2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 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.
28,1725
Section
1725. 71.47 (5b) (d) 3. of the statutes is created to read:
71.47 (5b) (d) 3. For calendar years beginning 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.
28,1725w
Section 1725w. 71.47 (5f) of the statutes is repealed and recreated to read:
71.47 (5f) Film production services credit. (a) Definitions. In this subsection:
1. "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds
$100,000 for a production that is 30 minutes or longer or $50,000
for a production that is less than 30 minutes . "Accredited production" also means an electronic game, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. "Accredited production" does not include any of the following, regardless of the production costs:
a. News, current events, or public programming or a program that includes weather or market reports.
b. A talk show.
c. A production with respect to a questionnaire or contest.
d. A sports event or sports activity.
e. A gala presentation or awards show.
f. A finished production that solicits funds.
g. A production for which the production company is required under
18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.
h. A production produced primarily for industrial, corporate, or institutional purposes.
2. "Claimant" means a person who files a claim under this subsection.
3. "Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce. "Production expenditures" do not include salary, wages, or labor-related contract payments.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.43 any of the following amounts:
1. An amount equal to 25 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000.
A claimant may claim an additional amount equal to 3 percent of any salary, wages, or contract payments described in this subdivision if the individual who received the salary, wages, or contract payments was also living in an economically distressed area of this state, as determined by the department of commerce under s. 560.706 (2) (e), at the time that the individual was paid.
2. An amount equal to 20 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals who were not residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000 or paid as above-the-line expenses to individuals such as nontechnical crew members, producers, writers, casting directors, and actors.
3. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.
(c) Limitations. 1. A claimant may not claim a credit under this subsection if less than 35 percent of the total budget for the accredited production is spent in this state.
2. The total amount of the credits that a claimant may claim under par. (b) 2. in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages, or labor-related contract payments paid to each individual described in par. (b) 2. in the taxable year.
3. No credit may be claimed under par. (b) 3. for the purchase of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) the sale of which is not sourced to this state, as provided under s. 77.522.
4. The maximum amount of all credits that a claimant may claim under this subsection for each accredited production is $10,000,000.
5. The maximum amount of the credits that may be claimed under this subsection and sub. (5h) and ss. 71.07 (5f) and (5h) and 71.28 (5f) and (5h) in fiscal year
2009-10 is $
1,500,000.
The maximum amount of the credits that may be claimed under this subsection and sub. (5h) and ss. 71.07 (5f) and (5h) and 71.28 (5f) and (5h) in fiscal year 2010-11 is $1,500,000.
6. No credit may be allowed under this subsection unless the claimant files an application with the department of commerce, at the time and in the manner prescribed by the department of commerce, and the department of commerce approves the application. The claimant shall submit a fee with the application in an amount equal to 2 percent of the claimant's budgeted production expenditures or to $5,000, whichever is less. The claimant shall submit a copy of the approved application with the claimant's return.
7. 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 interest.
(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 credits under this subsection.
2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43 or no tax is 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) (bm).
28,1726x
Section 1726x. 71.47 (5h) (a) 2. of the statutes is amended to read:
71.47 (5h) (a) 2. "Film production company" means an entity that exclusively creates films, videos, electronic games, broadcast advertisement, or television productions, not including the productions described under s. 71.47 accredited productions, as defined in sub. (5f) (a) 1. a. to h.
28,1726yb
Section 1726yb. 71.47 (5h) (b) (intro.) of the statutes is amended to read:
71.47 (5h) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007 2008, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of the taxes, for the first 3 taxable years that the claimant is doing business in this state as a film production company, an amount that is equal to 15 percent of the following that the claimant paid in the taxable year to establish or operate a film production company in this state:
28,1726yc
Section 1726yc. 71.47 (5h) (b) 1. of the statutes is amended to read:
71.47 (5h) (b) 1. The purchase price of depreciable, tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), if the sale of the tangible personal property, items, property, or goods is sourced to this state under s. 77.522.
28,1726yd
Section 1726yd. 71.47 (5h) (c) 1. of the statutes is amended to read:
71.47 (5h) (c) 1. A claimant may claim the credit under par. (b) 1., if the tangible personal property, or item, property, or good under s. 77.52 (1) (b), (c), or (d), is purchased after December 31, 2007 2008, and the tangible personal property, item, property, or good is used for at least 50 percent of its use in the claimant's business as a film production company.
28,1726ye
Section 1726ye. 71.47 (5h) (c) 2. of the statutes is amended to read:
71.47 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2007 2008, and the completed project is placed in service after December 31, 2007 2008.
28,1726yf
Section 1726yf. 71.47 (5h) (c) 3. of the statutes is amended to read:
71.47 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2007 2008, and the completed project is placed in service after December 31, 2007 2008.
28,1726yg
Section 1726yg. 71.47 (5h) (c) 4. of the statutes is amended to read:
71.47 (5h) (c) 4. No claim may be allowed under this subsection unless the department of commerce certifies, in writing, that the credits claimed under this subsection are for expenses related to establishing or operating a film production company in this state and the claimant submits a copy of the certification with the claimant's return.
28,1726yh
Section 1726yh. 71.47 (5h) (c) 4d. of the statutes is created to read:
71.47 (5h) (c) 4d. The maximum amount of all credits that a claimant may claim under this subsection for each project for which expenses are certified under subd. 4. is $10,000,000.
