71.26 (2) (b) 10. a. For taxable years beginning after December 31, 2013, and before January 1, 2017, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.
59,1081
Section 1081
. 71.26 (2) (b) 10. d. of the statutes is amended to read:
71.26
(2) (b) 10. d. For purposes of subd. 10. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2013, except that “Internal Revenue Code" includes the provisions of P.L.
113-97, P.L.
113-159, P.L.
113-168, section 302901 of P.L.
113-287, sections 171, 172, and 201 to 221 of P.L.
113-295, sections 102, 105, and 207 of division B of P.L.
113-295, P.L.
114-14,
and P.L.
114-26, section 2004 of P.L. 114-41, sections 503 and 504 of P.L. 114-74, sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L. 114-113, and P.L. 114-239.
59,1082
Section 1082
. 71.26 (2) (b) 11. of the statutes is created to read:
71.26 (2) (b) 11. a. For taxable years beginning after December 31, 2016, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.
b. For purposes of subd. 11. a., “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subd. 11. c. and d. and s. 71.98 and subject to subd. 11. e.
c. For purposes of subd. 11. a., “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.
d. For purposes of subd. 11. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016.
e. For purposes of subd. 11. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, 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.
59,1082m
Section 1082m. 71.26 (3) (cf) of the statutes is created to read:
71.26 (3) (cf) For taxable years beginning after December 31, 2016, section 118 (a) (relating to nonshareholder contributions to capital) is modified so that the amount of income and franchise tax credits under s. 71.28 (3q) (b), (3w) (b) and (bm) 1., 2., and 4., (3wm) (b) and (bm), and (3y) (b) that is not included in federal taxable income is added to federal taxable income.
59,1083
Section 1083
. 71.26 (4) (a) of the statutes is amended to read:
71.26 (4) (a) Except as provided in par. (b)
and s. 71.80 (25), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained incurred in any of the next 20 immediately preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained incurred, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection, Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.
59,1083x
Section 1083x. 71.28 (3q) (c) 3. of the statutes is amended to read:
71.28 (3q) (c) 3. The maximum amount of credits that may be awarded under this subsection and ss. 71.07 (3q) and 71.47 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under s. 238.15 (3) (d), 2015 stats., or s. 560.205 (3) (d), 2009 stats.
59,1084
Section 1084
. 71.28 (3q) (d) 2. of the statutes is amended to read:
71.28 (3q) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, 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) (bb), except that the amounts certified under this subdivision for taxable years beginning after December 31, 2009, and before January 1, 2012, shall be paid in taxable years beginning after December 31, 2011. Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.
59,1085ba
Section 1085ba. 71.28 (3w) (b) (intro.) of the statutes is amended to read:
71.28 (3w) (b) Filing claims; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows:
59,1085bb
Section 1085bb. 71.28 (3w) (bm) 1. of the statutes is amended to read:
71.28 (3w) (bm) 1. In addition to the credits under par. (b) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee's first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.
59,1085bc
Section 1085bc. 71.28 (3w) (bm) 2. of the statutes is amended to read:
71.28 (3w) (bm) 2. In addition to the credits under par. (b) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may
claim a credit under this subdivision for no more than 5 consecutive taxable years.
59,1085bd
Section 1085bd. 71.28 (3w) (bm) 3. of the statutes is amended to read:
71.28 (3w) (bm) 3. In addition to the credits under par. (b) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.23 up to 10 percent of the claimant's significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.
59,1085be
Section 1085be. 71.28 (3w) (bm) 4. of the statutes is amended to read:
71.28 (3w) (bm) 4. In addition to the credits under par. (b) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.23, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.
59,1085d
Section 1085d. 71.28 (3w) (c) 1. of the statutes is renumbered 71.28 (3w) (c) 1. a. and amended to read:
71.28 (3w) (c) 1. a.
If For claims filed before January 1, 2018, if the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.23, the amount of the claim that is not used to offset those taxes 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 under s. 20.835 (2) (co). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 1. a.
59,1085e
Section 1085e. 71.28 (3w) (c) 1. b. of the statutes is created to read:
71.28 (3w) (c) 1. b. For claims filed after December 31, 2017, claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (co). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 1. b.
59,1085f
Section 1085f. 71.28 (3w) (c) 2. of the statutes is amended to read:
71.28 (3w) (c) 2. Partnerships
For claims filed before January 1, 2018, 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 described under pars. (b) and (bm). 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. For claims filed after December 31, 2017, partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under subd. 1. b.
59,1085g
Section 1085g. 71.28 (3w) (c) 3. of the statutes is amended to read:
71.28 (3w) (c) 3. No For claims filed before January 1, 2018, 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. 238.399 (5) or (5m) or s. 560.799 (5) or (5m), 2009 stats.
59,1085h
Section 1085h. 71.28 (3w) (d) of the statutes is amended to read:
71.28 (3w) (d) Administration. Subsection (4) (g) and (h), as it applies to the credit under sub. (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. This paragraph does not apply to claims filed after December 31, 2017.
59,1085i
Section 1085i. 71.28 (3wm) of the statutes is created to read:
71.28 (3wm) Electronics and information technology manufacturing zone credit. (a) Definitions. In this subsection:
1. “Claimant" means a person who is certified to claim tax benefits under s. 238.396 (3) and who files a claim under this subsection.
