2017 - 2018 LEGISLATURE
February 16, 2018 - Introduced by Representatives Steineke, Rohrkaste, Murphy,
Tusler, Spiros and Petersen, cosponsored by Senator Roth. Referred to
Committee on State Affairs.
1An Act to amend
71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4) (a), 2
71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g) and 238.12 (1); and
(2) (cq), 71.07 (3ym), 71.28 (3ym), 77.54 (67) and 238.165 of the statutes; 4relating to: authorizing certain tax benefits for a paper products
5manufacturer with facilities in the city of Neenah and village of Fox Crossing
6and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill authorizes the Wisconsin Economic Development Corporation to
certify a certain paper products manufacturer to claim tax credits. The business
certified by WEDC under the bill may claim as income and franchise tax credits a
percentage of the business's eligible payroll for full-time employees, as defined in the
bill, employed at the business's facilities in the city of Neenah and village of Fox
Crossing, if the employment positions exist when the bill becomes law.
The bill further authorizes WEDC to certify the paper products manufacturer
for additional income and franchise tax credits, subject to certain limitations, if the
business makes a significant capital expenditure at a facility specified above. The
bill also creates a sales and use tax exemption for the sale of building materials,
supplies, and equipment used to construct or develop facilities located at a facility
specified above if the capital expenditures for constructing or developing the
facilities may be claimed as income and franchise tax credits by the business certified
under the bill.
If the amount of any income and franchise tax credit under the bill exceeds the
business's tax liability, the business receives a refund equal to the excess amount.
WEDC may seek repayment of tax credits that the business claims for a year
in which the business failed to maintain employment levels or a significant capital
investment in property required by contract between the business and WEDC. Also,
WEDC must revoke the certification to claim tax credits if the business does any of
1. Supplies false or misleading information to obtain the tax credits.
2. Leaves the state to conduct substantially the same business outside the
3. Ceases operations in the state and does not renew operation of the business
or a similar business in the state within 12 months.
4. Fails to retain at least 93 percent of its full-time employees at the facilities
specified above who were identified as being full-time employees of the business in
the base year, as determined by WEDC.
5. Fails to retain at least 93 percent of its full-time employees employed in this
state but outside the facilities specified above who were identified as being full-time
employees of the business in the base year, as determined by WEDC.
A certification under the bill may remain in effect for no more than 15 years.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
20.835 (2) (cq) of the statutes is created to read:
(cq) Paper products manufacturer credit
. A sum sufficient to make 3
the payments under ss. 71.07 (3ym) (d) 2. and 71.28 (3ym) (d) 2.
(a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the 7
credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), 8
(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (3ym),
(4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), 9
(5r), (5rm), (6n), and (8r) and not passed through by a partnership, limited liability
company, or tax-option corporation that has added that amount to the partnership's, 2
company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
71.07 (3ym) of the statutes is created to read:
71.07 (3ym) Paper products manufacturer credit.
. In this 5
1. “Claimant" means a person who is certified to claim tax benefits under s. 7
238.165 (2) and who files a claim under this subsection.
2. “Eligible payroll" means the amount of state payroll that is attributable to 9
wages paid by the claimant to full-time employees. “Eligible payroll" does not 10
include the amount of wages paid to any full-time employee that exceeds $100,000.
3. “Full-time employee" has the meaning given in s. 238.165 (1m) (a).
4. “State payroll" means the amount of payroll apportioned to this state, as 13
determined under s. 71.25 (8).
5. “Wages" means wages under section 3306
(b) of the Internal Revenue Code, 15
determined without regard to any dollar limitations.
(b) Filing claims; payroll.
Subject to the limitations provided in this subsection 17
and s. 238.165, a claimant may claim as a credit against the tax imposed under s. 18
71.02 or 71.08 an amount calculated as follows:
1. Determine the eligible payroll for the taxable year for full-time employees 20
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. 23
(b), and subject to the limitations under this subsection and s. 238.165, a claimant 24
may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount up
to 15 percent of the claimant's significant capital expenditures in this state in the 2
taxable year, as determined under s. 238.165 (4).
. 1. Partnerships, limited liability companies, and tax-option 4
corporations may not claim the credit under this subsection, but the eligibility for, 5
and the amount of, the credit are based on their payment of amounts described under 6
pars. (b) and (bm). A partnership, limited liability company, or tax-option 7
corporation shall compute the amount of credit that each of its partners, members, 8
or shareholders may claim and shall provide that information to each of them. 9
Partners, members of limited liability companies, and shareholders of tax-option 10
corporations may claim the credit in proportion to their ownership interests.
2. No credit may be allowed under this subsection unless the claimant includes 12
with the claimant's return a copy of the claimant's certification for tax benefits under 13
s. 238.165 (2).
. 1. Section 71.28 (4) (g) and (h), as it applies to the credit 15
under s. 71.28 (4), applies to the credit under this subsection.
2. If the allowable amount of the claim under this subsection exceeds the taxes 17
otherwise due on the claimant's income under s. 71.02, the amount of the claim that 18
is not used to offset those taxes shall be certified by the department of revenue to the 19
department of administration for payment by check, share draft, or other draft 20
drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no 21
interest shall be paid on amounts certified under this subdivision.
71.08 (1) Imposition.
(intro.) If the tax imposed on a natural person, married 25
couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
ss. 71.07 (1), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), 2
(3wm), (3y), (3ym),
(4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8r), (9e), 3
(9m), and (9r), 71.28 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), (3wm),
(3y), and (3ym), 4
71.47 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), and (3y), 71.57 to 71.61, and 71.613 and 5
subch. VIII and payments to other states under s. 71.07 (7), is less than the tax under 6
this section, there is imposed on that natural person, married couple filing jointly, 7
trust or estate, instead of the tax under s. 71.02, an alternative minimum tax 8
computed as follows:
(i) The total of claim of right credit under s. 71.07 (1), farmland 12
preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and 13
beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief 14
credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 15
71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment 16
credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 17
71.07 (3rm), food processing plant and food warehouse investment credit under s. 18
71.07 (3rn), business development credit under s. 71.07 (3y), research credit under 19
s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film 20
production company investment credit under s. 71.07 (5h), veterans and surviving 21
spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 22
71.07 (3w), electronics and information technology manufacturing zone credit under 23
s. 71.07 (3wm), paper products manufacturer credit under s. 71.07 (3ym),
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 2
(a) The amount of the credits computed by a partnership under s. 6
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), 7
(3wm), (3y), (3ym),
(4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and 8
(8r) and passed through to partners shall be added to the partnership's income.
(a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), 12
(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (3ym), 13
(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), and (9s) and not passed 14
through by a partnership, limited liability company, or tax-option corporation that 15
has added that amount to the partnership's, limited liability company's, or 16
tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
71.28 (3ym) of the statutes is created to read:
71.28 (3ym) Paper products manufacturer credit.
. In this 19