28,1726yj
Section 1726yj. 71.47 (5h) (c) 4m. of the statutes is created to read:
71.47 (5h) (c) 4m. The maximum amount of the credits that may be claimed under this subsection and sub. (5f) and ss. 71.07 (5f) and (5h) and 71.28 (5f) and (5h) in fiscal year
2009-10 is $
1,500,000.
The maximum amount of the credits that may be claimed under this subsection and sub. (5f) and ss. 71.07 (5f) and (5h) and 71.28 (5f) and (5h) in fiscal year 2010-11 is $1,500,000.
28,1726yk
Section 1726yk. 71.47 (5h) (d) of the statutes is renumbered 71.47 (5h) (d) 1. and amended to read:
71.47 (5h) (d) 1. Section 71.28 (4) (e) to
, (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.
28,1726yL
Section 1726yL. 71.47 (5h) (d) 2. of the statutes is created to read:
71.47 (5h) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43 or no tax is 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) (bL).
28,1728
Section
1728. 71.47 (5i) (b) of the statutes is amended to read:
71.47 (5i) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009 2011, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1) (a) to (p).
28,1728d
Section 1728d. 71.47 (5k) (b) of the statutes is amended to read:
71.47 (5k) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after July 1, 2009 2011, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to 5 percent of the amount the claimant paid in the taxable year to a community rehabilitation program to perform work for the claimant's business, pursuant to a contract.
28,1729
Section
1729
. 71.47 (6) (c) of the statutes is amended to read:
71.47
(6) (c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was
approved recommended by the state historic preservation officer for approval by the secretary of the interior under
36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began
and that the rehabilitation was approved by the secretary of the interior under 36 CFR 67.6.
28,1730
Section
1730. 71.47 (6) (cm) of the statutes is created to read:
71.47 (6) (cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.
28,1731
Section
1731. 71.47 (6) (f) of the statutes is amended to read:
71.47 (6) (f) A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection. The individual partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation, in proportion to the ownership interest of each partner, member or shareholder. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.
28,1732
Section
1732. 71.47 (6) (g) of the statutes is created to read:
71.47 (6) (g) 1. If a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.
2. Notwithstanding s. 71.77, the department may adjust or disallow the credit claimed under this subsection within 4 years after the date that the state historical society notifies the department that the expenditures for which the credit was claimed do not comply with the standards for certification promulgated under s. 44.02 (24).
28,1733
Section
1733. 71.47 (8r) of the statutes is created to read:
71.47 (8r) Beginning farmer and farm asset owner tax credit. (a) Definitions. In this subsection:
1. "Agricultural assets" means machinery, equipment, facilities, or livestock that is used in farming.
2. "Beginning farmer" means a person who meets the conditions specified in s. 93.53 (2).
3. "Claimant" means an established farmer who files a claim under this subsection.
4. "Established farmer" means a person who meets the conditions specified in s. 93.53 (3).
5. "Farming" has the meaning given in section
464 (e) (1) of the Internal Revenue Code.
6. "Lease amount" is the amount of the cash payment paid by a beginning farmer to an established farmer each year for leasing the established farmer's agricultural assets.
(b) Filing claims. For taxable years beginning after December 31, 2010, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 15 percent of the lease amount received by the claimant in the taxable year. If the allowable amount of the claim exceeds the taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (en).
(c) Limitations. 1. A claimant may only claim the credit under this subsection for the first 3 years of any lease of the claimant's agricultural assets to a beginning farmer.
2. Along with a claimant's income tax return, a claimant shall submit to the department a certificate of eligibility provided under s. 93.53 (5) (c).
3. 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 the amounts received by the entities 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.
(d) Administration. Subsection (4) (e), (g), and (h), as it applies to the credit under that sub. (4), applies to the credit under this subsection.
28,1734
Section
1734. 71.49 (1) (db) of the statutes is created to read:
71.49 (1) (db) Super research and development credit under s. 71.47 (4m).
28,1740d
Section 1740d. 71.49 (1) (epr) of the statutes is repealed.
28,1740e
Section 1740e. 71.49 (1) (eps) of the statutes is repealed.
71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), jobs credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), enterprise zone jobs credit under s. 71.47 (3w), film production services credit under s. 71.47 (5f) (b) 2.
, film production company investment credit under s. 71.47 (5h), beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.
28,1741s
Section 1741s. 71.52 (5) of the statutes is amended to read:
71.52
(5) "Household income" means all income received by all persons of a household in a calendar year while members of the household, less
$250 $500 for each of the claimant's dependents, as defined in section
152 of the internal revenue code, who have the same principal abode as the claimant for more than 6 months during the year to which the claim relates.
28,1741w
Section 1741w. 71.54 (1) (f) (intro.) of the statutes is amended to read:
71.54 (1) (f) 2001 and thereafter. (intro.) The Subject to sub. (2m), the amount of any claim filed in 2001 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:
28,1741we
Section 1741we. 71.54 (2) (b) 3. of the statutes is amended to read:
71.54 (2) (b) 3. In Subject to sub. (2m), in calendar year 1990 or any subsequent calendar year, $1,450.