2. “Full-time employee” means an individual who is employed in a job for which the annual pay is at least $30,000 and who is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.
3. “State payroll" means the amount of payroll apportioned to this state, as determined under s. 71.25 (8).
4. “Wages" means wages under section
3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
5. “Zone” means a zone designated under s. 238.396 (1m).
6. “Zone payroll" means the amount of state payroll that is attributable to wages paid by the claimant to full-time employees for services that are performed in the zone or that are performed outside the zone, but within the state, and for the benefit of the operations within the zone, as determined by the Wisconsin Economic Development Corporation. “Zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.
(b) Filing claims; payroll. Subject to the limitations provided in this subsection and s. 238.396, a claimant may claim as a credit an amount calculated as follows:
1. Determine the zone payroll for the taxable year for full-time employees employed by the claimant.
2. Multiply the amount determined under subd. 1. by 17 percent.
(bm) Filing supplemental claims. In addition to claiming the credit under par. (b), and subject to the limitations under this subsection and s. 238.396, a claimant may claim as a credit up to 15 percent of the claimant's significant capital expenditures in the zone in the taxable year, as determined under s. 238.396 (3m).
(c) Limitations.
Partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under par. (d). The Wisconsin Economic Development Corporation may recover credits claimed under this paragraph that are revoked or otherwise invalid from the partnership, limited liability company, or tax-option corporation or from the individual partner, member, or shareholder.
(d) Administration.
Claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cp). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.
59,1086b
Section 1086b. 71.28 (3y) (b) (intro.) of the statutes is amended to read:
71.28 (3y) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection and s. 238.308, for taxable years beginning after December 31, 2015, a claimant may claim as a credit against the tax imposed under s. 71.23 all of the following:
59,1086d
Section 1086d. 71.28 (3y) (c) 1. of the statutes is amended to read:
71.28 (3y) (c) 1. Partnerships
For claims filed before January 1, 2018, 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. For claims filed after December 31, 2017, partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under par. (d) 2. b.
59,1086e
Section 1086e. 71.28 (3y) (c) 2. of the statutes is amended to read:
71.28 (3y) (c) 2. No For claims filed before January 1, 2018, 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. 238.308.
59,1086f
Section 1086f. 71.28 (3y) (d) 1. of the statutes is amended to read:
71.28 (3y) (d) 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection. This subdivision does not apply to claims filed after December 31, 2017.
59,1086g
Section 1086g. 71.28 (3y) (d) 2. of the statutes is renumbered 71.28 (3y) (d) 2. a. and amended to read:
71.28 (3y) (d) 2. a.
If For claims filed before January 1, 2018, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, 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). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 2. a.
59,1086h
Section 1086h. 71.28 (3y) (d) 2. b. of the statutes is created to read:
71.28 (3y) (d) 2. b. For claims filed after December 31, 2017, claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 2. b.
59,1086i
Section 1086i. 71.28 (4) (k) of the statutes is created to read:
71.28 (4) (k) Refunds. Notwithstanding par. (f), for taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (ad) 4., 5., or 6. exceeds the tax otherwise due under s. 71.23, all of the following apply:
1. 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. (ad) 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).
2. The amount of the claim not used to offset the tax due and not certified for payment under subd. 1. 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.
59,1086m
Section 1086m. 71.28 (5b) (d) 3. of the statutes is amended to read:
71.28 (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.
59,1087
Section 1087
. 71.28 (5r) (a) 2. of the statutes is amended to read:
71.28 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).
59,1088
Section 1088
. 71.28 (5r) (a) 6. b. of the statutes is amended to read:
71.28 (5r) (a) 6. b. A school approved under s.
38.50 440.52, if the delivery of education occurs in this state.
59,1088u
Section 1088u. 71.28 (6) (h) of the statutes is amended to read:
71.28
(6) (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.
59,1089
Section 1089
. 71.28 (6) (i) of the statutes is created to read:
71.28
(6) (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.
59,1090j
Section 1090j. 71.30 (3) (c) of the statutes is amended to read:
71.30 (3) (c) Research credit under s. 71.28 (4)
, except as provided under par. (f).
59,1090k
Section 1090k. 71.30 (3) (f) of the statutes is amended to read:
71.30 (3) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing facility investment credit under s. 71.28 (3r), woody biomass harvesting and processing credit under s. 71.28 (3rm), food processing plant and food warehouse investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28 (3w), business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., film production services credit under s. 71.28 (5f), film production company investment credit under s. 71.28 (5h), beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated tax payments under s. 71.29.
59,1091
Section 1091
. 71.34 (1g) (b) of the statutes is repealed.
59,1092
Section 1092
. 71.34 (1g) (j) 1. of the statutes is amended to read:
71.34 (1g) (j) 1. For taxable years beginning after December 31, 2013, and before January 1, 2017, for tax option corporations, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2013, except as provided in subds. 2., 3., and 5. and subject to subd. 4.
59,1093
Section 1093
. 71.34 (1g) (j) 3. i. of the statutes is created to read:
71.34
(1g) (j) 3. i. Section 2004 of P.L.
114-41.
59,1094
Section 1094
. 71.34 (1g) (j) 3. j. of the statutes is created to read:
71.34
(1g) (j) 3. j. Sections 503 and 504 of P.L.
114-74.
59,1095
Section 1095
. 71.34 (1g) (j) 3. k. of the statutes is created to read:
