71.07 (4k) (b) 4. a. Except as provided in subds. 5. and 6., for taxable years beginning after December 31, 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 or 71.08, as allocated under par. (d), an amount equal to 5.75 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 2.875 percent of the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
59,1038p
Section 1038p. 71.07 (4k) (b) 5. a. of the statutes is amended to read:
71.07 (4k) (b) 5. a. For taxable years beginning after December 31, 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 or 71.08, as allocated under par. (d), an amount equal to 11.5 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
59,1038r
Section 1038r. 71.07 (4k) (b) 6. a. of the statutes is amended to read:
71.07 (4k) (b) 6. a. For taxable years beginning after December 31, 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 or 71.08, as allocated under par. (d), an amount equal to 11.5 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
59,1038s
Section 1038s. 71.07 (4k) (e) of the statutes is renumbered 71.07 (4k) (e) 1. and amended to read:
71.07 (4k) (e) 1. Section
For taxable years beginning before January 1, 2018, s. 71.28 (4) (b) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.
59,1038t
Section 1038t. 71.07 (4k) (e) 2. of the statutes is created to read:
71.07 (4k) (e) 2. For taxable years beginning after December 31, 2017, s. 71.28 (4) (b) to (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection. For taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (b) 4., 5., or 6. exceeds the tax otherwise due under s. 71.02 or 71.08, all of the following apply:
a. The amount of the claim not used to offset the tax due, not to exceed 10 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., 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) (d).
b. The amount of the claim not used to offset the tax due and not certified for payment under subd. 2. a. may be carried forward and credited against Wisconsin income 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.
59,1039
Section 1039
. 71.07 (5) (b) of the statutes is amended to read:
71.07 (5) (b) Subtract the standard deduction under s. 71.05 (22), notwithstanding the limitation by such fraction of that amount as Wisconsin adjusted gross income is of federal adjusted gross income described in s. 71.05 (22) (g) and (h), from the amount under par. (a).
59,1040e
Section 1040e. 71.07 (5b) (b) 1. of the statutes is amended to read:
71.07 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and s. 238.15 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.
s. 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. 238.15 (1) or s. 560.205 (1), 2009 stats.
59,1040g
Section 1040g. 71.07 (5b) (d) 3. of the statutes is amended to read:
71.07 (5b) (d) 3. Except as provided under s. 238.15 (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.
59,1040h
Section 1040h. 71.07 (5d) (b) (intro.) of the statutes is amended to read:
71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection and in s. 238.15 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:
59,1040p
Section 1040p. 71.07 (5d) (d) 1. of the statutes is amended to read:
71.07 (5d) (d) 1. Except as provided under s. 238.15 (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.
59,1041e
Section 1041e. 71.07 (5m) (e) of the statutes is created to read:
71.07 (5m) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2016.
59,1041s
Section 1041s. 71.07 (5n) (b) (intro.) of the statutes is amended to read:
71.07 (5n) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under ss.
s. 71.02 and 71.08, up to the amount of the tax, an amount equal to one of the following percentages of the claimant's eligible qualified production activities income in the taxable year:
59,1042
Section 1042
. 71.07 (5n) (d) 3. of the statutes is created to read:
71.07 (5n) (d) 3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par. (b) shall be reduced by the amount of the qualified production activities income taxed by another state upon which the credit under sub. (7) is claimed.
59,1043
Section 1043
. 71.07 (5r) (a) 2. of the statutes is amended to read:
71.07 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).
59,1044
Section 1044
. 71.07 (5r) (a) 6. b. of the statutes is amended to read:
71.07 (5r) (a) 6. b. A school approved under s.
38.50 440.52, if the delivery of education occurs in this state.
59,1044p
Section 1044p. 71.07 (7) (a) of the statutes is renumbered 71.07 (7) (a) (intro.) and amended to read:
71.07 (7) (a) (intro.) In this subsection, “
state":
2. “State” includes the District of Columbia, but does not include the commonwealth of Puerto Rico or the several territories organized by Congress.
59,1044r
Section 1044r. 71.07 (7) (a) 1. of the statutes is created to read:
71.07 (7) (a) 1. “Net Wisconsin income tax” means the gross Wisconsin income tax less all nonrefundable credits that may be claimed by that taxpayer, except the credit for taxes paid to other states.
