AB507-ASA2,7,1918 2. The amount of any unused credit under this subsection in any taxable year
19may be carried forward to subsequent taxable years.
AB507-ASA2, s. 13 20Section 13. 71.30 (3) (bb) of the statutes is created to read:
AB507-ASA2,7,2121 71.30 (3) (bb) Manufacturing investment credit under s. 71.28 (3t).
AB507-ASA2, s. 14 22Section 14. 71.34 (1) (g) of the statutes is amended to read:
AB507-ASA2,7,2523 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
24corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), and
25(3g), and (3t) and passed through to shareholders.
AB507-ASA2, s. 15
1Section 15. 71.45 (2) (a) 10. of the statutes is amended to read:
AB507-ASA2,8,72 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
3computed under s. 71.47 (1dd) to (1dx) and not passed through by a partnership,
4limited liability company or tax-option corporation that has added that amount to
5the partnership's, limited liability company's or tax-option corporation's income
6under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47
7(1), (3), (3t), (4) and (5).
AB507-ASA2, s. 16 8Section 16. 71.45 (2) (a) 10b. of the statutes is created to read:
AB507-ASA2,8,119 71.45 (2) (a) 10b. By subtracting from federal taxable income, as provided
10under s. 71.47 (3) (c) 7., the amount of the credit under s. 71.47 (3) that the taxpayer
11added to income under subd. 10. at the time that the taxpayer first claimed the credit.
AB507-ASA2, s. 17 12Section 17. 71.47 (3) (c) 1. of the statutes is amended to read:
AB507-ASA2,8,1913 71.47 (3) (c) 1. If Except as provided in subd. 7., if the credit computed under
14par. (b) is not entirely offset against Wisconsin income or franchise taxes otherwise
15due, the unused balance shall be carried forward and credited against Wisconsin
16income or franchise taxes otherwise due for the following 15 taxable years to the
17extent not offset by these taxes otherwise due in all intervening years between the
18year in which the expense was incurred and the year in which the carry-forward
19credit is claimed.
AB507-ASA2, s. 18 20Section 18. 71.47 (3) (c) 7. of the statutes is created to read:
AB507-ASA2,9,821 71.47 (3) (c) 7. No credit may be claimed under this subsection for taxable years
22that begin after December 31, 2005. For credits that are claimed but unused under
23this subsection for taxable years that begin before January 1, 2005, up to 50 percent
24may be used in each of the following 2 taxable years if the taxpayer has $25,000 or
25less in unused credits as of January 1, 2006. For taxable years beginning after

1December 31, 2005, and before January 1, 2008, a taxpayer who has more than
2$25,000 in unused credits as of January 1, 2006, may deduct an amount in each year
3that is equal to 50 percent of the amount the taxpayer added back to income under
4s. 71.45 (2) (a) 10. at the time that the taxpayer first claimed the credit or, with regard
5to credits passed through from a partnership, limited liability company, or
6tax-option corporation, 50 percent of the amount that the entity added back to its
7income and was included in the partner's, member's, or shareholder's Wisconsin net
8income at the time that the credit was first claimed.
AB507-ASA2, s. 19 9Section 19. 71.47 (3t) of the statutes is created to read:
AB507-ASA2,9,1110 71.47 (3t) Manufacturing investment credit. (a) Definition. In this
11subsection, "claimant" means a person who files a claim under this subsection.
AB507-ASA2,9,1612 (b) Credit. Subject to the limitations provided in this subsection and in s.
13560.28, for taxable years beginning after December 31, 2007, a claimant may claim
14as a credit, amortized over 15 taxable years starting with the taxable year beginning
15after December 31, 2007, against the tax imposed under s. 71.43, up to the amount
16of the tax, an amount equal to the claimant's unused credits under s. 71.47 (3).
AB507-ASA2,9,2317 (c) Limitations. 1. No credit may be claimed under this subsection unless the
18claimant submits with the claimant's return a copy of the claimant's certification by
19the department of commerce under s. 560.28, except that, with regard to credits
20claimed by partners of a partnership, members of a limited liability company, or
21shareholders of a tax-option corporation, the entity shall provide a copy of its
22certification under s. 560.28 to the partner, member, or shareholder to submit with
23his or her return.
AB507-ASA2,9,2524 2. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

1the credit are based on the amount of their unused credits under s. 71.47 (3). A
2partnership, limited liability company, or tax-option corporation shall compute the
3amount of credit that each of its partners, members, or shareholders may claim and
4shall provide that information to each of them. Partners, members of limited liability
5companies, and shareholders of tax-option corporations may claim the credit in
6proportion to their ownership interest.
AB507-ASA2,10,87 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
8credit under s. 71.28 (4), applies to the credit under this subsection.
AB507-ASA2,10,109 2. The amount of any unused credit under this subsection in any taxable year
10may be carried forward to subsequent taxable years.
AB507-ASA2, s. 20 11Section 20. 71.49 (1) (bb) of the statutes is created to read:
AB507-ASA2,10,1212 71.49 (1) (bb) Manufacturing investment credit under s. 71.47 (3t).
AB507-ASA2, s. 21 13Section 21. 77.54 (2) of the statutes is amended to read:
AB507-ASA2,10,1914 77.54 (2) The gross receipts from sales of and the storage, use or other
15consumption of tangible personal property becoming an ingredient or component
16part of an article of tangible personal property or which is consumed or destroyed or
17loses its identity in the manufacture of tangible personal property in any form
18destined for sale, but this exemption shall not include fuel or electricity except as
19provided in sub. (30) (a) 6
.
AB507-ASA2, s. 22 20Section 22. 77.54 (30) (a) 6. of the statutes is created to read:
AB507-ASA2,10,2221 77.54 (30) (a) 6. Fuel and electricity sold for use in manufacturing tangible
22personal property in this state.
AB507-ASA2, s. 23 23Section 23. 77.92 (4) of the statutes is amended to read:
AB507-ASA2,11,1324 77.92 (4) "Net business income", with respect to a partnership, means taxable
25income as calculated under section 703 of the Internal Revenue Code; plus the items

1of income and gain under section 702 of the Internal Revenue Code, including taxable
2state and municipal bond interest and excluding nontaxable interest income or
3dividend income from federal government obligations; minus the items of loss and
4deduction under section 702 of the Internal Revenue Code, except items that are not
5deductible under s. 71.21; plus guaranteed payments to partners under section 707
6(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
7(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (3t); and plus or
8minus, as appropriate, transitional adjustments, depreciation differences, and basis
9differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
10loss, and deductions from farming. "Net business income", with respect to a natural
11person, estate, or trust, means profit from a trade or business for federal income tax
12purposes and includes net income derived as an employee as defined in section 3121
13(d) (3) of the Internal Revenue Code.
AB507-ASA2, s. 24 14Section 24. 560.28 of the statutes is created to read:
AB507-ASA2,11,18 15560.28 Manufacturing investment credit. (1) Definition. In this section,
16"full-time job" means a regular, nonseasonal full-time position in which an
17individual, as a condition of employment, is required to work at least 35 hours in a
18week.
AB507-ASA2,11,22 19(2) Certification. The department shall promulgate rules for the certification
20of businesses as eligible to claim tax credits under s. 71.07 (3t), 71.28 (3t), or 71.47
21(3t). The rules shall permit a business to obtain a certification only if the person
22satisfies one of the following conditions:
AB507-ASA2,11,2423 (a) The business has retained from the effective date of this paragraph ....
24[revisor inserts date], 100 percent of the business's full-time jobs in this state.
AB507-ASA2,12,3
1(b) The business's average annual investment in this state since January 1,
22003, is equal to no less than 2 percent of the total book value of the business's
3depreciable assets in facilities that are based in this state.
AB507-ASA2,12,54 (c) The business's average annual investment in this state since January 1,
52003, is no less than $5,000,000.
AB507-ASA2,12,76 (d) Any other criteria that is specific to an industry, as promulgated by rule by
7the department of commerce, in consultation with the department of revenue.
AB507-ASA2, s. 25 8Section 25. Initial applicability.
AB507-ASA2,12,109 (1) The treatment of section 77.54 (2) and (30) (a) 6. of the statutes first applies
10to fuel and electricity sold on January 1, 2006.
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