LRBs0478/2
JS:skg&kaf:km
1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
To 1995 ASSEMBLY BILL 766
February 15, 1996 - Offered by Representative Ainsworth.
AB766-ASA1,1,5
1An Act to amend 71.08 (1) (intro.), 71.26 (2) (a), 71.28 (3) (b) and 71.47 (3) (b);
2and
to create 71.07 (9a), 71.10 (4) (gb), 71.28 (7), 71.30 (3) (ed), 71.47 (7) and
371.49 (1) (ed) of the statutes;
relating to: the income and franchise tax credit
4for sales taxes and use taxes paid for fuel and electricity used in manufacturing
5and creating a forestry industry residue income tax and franchise tax credit.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB766-ASA1,1,107
71.07
(9a) Forestry industry residue credit. (a) In this subsection, "forestry
8industry residue" means the residue from normal timber harvesting or production;
9including timber thinnings from timber stand improvements, hogged wood, chipped
10wood, slash, sawdust, shavings, edgings, slabs, leaves and bark.
AB766-ASA1,1,1411
(b) Any person may credit against taxes otherwise due under this subchapter,
12up to the amount of those taxes, an amount equal to the result obtained by
13multiplying $5 by the number of tons of forestry industry residue that, during the
14taxable year, the person transports and sells for use as an energy source.
AB766-ASA1,2,5
1(c) Any person who receives a credit under this subsection may carry forward
2to the next 4 taxable years the amount of the credit that is not offset against taxes
3for the year of the production to the extent that that amount is not offset against
4those taxes otherwise due in all of the years between the year for which the credit
5was computed and the year for which the carry-forward is claimed.
AB766-ASA1,2,76
(d) Section 71.28 (4) (g) to (i), as it applies to the credit under s. 71.28 (4), applies
7to the credit under this subsection.
AB766-ASA1,2,1710
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
11couple filing jointly, trust or estate under s. 71.02, not considering the credits under
12ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2fd), (3m), (6)
, (9a) and (9e), 71.28
13(1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj),
14(1dL), (1ds), (1fd) and (2m) and subchs. VIII and IX and payments to other states
15under s. 71.07 (7), is less than the tax under this section, there is imposed on that
16natural person, married couple filing jointly, trust or estate, instead of the tax under
17s. 71.02, an alternative minimum tax computed as follows:
AB766-ASA1, s. 3
18Section
3. 71.10 (4) (gb) of the statutes is created to read:
AB766-ASA1,2,1919
71.10
(4) (gb) Forestry industry residue credit under s. 71.07 (9a).
AB766-ASA1,3,1122
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
23the gross income as computed under the internal revenue code as modified under
24sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
25computed under s. 71.28 (1)
and, (3) to (5)
and (7) plus the amount of the credit
1computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL) and (1ds) and not passed
2through by a partnership, limited liability company or tax-option corporation that
3has added that amount to the partnership's, limited liability company's or tax-option
4corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from
5the sale or other disposition of assets the gain from which would be wholly exempt
6income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at
7a gain and minus deductions, as computed under the internal revenue code as
8modified under sub. (3), plus or minus, as appropriate, an amount equal to the
9difference between the federal basis and Wisconsin basis of any asset sold,
10exchanged, abandoned or otherwise disposed of in a taxable transaction during the
11taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB766-ASA1,3,1913
71.28
(3) (b) The tax imposed upon or measured by corporation Wisconsin net
14income under s. 71.23 (1) or (2) shall be reduced by an amount equal to the sales and
15use tax under ch. 77 paid by the corporation in
such
the taxable year on
forestry
16industry residue, as defined in s. 71.07 (9a), consumed in manufacturing tangible
17personal property in this state and 90% of the sales and use tax paid by the
18corporation in the taxable year on other fuel and
on electricity consumed in
19manufacturing tangible personal property in this state.
AB766-ASA1,3,2421
71.28
(7) Forestry industry residue credit. (a) In this subsection, "forestry
22industry residue" means the residue from normal timber harvesting or production;
23including timber thinnings from timber stand improvements, hogged wood, chipped
24wood, slash, sawdust, shavings, edgings, slabs, leaves and bark.
AB766-ASA1,4,4
1(b) Any person may credit against taxes otherwise due under this subchapter,
2up to the amount of those taxes, an amount equal to the result obtained by
3multiplying $5 by the number of tons of forestry industry residue that, during the
4taxable year, the person transports and sells for use as an energy source.
AB766-ASA1,4,95
(c) Any person who receives a credit under this subsection may carry forward
6to the next 4 taxable years the amount of the credit that is not offset against taxes
7for the year of the production to the extent that that amount is not offset against
8those taxes otherwise due in all of the years between the year for which the credit
9was computed and the year for which the carry-forward is claimed.
AB766-ASA1,4,1110
(d) Subsection (4) (g) (to (i), as it applies to the credit under sub. (4), applies to
11the credit under this subsection.
AB766-ASA1, s. 7
12Section
7. 71.30 (3) (ed) of the statutes is created to read:
AB766-ASA1,4,1313
71.30
(3) (ed) Forestry industry residue credit under s. 71.28 (7).
AB766-ASA1,4,2115
71.47
(3) (b) The tax imposed upon or measured by corporation Wisconsin net
16income under s. 71.43 (1) or (2) shall be reduced by an amount equal to the sales and
17use tax under ch. 77 paid by the corporation in
such
the taxable year on
forestry
18industry residue, as defined in s. 71.07 (9a), consumed in manufacturing tangible
19personal property in this state and 90% of the sales and use tax paid by the
20corporation in the taxable year on other fuel and
on electricity consumed in
21manufacturing tangible personal property in this state.
AB766-ASA1,5,223
71.47
(7) Forestry industry residue credit. (a) In this subsection, "forestry
24industry residue" means the residue from normal timber harvesting or production;
1including timber thinnings from timber stand improvements, hogged wood, chipped
2wood, slash, sawdust, shavings, edgings, slabs, leaves and bark.
AB766-ASA1,5,63
(b) Any person may credit against taxes otherwise due under this subchapter,
4up to the amount of those taxes, an amount equal to the result obtained by
5multiplying $5 by the number of tons of forestry industry residue that, during the
6taxable year, the person transports and sells for use as an energy source.
AB766-ASA1,5,117
(c) Any person who receives a credit under this subsection may carry forward
8to the next 4 taxable years the amount of the credit that is not offset against taxes
9for the year of the production to the extent that that amount is not offset against
10those taxes otherwise due in all of the years between the year for which the credit
11was computed and the year for which the carry-forward is claimed.
AB766-ASA1,5,1312
(d) Section 71.28 (4) (g) (to (i), as it applies to the credit under s. 71.28 (4),
13applies to the credit under this subsection.
AB766-ASA1,5,1515
71.49
(1) (ed) Forestry industry residue credit under s. 71.47 (7).
AB766-ASA1,5,18
17(1)
Forestry industry residue credit. This act first applies to taxable years
18beginning on the January 1 after publication.