59,1044t
Section 1044t. 71.07 (7) (b) of the statutes is amended to read:
71.07 (7) (b) If Subject to conditions and limitations in pars. (c) and (d), if a resident individual, estate or trust pays a net income tax to another state, that resident individual, estate or trust may credit the net tax paid to that other state on that income against the net income tax otherwise payable to the state on income of the same year. The credit may not be allowed unless the income taxed by the other state is also considered income for Wisconsin tax purposes. The credit may not be allowed unless claimed within the time provided in s. 71.75 (2), but s. 71.75 (4) does not apply to those credits. For purposes of this paragraph, amounts declared and paid under the income tax law of another state are considered a net income tax paid to that other state only in the year in which the income tax return for that state was required to be filed. Income and franchise taxes paid to another state by a tax-option corporation, partnership, or limited liability company that is treated as a partnership may be claimed as a credit under this paragraph by that corporation's shareholders, that partnership's partners, or that limited liability company's members who are residents of this state and who otherwise qualify under this paragraph.
59,1044u
Section 1044u. 71.07 (7) (c) and (d) of the statutes are created to read:
71.07 (7) (c) The credit may not exceed an amount determined by multiplying the taxpayer's net Wisconsin income tax by a ratio derived by dividing the income subject to tax in the other state that is also subject to tax in Wisconsin while the taxpayer is a resident of Wisconsin, by the taxpayer's Wisconsin adjusted gross income.
(d) The limitation in par. (c) does not apply to income that is taxed by one of the 4 states that border this state.
59,1050p
Section 1050p. 71.07 (9m) (a) 2m. of the statutes is amended to read:
71.07
(9m) (a) 2m. For taxable years beginning after December 31, 2013, 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 certified historic structures 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.
59,1050r
Section 1050r. 71.07 (9m) (a) 3. of the statutes is amended to read:
71.07
(9m) (a) 3. For taxable years beginning after December 31, 2013, 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 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.
59,1050u
Section 1050u. 71.07 (9m) (h) of the statutes is amended to read:
71.07
(9m) (h) Any person, including a nonprofit entity described in section
501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02,
71.08, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer.
59,1051
Section 1051
. 71.07 (9m) (i) of the statutes is created to read:
71.07
(9m) (i) 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 any amount of the credit claimed under section
47 of the Internal Revenue Code, the person shall repay to the department a proportionate amount of the credit claimed under this subsection.
59,1051g
Section 1051g. 71.07 (9r) (a) of the statutes is amended to read:
71.07 (9r) (a) For taxable years beginning on or after August 1, 1988, any natural person may credit against taxes otherwise due under s. 71.02 or 71.08 an amount equal to 25 percent of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.
59,1052e
Section 1052e. 71.08 (5) of the statutes is created to read:
71.08 (5) Sunset. This section does not apply to taxable years beginning after December 31
, 2016 .
59,1052k
Section 1052k. 71.09 (1) (b) of the statutes is amended to read:
71.09 (1) (b) “Tax shown on the return" and “tax for the taxable year" mean the net tax imposed under s. 71.02 after reduction for exemptions to, and credits against, that tax but before reduction by amounts withheld under subch. X and before reduction for amounts paid as estimated tax under this section for that tax plus the tax imposed under s. 71.08 before reduction for amounts paid as estimated tax under this section for that tax plus the surcharge imposed under s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
59,1052L
Section 1052L. 71.09 (2) of the statutes is amended to read:
71.09
(2) Who shall pay. Every individual, estate and trust deriving income subject to taxation under this chapter, other than wages as defined in s. 71.63 (6) upon which taxes are withheld by the individual's employer under subch. X, shall pay estimated income tax
,
and the surcharge under s. 77.93
and alternative minimum tax. This section does not apply to any person on active duty with the U.S. armed forces while stationed outside the continental United States. This section does not apply to any taxable year ending before the date 2 years after the date of a decedent's death with respect to the estate of such decedent or any trust all of which is treated under subpart E of part I of subchapter J of chapter 1 of the internal revenue code as owned by the decedent and to which the residue of the decedent's estate will pass under his or her will. This section does not apply to any trust that is subject to tax under this chapter on unrelated business taxable income as defined under section
512 of the internal revenue code. Those trusts are subject to estimated tax payments under s. 71.29.
59,1052p
Section 1052p. 71.09 (11) (b) of the statutes is amended to read:
71.09 (11) (b) The preceding taxable year was 12 months, the taxpayer had no liability under s. 71.02 or 71.08 for that year and the taxpayer was a resident of this state for all of that year.
59,1052u
Section 1052u. 71.10 (4) (f) of the statutes is amended to read:
71.10 (4) (f) Alternative
For taxable years beginning before January 1, 2017, alternative minimum tax under s. 71.08, including any surtax on alternative minimum tax.
59,1052w
Section 1052w. 71.10 (4) (fr) of the statutes is amended to read:
71.10 (4) (fr) Research credit under s. 71.07 (4k)
, except as provided under par. (i).
59,1052y
Section 1052y. 71.10 (4) (i) of the statutes is amended to read:
71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.
59,1057d
Section 1057d. 71.22 (1e) of the statutes is created to read:
71.22 (1e) “Broadcaster" means a television or radio station licensed by the federal communications commission, a television or radio broadcast network, a cable television network, or a television distribution company. “Broadcaster" does not include a cable service provider, a direct broadcast satellite system, or an Internet content distributor.
59,1058
Section 1058
. 71.22 (4) (b) of the statutes is repealed.
59,1059
Section 1059
. 71.22 (4) (j) 1. of the statutes is amended to read:
71.22 (4) (j) 1. For taxable years beginning after December 31, 2013, and before January 1, 2017, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2013, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), and 71.42 (2).
59,1060
Section 1060
. 71.22 (4) (j) 3. i. of the statutes is created to read:
71.22
(4) (j) 3. i. Section 2004 of P.L.
114-41.
59,1061
Section 1061
. 71.22 (4) (j) 3. j. of the statutes is created to read:
71.22
(4) (j) 3. j. Sections 503 and 504 of P.L.
114-74.
59,1062
Section 1062
. 71.22 (4) (j) 3. k. of the statutes is created to read:
71.22
(4) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L.
114-113.
59,1063
Section 1063
. 71.22 (4) (j) 3. L. of the statutes is created to read:
71.22
(4) (j) 3. L. P.L.
114-239.
59,1064
Section 1064
. 71.22 (4) (k) of the statutes is created to read:
71.22 (4) (k) 1. For taxable years beginning after December 31, 2016, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.
2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2016: section 13113 of P.L
103-66; sections 1, 3, 4, and 5 of P.L.
106-519; sections 101, 102, and 422 of P.L
108-357; sections 1310 and 1351 of P.L.
109-58; section 11146 of P.L.
109-59; section 403 (q) of P.L.
109-135; section 513 of P.L.
109-222; sections 104 and 307 of P.L.
109-432; sections 8233 and 8235 of P.L.
110-28; section 11 (e) and (g) of P.L.
110-172; section 301 of P.L.
110-245; section 15351 of P.L.
110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L.
110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L.
111-5; sections 211, 212, 213, 214, and 216 of P.L.
111-226; sections 2011 and 2122 of P.L.
111-240; sections 753, 754, and 760 of P.L.
111-312; section 1106 of P.L.
112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L.
112-240; P.L.
114-7; section 1101 of P.L.
114-74; section 305 of division P of P.L.
114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L.
114-113.
3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016.
4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by section 4007 (b) of P.L.
114-41, section 1102 of P.L.
114-74, sections 105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343 to 345 of division Q of P.L.
114-113 first apply for taxable years beginning after December 31, 2016.
59,1065
Section 1065
. 71.22 (4m) (b) of the statutes is repealed.
59,1066
Section 1066
. 71.22 (4m) (j) 1. of the statutes is amended to read:
71.22 (4m) (j) 1. For taxable years beginning after December 31, 2013, and before January 1, 2017, “Internal Revenue Code", for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2013, except as provided in subds. 2. and 3. and subject to subd. 4.
59,1067
Section 1067
. 71.22 (4m) (j) 3. i. of the statutes is created to read:
71.22
(4m) (j) 3. i. Section 2004 of P.L.
114-41.
59,1068
Section 1068
. 71.22 (4m) (j) 3. j. of the statutes is created to read:
