2017 Wisconsin Act 59

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59,1091 Section 1091 . 71.34 (1g) (b) of the statutes is repealed.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:

71.34 (1g) (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.

59,1096 Section 1096 . 71.34 (1g) (j) 3. L. of the statutes is created to read:

71.34 (1g) (j) 3. L. P.L. 114-239.

59,1097 Section 1097 . 71.34 (1g) (k) of the statutes is created to read:

71.34 (1g) (k) 1. For taxable years beginning after December 31, 2016, for tax option corporations, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds. 2., 3., and 5. and s. 71.98 and subject to subd. 4.

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.

5. For purposes of this paragraph, section 1366 (f) of the Internal Revenue Code (relating to pass-through of items to shareholders) is modified by substituting the tax under s. 71.35 for the taxes under sections 1374 and 1375 of the Internal Revenue Code.

59,1098 Section 1098 . 71.42 (2) (b) of the statutes is repealed.

59,1099 Section 1099 . 71.42 (2) (j) 1. of the statutes is amended to read:

71.42 (2) (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. to 4. and subject to subd. 5.

59,1100 Section 1100 . 71.42 (2) (j) 3. i. of the statutes is created to read:

71.42 (2) (j) 3. i. Section 2004 of P.L. 114-41.

59,1101 Section 1101 . 71.42 (2) (j) 3. j. of the statutes is created to read:

71.42 (2) (j) 3. j. Sections 503 and 504 of P.L. 114-74.

59,1102 Section 1102 . 71.42 (2) (j) 3. k. of the statutes is created to read:

71.42 (2) (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.

59,1103 Section 1103 . 71.42 (2) (j) 3. L. of the statutes is created to read:

71.42 (2) (j) 3. L. P.L. 114-239.

59,1104 Section 1104 . 71.42 (2) (k) of the statutes is created to read:

71.42 (2) (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. to 4. and s. 71.98 and subject to subd. 5.

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, “Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code.

5. 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.

59,1108 Section 1108 . 71.45 (4) (a) of the statutes is amended to read:

71.45 (4) (a) Except as provided in par. (b) and s. 71.80 (25), insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss sustained incurred in any of the next 20 immediately preceding taxable years, if the insurer was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.

59,1108x Section 1108x. 71.47 (3q) (c) 3. of the statutes is amended to read:

71.47 (3q) (c) 3. The maximum amount of credits that may be awarded under this subsection and ss. 71.07 (3q) and 71.28 (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.

59,1109 Section 1109 . 71.47 (3q) (d) 2. of the statutes is amended to read:

71.47 (3q) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, 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.

59,1110ba Section 1110ba. 71.47 (3w) (b) (intro.) of the statutes is amended to read:

71.47 (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. 71.43 an amount calculated as follows:

59,1110bb Section 1110bb. 71.47 (3w) (bm) 1. of the statutes is amended to read:

71.47 (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. 71.43 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.

59,1110bc Section 1110bc. 71.47 (3w) (bm) 2. of the statutes is amended to read:

71.47 (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. 71.43 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.

59,1110bd Section 1110bd. 71.47 (3w) (bm) 3. of the statutes is amended to read:

71.47 (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. 71.43 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.

59,1110be Section 1110be. 71.47 (3w) (bm) 4. of the statutes is amended to read:

71.47 (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. 71.43, 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.

59,1110d Section 1110d. 71.47 (3w) (c) 1. of the statutes is renumbered 71.47 (3w) (c) 1. a. and amended to read:

71.47 (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. 71.43, 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.

59,1110e Section 1110e. 71.47 (3w) (c) 1. b. of the statutes is created to read:

71.47 (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.

59,1110f Section 1110f. 71.47 (3w) (c) 2. of the statutes is amended to read:

71.47 (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.

59,1110g Section 1110g. 71.47 (3w) (c) 3. of the statutes is amended to read:

71.47 (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.

59,1110h Section 1110h. 71.47 (3w) (d) of the statutes is amended to read:

71.47 (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. This paragraph does not apply to claims filed after December 31, 2017.

59,1111b Section 1111b. 71.47 (3y) (b) (intro.) of the statutes is amended to read:

71.47 (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. 71.43 all of the following:

59,1111d Section 1111d. 71.47 (3y) (c) 1. of the statutes is amended to read:

71.47 (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.

59,1111e Section 1111e. 71.47 (3y) (c) 2. of the statutes is amended to read:

71.47 (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.

59,1111f Section 1111f. 71.47 (3y) (d) 1. of the statutes is amended to read:

71.47 (3y) (d) 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. This subdivision does not apply to claims filed after December 31, 2017.

59,1111g Section 1111g. 71.47 (3y) (d) 2. of the statutes is renumbered 71.47 (3y) (d) 2. a. and amended to read:

71.47 (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. 71.43, 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.

59,1111h Section 1111h. 71.47 (3y) (d) 2. b. of the statutes is created to read:

71.47 (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.

59,1111k Section 1111k. 71.47 (4) (k) of the statutes is created to read:

71.47 (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. 71.43, 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.

59,1111m Section 1111m. 71.47 (5b) (d) 3. of the statutes is amended to read:

71.47 (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.

59,1112 Section 1112 . 71.47 (5r) (a) 2. of the statutes is amended to read:

71.47 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).

59,1113 Section 1113 . 71.47 (5r) (a) 6. b. of the statutes is amended to read:

71.47 (5r) (a) 6. b. A school approved under s. 38.50 440.52, if the delivery of education occurs in this state.

59,1113u Section 1113u. 71.47 (6) (h) of the statutes is amended to read:

71.47 (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.

59,1114 Section 1114 . 71.47 (6) (i) of the statutes is created to read:

71.47 (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.

59,1114j Section 1114j. 71.49 (1) (c) of the statutes is amended to read: