Amendment ASA1-AB100

AB100-ASA1,573,4 71.07 (2dm) (hm) Credits claimed A claimant may claim the credit under this subsection, including any credits carried over, may be offset only against the amount of the tax otherwise due under this subchapter attributable to income from the business operations of the claimant in the development zone; except that a claimant in a development zone under s. 560.795 (1) (e) may offset credits, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income; and against the tax attributable to income from directly related business operations of the claimant.

AB100-ASA1, s. 1298 Section 1298. 71.07 (2dr) (a) of the statutes is amended to read:

AB100-ASA1,574,3 71.07 (2dr) (a) Credit. Any person may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the person's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" include only expenses incurred by the claimant in a development zone under subch. VI of ch. 560, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" do not include compensation used in computing the credit under sub. (2dj) nor research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), the person's base amount, as defined in section 41 (c) of the internal revenue code, in a development zone, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and 2. and, (d), (df), and (dh) and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), in a development zone, if the claimant submits with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.765 (3) and a statement from the department of commerce verifying the claimant's qualified research expenses for research conducted exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit under this paragraph. The rules under sub. (2di) (f) and (g), as they apply to the credit under that subsection, apply to claims under this paragraph. Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph.

AB100-ASA1, s. 1299 Section 1299. 71.07 (2dx) (a) 5. of the statutes is amended to read:

AB100-ASA1,574,18 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient; , if the person has been certified in the manner under sub. (2dj) (am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.

AB100-ASA1, s. 1300 Section 1300. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:

AB100-ASA1,574,25 71.07 (2dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3), 560.797 (4) or 560.798 (3), any person may claim as a credit against the taxes imposed on the person's income from the person's business activities in a development zone otherwise due under this chapter the following amounts:

AB100-ASA1, s. 1305 Section 1305. 71.07 (3m) (a) 1. b. of the statutes is amended to read:

AB100-ASA1,575,5 71.07 (3m) (a) 1. b. For partnerships except publicly traded partnerships treated as corporations under s. 71.22 (1) (1k), or limited liability companies, except limited liability companies treated as corporations under s. 71.22 (1) (1k), "claimant" means each individual partner or member.

AB100-ASA1, s. 1306 Section 1306. 71.07 (3n) (title) of the statutes is amended to read:

AB100-ASA1,575,7 71.07 (3n) (title) Dairy and livestock farm investment credit.

AB100-ASA1, s. 1310b Section 1310b. 71.07 (3n) (a) 2. (intro.) of the statutes is amended to read:

AB100-ASA1,575,14 71.07 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010:

AB100-ASA1, s. 1310c Section 1310c. 71.07 (3n) (a) 4. of the statutes is created to read:

AB100-ASA1,575,18 71.07 (3n) (a) 4. "Livestock" means cattle, not including dairy animals; swine; poultry, not including farm-raised game birds or ratites; fish that are raised in aquaculture facilities; sheep; and goats.

AB100-ASA1, s. 1310d Section 1310d. 71.07 (3n) (a) 5. of the statutes is created to read:

AB100-ASA1,575,25 71.07 (3n) (a) 5. "Livestock farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for livestock housing, confinement, feeding, or waste management, including the following, if used exclusively related to livestock and if acquired and placed in service in this state during taxable years that begin after December 31, 2005, and before January 1, 2012:

AB100-ASA1,576,1 a. Birthing structures.

AB100-ASA1,576,2 b. Rearing structures.

AB100-ASA1,576,3 c. Feedlot structures.

AB100-ASA1,576,4 d. Feed storage and handling equipment.

AB100-ASA1,576,5 e. Fences.

AB100-ASA1,576,6 f. Watering facilities.

AB100-ASA1,576,7 g. Scales.

AB100-ASA1,576,8 h. Manure pumping and storage facilities.

AB100-ASA1,576,9 i. Digesters.

AB100-ASA1,576,10 j. Equipment used to produce energy.

AB100-ASA1,576,11 k. Fish hatchery buildings.

AB100-ASA1,576,12 L. Fish processing buildings.

AB100-ASA1,576,13 m. Fish rearing ponds.

AB100-ASA1, s. 1310e Section 1310e. 71.07 (3n) (a) 6. of the statutes is created to read:

AB100-ASA1,576,17 71.07 (3n) (a) 6. a. For taxable years that begin after December 31, 2003, and before January 1, 2006, "used exclusively," related to dairy animals, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1,576,20 b. For taxable years that begin after December 31, 2005, and before January 1, 2010, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1,576,23 c. For taxable years that begin after December 31, 2009, and before January 1, 2012, "used exclusively," related to livestock, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1, s. 1311b Section 1311b. 71.07 (3n) (b) of the statutes is renumbered 71.07 (3n) (b) 1.

AB100-ASA1, s. 1311c Section 1311c. 71.07 (3n) (b) 2. of the statutes is created to read:

AB100-ASA1,577,6 71.07 (3n) (b) 2. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2005, and before January 1, 2012, a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 an amount equal to 10 percent of the amount the claimant paid in the taxable year for livestock farm modernization or expansion related to the operation of the claimant's livestock farm.

AB100-ASA1, s. 1311d Section 1311d. 71.07 (3n) (e) of the statutes is renumbered 71.07 (3n) (e) 1. and amended to read:

AB100-ASA1,577,17 71.07 (3n) (e) 1. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000. 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.

AB100-ASA1, s. 1311e Section 1311e. 71.07 (3n) (e) 2. of the statutes is created to read:

AB100-ASA1,577,22 71.07 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000.

AB100-ASA1, s. 1311g Section 1311g. 71.07 (5) (a) 15. of the statutes is amended to read:

AB100-ASA1,578,4 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20., 35., 36., 37., and 38. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

AB100-ASA1, s. 1311i Section 1311i. 71.07 (5g) of the statutes is created to read:

AB100-ASA1,578,10 71.07 (5g) Health insurance risk-sharing plan assessments credit. (a) Definitions. In this subsection, "claimant" means a partner, limited liability company member, or tax-option corporation shareholder who files a claim under this subsection and who is a partner, member, or shareholder of an entity that is an insurer, as defined in s. 149.10 (5).

AB100-ASA1,578,15 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to a percentage of the amount of the assessment under s. 149.13 that the claimant paid in the taxable year, as determined under par. (c).

AB100-ASA1,578,20 (c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year so that the cost of the credit under this subsection and ss. 71.28 (5g), 71.47 (5g), and 76.655 is as close as practicable to $2,000,000 in the 2006-07 fiscal year and $5,000,000 in each fiscal year thereafter.

AB100-ASA1,579,3 2. 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 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.

AB100-ASA1,579,5 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB100-ASA1, s. 1311j Section 1311j. 71.07 (6e) of the statutes is created to read:

AB100-ASA1,579,8 71.07 (6e) Veterans and surviving spouses property tax credit. (a) Definitions. In this subsection:

AB100-ASA1,579,10 1. "Claimant" means an eligible unremarried surviving spouse or an eligible veteran who files a claim under this subsection.

AB100-ASA1,579,12 2. "Eligible unremarried surviving spouse" means an unremarried surviving spouse of one of the following, as verified by the department of veterans affairs:

AB100-ASA1,579,16 a. An individual who had served on active duty in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces, who was a resident of this state at the time of entry into that active service, and who, while a resident of this state, died while on active duty.

AB100-ASA1,579,23 b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service; who was at least 65 years of age at the time of his or her death or would have been 65 years of age at the close of the year in which the death occurred; who was a resident of this state at the time of his or her death; and who had a service-connected disability rating of 100 percent under 38 USC 1114 or 1134.

AB100-ASA1,580,2 c. An individual who had served in the national guard or a reserve component of the U.S. armed forces, who was a resident of this state at the time of entry into that service, and who, while a resident of this state, died in the line of duty while on active or inactive duty for training purposes.

AB100-ASA1,580,5 3. "Eligible veteran" means an individual who is at least 65 years of age and who is verified by the department of veterans affairs as meeting all of the following conditions:

AB100-ASA1,580,7 a. Served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated in the U.S. armed forces.

AB100-ASA1,580,8 b. Was a resident of this state at the time of entry into that active service.

AB100-ASA1,580,10 c. Is currently a resident of this state for purposes of receiving veterans benefits under ch. 45.

AB100-ASA1,580,12 d. Has a service-connected disability rating of 100 percent under 38 USC 1114 or 1134.

AB100-ASA1,580,13 4. "Principal dwelling" has the meaning given in sub. (9) (a) 2.

AB100-ASA1,581,3 5. "Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant on the claimant's principal dwelling in this state during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year, the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. "Property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).

AB100-ASA1,581,10 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 the amount of the claimant's property taxes. If the allowable amount of the claim exceeds the income 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) (em).

AB100-ASA1,581,12 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB100-ASA1,581,15 2. No credit may be allowed under this subsection if the individual, or the individual's spouse, files a claim under sub. (3m) or (9) or subch. VIII or IX that relates to the same taxable year for which a claim is made under this subsection.

AB100-ASA1,581,17 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB100-ASA1, s. 1311m Section 1311m. 71.07 (6m) (b) of the statutes is renumbered 71.07 (6m) (b) (intro.) and amended to read:

AB100-ASA1,581,22 71.07 (6m) (b) Filing claims. (intro.) Subject to the limitations and conditions provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts:

AB100-ASA1,581,25 1. For taxable years beginning before January 1, 2006, an amount up to $200 of military income for services performed by the claimant while he or she is stationed outside of the United States.

AB100-ASA1, s. 1311n Section 1311n. 71.07 (6m) (b) 2. of the statutes is created to read:

AB100-ASA1,582,4 71.07 (6m) (b) 2. For taxable years beginning after December 31, 2005, an amount up to $300 of military income for services performed by the claimant while he or she is stationed outside of the United States.

AB100-ASA1, s. 1312 Section 1312. 71.07 (10) of the statutes is amended to read:

AB100-ASA1,582,10 71.07 (10) Credits not allowed. The credits under s. 71.28 (4) and (5) may not be claimed by partners, including partners of a publicly traded partnership treated as a corporation under s. 71.22 (1) (1k), members of a limited liability company, including members of a limited liability company treated as a corporation under s. 77.22 (1) (1k), or shareholders of a tax-option corporation.

AB100-ASA1, s. 1312m Section 1312m. 71.08 (1) (intro.) of the statutes is amended to read:

AB100-ASA1,582,20 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3n), (3s), (3t), (5b), (5d), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust, or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB100-ASA1, s. 1312r Section 1312r. 71.10 (4) (cp) of the statutes is created to read:

AB100-ASA1,582,23 71.10 (4) (cp) Health insurance risk-sharing plan assessments credit under s. 71.07 (5g).

AB100-ASA1, s. 1312u Section 1312u. 71.10 (4) (i) of the statutes is amended to read:

AB100-ASA1,583,6 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), veterans and surviving spouses property tax credit under s. 71.07 (6e), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB100-ASA1, s. 1313 Section 1313. 71.10 (5g) of the statutes is created to read:

AB100-ASA1,583,8 71.10 (5g) Veterans trust fund donations. (a) Definitions. In this subsection:

AB100-ASA1,583,9 1. "Department" means the department of revenue.

AB100-ASA1,583,10 2. "Veterans trust fund" means the fund under s. 25.36.

AB100-ASA1,583,14 (b) Voluntary payments. 1. `Designation on return.' Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return any amount of additional payment or any amount of a refund due that individual as a veterans trust fund donation.

AB100-ASA1,583,17 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return as a veterans trust fund donation when the individual files a tax return.

AB100-ASA1,583,21 3. `Designation deducted from refund.' Except as provided in par. (d), if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) and (3m), the department of revenue shall deduct the amount designated on the return as a veterans trust fund donation from the amount of the refund.

AB100-ASA1,583,25 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return as a veterans trust fund donation:

AB100-ASA1,584,5 1. The department shall reduce the designation for the veterans trust fund to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return as a veterans trust fund donation.