 1, 2008, the maximum amount of a claimant's investment that may be used as the basis for a credit under this subsection is $2,000,000 for each investment made directly in a business certified under s. 235.15 (1) or s. 238.15 (1), 2013 stats., or s. 560.205 (1), 2009 stats.

SB21,2199 Section 2199. 71.07 (5d) (d) 1. of the statutes is amended to read:

SB21,869,21 71.07 (5d) (d) 1. Except as provided under s. 238.15 235.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB21,2200 Section 2200. 71.07 (5j) (a) 2d. of the statutes is amended to read:

SB21,870,3 71.07 (5j) (a) 2d. "Diesel replacement renewable fuel" includes biodiesel and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce or the department of safety and professional services financial institutions and professional standards designates by rule as a diesel replacement renewable fuel.

SB21,2201 Section 2201. 71.07 (5j) (a) 2m. of the statutes is amended to read:

SB21,870,10 71.07 (5j) (a) 2m. "Gasoline replacement renewable fuel" includes ethanol and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce or the department of safety and professional services financial institutions and professional standards designates by rule as a gasoline replacement renewable fuel.

SB21,2202 Section 2202. 71.07 (5j) (c) 3. of the statutes is amended to read:

SB21,870,17 71.07 (5j) (c) 3. The department of commerce or the department of safety and professional services financial institutions and professional standards shall establish standards to adequately prevent, in the distribution of conventional fuel to an end user, the inadvertent distribution of fuel containing a higher percentage of renewable fuel than the maximum percentage established by the federal environmental protection agency for use in conventionally-fueled engines.

SB21,2203 Section 2203. 71.07 (5n) (a) 1. a. of the statutes is amended to read:

SB21,871,2 71.07 (5n) (a) 1. a. "Agriculture property factor" means a fraction, the numerator of which is the average value of the claimant's real property and improvements assessed under s. 70.32 (2) (a) 4. to 7., owned or rented and used in this state by the claimant during the taxable year to produce, grow, or extract qualified production property, and the denominator of which is the average value of all of the claimant's real property and improvements owned or rented during the taxable year and used by the claimant to produce, grow, or extract qualified production property.

SB21,2204 Section 2204. 71.07 (5n) (a) 3. of the statutes is amended to read:

SB21,871,8 71.07 (5n) (a) 3. "Direct costs" includes all of the claimant's ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under section 162 of the Internal Revenue Code and identified as direct costs in the claimant's managerial or cost accounting records.

SB21,2205 Section 2205. 71.07 (5n) (a) 4. of the statutes is amended to read:

SB21,871,14 71.07 (5n) (a) 4. "Indirect costs" includes all of the claimant's ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under section 162 of the Internal Revenue Code, other than cost of goods sold and direct costs, and identified as indirect costs in the claimant's managerial or cost accounting records.

SB21,2206 Section 2206. 71.07 (5n) (a) 5. d. of the statutes is created to read:

SB21,871,20 71.07 (5n) (a) 5. d. For purposes of subd. 5. a., a claimant who the department approves to be classified as a manufacturer for purposes of s. 70.995, but who is not eligible to be listed on the department's manufacturing roll until January 1 of the following year, may claim the credit in the year in which the manufacturing classification is approved.

SB21,2207 Section 2207. 71.07 (5r) (a) 2. of the statutes is amended to read:

SB21,871,23 71.07 (5r) (a) 2. "Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).

SB21,2208 Section 2208. 71.07 (5r) (a) 6. b. of the statutes is amended to read:

SB21,872,2 71.07 (5r) (a) 6. b. A school approved authorized under s. 38.50 440.52, if the delivery of education occurs in this state.

SB21,2209 Section 2209. 71.07 (9m) (a) 3. of the statutes is amended to read:

SB21,872,18 71.07 (9m) (a) 3. For Except as provided in par. (k), for taxable years beginning after December 31, 2013, and before January 1, 2015, any person may claim as a credit against taxes otherwise due under s. 71.02 or 71.08, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and before January 1, 2015, and regardless of whether the rehabilitated property is used for multiple or revenue-producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.

SB21,2210 Section 2210. 71.07 (9m) (c) (intro.) of the statutes is amended to read:

SB21,872,24 71.07 (9m) (c) (intro.) No person may claim the credit under par. (a) 2m. unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 238.17 235.17. For certification purposes under s. 238.17 235.17, the claimant shall provide to the Wisconsin Economic Development Corporation Forward Wisconsin Development Authority all of the following:

SB21,2211 Section 2211. 71.07 (9m) (i) of the statutes is created to read:

SB21,873,6 71.07 (9m) (i) 1. a. Except as provided in subd. 1. b., if the activity for which a person claims a credit under this subsection creates fewer full-time jobs than projected under s. 235.17 (3) (a), as reported to the department under s. 235.17 (4), the person who claimed the credit shall repay to the department any amount of the credit claimed, as determined by the department, in proportion to the number of full-time jobs created compared to the number of full-time jobs projected.

SB21,873,8 b. For purposes of subd. 1. a., the person who initially sells or transfers a credit under par. (h) is responsible for repaying the credit.

SB21,873,13 2. If a person who claims a credit under this subsection and a credit under section 47 of the Internal Revenue Code for the same qualified rehabilitation expenditures is required to repay the full amount of the credit claimed under section 47 of the Internal Revenue Code, the person shall repay to the department the amount of the credit claimed under this subsection.

SB21,2212 Section 2212. 71.07 (9m) (k) of the statutes is created to read:

SB21,873,18 71.07 (9m) (k) A person who has incurred qualified rehabilitation expenditures under par. (a) 3. before January 1, 2015, may claim the credit under par. (a) 3. for taxable years beginning after December 31, 2014, even if the property is not placed in service until after December 31, 2014.

SB21,2213 Section 2213. 71.08 (1) (intro.) of the statutes is amended to read:

SB21,874,4 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8r), (9e), (9m), and (9r), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

SB21,2214 Section 2214. 71.10 (4) (gd) of the statutes is repealed.

SB21,2215 Section 2215. 71.10 (4) (ge) of the statutes is repealed.

SB21,2216 Section 2216. 71.10 (4) (gg) of the statutes is repealed.

SB21,2217 Section 2217. 71.10 (4) (gm) of the statutes is repealed.

SB21,2218 Section 2218. 71.10 (4) (gn) of the statutes is repealed.

SB21,2219 Section 2219. 71.10 (4) (gr) of the statutes is repealed.

SB21,2220 Section 2220. 71.10 (4) (gs) of the statutes is repealed.

SB21,2221 Section 2221. 71.10 (4) (gt) of the statutes is repealed.