AB892-ASA2,4,412 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
13the gross income as computed under the Internal Revenue Code as modified under
14sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
15computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
167., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
17under this paragraph at the time that the taxpayer first claimed the credit plus the
18amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
19(1ds), (1dx), (3g), (3n), (3t), (5b), (5e), and (5g) and not passed through by a
20partnership, limited liability company, or tax-option corporation that has added that
21amount to the partnership's, limited liability company's, or tax-option corporation's
22income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
23other disposition of assets the gain from which would be wholly exempt income, as
24defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
25minus deductions, as computed under the Internal Revenue Code as modified under

1sub. (3), plus or minus, as appropriate, an amount equal to the difference between
2the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
3otherwise disposed of in a taxable transaction during the taxable year, except as
4provided in par. (b) and s. 71.45 (2) and (5).
AB892-ASA2, s. 6 5Section 6. 71.28 (5e) of the statutes is created to read:
AB892-ASA2,4,66 71.28 (5e) Internet equipment credit. (a) Definitions. In this subsection:
AB892-ASA2,4,77 1. "Claimant" means a person who files a claim under this subsection.
AB892-ASA2,4,108 2. "Internet equipment used in the broadband market" means equipment that
9is capable of transmitting data packets or Internet signals at speeds of at least 200
10kilobits per second in either direction.
AB892-ASA2,4,1611 (b) Filing claims. Subject to the limitations provided in this subsection,
12beginning in the first taxable year following the taxable year in which the claimant
13claims an exemption under s. 77.54 (48), a claimant may claim as a credit against the
14taxes imposed under s. 71.23, up to the amount of those taxes, in each taxable year
15for 2 years, the amount certified by the department of commerce that the claimant
16claimed as an exemption under s. 77.54 (48).
AB892-ASA2,4,1817 (c) Limitations. 1. No credit may be allowed under this subsection unless the
18claimant satisfies the requirements under s. 77.54 (48).
AB892-ASA2,5,219 2. Partnerships, limited liability companies, and tax-option corporations may
20not claim the credit under this subsection, but the eligibility for, and the amount of,
21the credit are based on their payment of the amounts described under par. (b). A
22partnership, limited liability company, or tax-option corporation shall compute the
23amount of credit that each of its partners, members, or shareholders may claim and
24shall provide that information to each of them. Partners, members of limited liability

1companies, and shareholders of tax-option corporations may claim the credit in
2proportion to their ownership interests.
AB892-ASA2,5,53 3. The total amount of the credits and exemptions that may be claimed by all
4claimants under this subsection and ss. 71.07 (5e), 71.47 (5e), and 77.54 (48) is
5$7,500,000, as determined by the department of commerce.
AB892-ASA2,5,76 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
7sub. (4), applies to the credit under this subsection.
AB892-ASA2, s. 7 8Section 7. 71.30 (3) (es) of the statutes is created to read:
AB892-ASA2,5,99 71.30 (3) (es) Internet equipment credit under s. 71.28 (5e).
AB892-ASA2, s. 8 10Section 8. 71.34 (1) (g) of the statutes, as affected by 2005 Wisconsin Act 74,
11is amended to read:
AB892-ASA2,5,1412 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
13corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
14(3n), (3t), (5b), (5e), and (5g) and passed through to shareholders.
AB892-ASA2, s. 9 15Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2005 Wisconsin Act
1674
, is amended to read:
AB892-ASA2,5,2217 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
18computed under s. 71.47 (1dd) to (1dx), (3n), (5b), (5e), and (5g) and not passed
19through by a partnership, limited liability company, or tax-option corporation that
20has added that amount to the partnership's, limited liability company's, or
21tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
22credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB892-ASA2, s. 10 23Section 10. 71.47 (5e) of the statutes is created to read:
AB892-ASA2,5,2424 71.47 (5e) Internet equipment credit. (a) Definitions. In this subsection:
AB892-ASA2,5,2525 1. "Claimant" means a person who files a claim under this subsection.
AB892-ASA2,6,3
12. "Internet equipment used in the broadband market" means equipment that
2is capable of transmitting data packets or Internet signals at speeds of at least 200
3kilobits per second in either direction.
AB892-ASA2,6,94 (b) Filing claims. Subject to the limitations provided in this subsection,
5beginning in the first taxable year following the taxable year in which the claimant
6claims an exemption under s. 77.54 (48), a claimant may claim as a credit against the
7taxes imposed under s. 71.43, up to the amount of those taxes, in each taxable year
8for 2 years, the amount certified by the department of commerce that the claimant
9claimed as an exemption under s. 77.54 (48).
AB892-ASA2,6,1110 (c) Limitations. 1. No credit may be allowed under this subsection unless the
11claimant satisfies the requirements under s. 77.54 (48).
AB892-ASA2,6,1912 2. Partnerships, limited liability companies, and tax-option corporations may
13not claim the credit under this subsection, but the eligibility for, and the amount of,
14the credit are based on their payment of the amounts described under par. (b). A
15partnership, limited liability company, or tax-option corporation shall compute the
16amount of credit that each of its partners, members, or shareholders may claim and
17shall provide that information to each of them. Partners, members of limited liability
18companies, and shareholders of tax-option corporations may claim the credit in
19proportion to their ownership interests.
AB892-ASA2,6,2220 3. The total amount of the credits and exemptions that may be claimed by all
21claimants under this subsection and ss. 71.07 (5e), 71.28 (5e), and 77.54 (48) is
22$7,500,000, as determined by the department of commerce.
AB892-ASA2,6,2423 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
24s. 71.28 (4), applies to the credit under this subsection.
AB892-ASA2, s. 11 25Section 11. 71.49 (1) (es) of the statutes is created to read:
AB892-ASA2,7,1
171.49 (1) (es) Internet equipment credit under s. 71.47 (5e).
AB892-ASA2, s. 12 2Section 12. 77.51 (6m) of the statutes is created to read:
AB892-ASA2,7,53 77.51 (6m) For purposes of s. 77.54 (48), "Internet equipment used in the
4broadband market" means equipment that is capable of transmitting data packets
5or Internet signals at speeds of at least 200 kilobits per second in either direction.
AB892-ASA2, s. 13 6Section 13. 77.54 (48) of the statutes is created to read:
AB892-ASA2,7,167 77.54 (48) (a) The gross receipts from the sale of and the storage, use, or other
8consumption of Internet equipment used in the broadband market, if the purchaser
9certifies to the department of commerce, in the manner prescribed by the
10department, that the purchaser will, within 24 months after the effective date of this
11paragraph .... [revisor inserts date], make an investment that is reasonably
12calculated to increase broadband Internet availability in this state and in an amount
13equal to at least 20 percent of the amount the purchaser would have paid in taxes
14imposed under this subchapter for Internet equipment used in the broadband
15market during the 12-month period beginning on the effective date of this paragraph
16.... [revisor inserts date].
AB892-ASA2,7,2217 (b) Every person who is required to make the investment under par. (a) shall,
18within 60 days after the end of the year in which the investment is made, file a report
19with the department of commerce that provides a detailed description of the
20investment, including the amount invested. The department of commerce shall
21provide copies of the report to the department of administration, the department of
22revenue, and the public service commission.
AB892-ASA2, s. 14 23Section 14. 77.92 (4) of the statutes, as affected by 2005 Wisconsin Act 74, is
24amended to read:
AB892-ASA2,8,15
177.92 (4) "Net business income," with respect to a partnership, means taxable
2income as calculated under section 703 of the Internal Revenue Code; plus the items
3of income and gain under section 702 of the Internal Revenue Code, including taxable
4state and municipal bond interest and excluding nontaxable interest income or
5dividend income from federal government obligations; minus the items of loss and
6deduction under section 702 of the Internal Revenue Code, except items that are not
7deductible under s. 71.21; plus guaranteed payments to partners under section 707
8(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (5b), (5e), and (5g);
10and plus or minus, as appropriate, transitional adjustments, depreciation
11differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
12excluding income, gain, loss, and deductions from farming. "Net business income,"
13with respect to a natural person, estate, or trust, means profit from a trade or
14business for federal income tax purposes and includes net income derived as an
15employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
AB892-ASA2, s. 15 16Section 15. Nonstatutory provisions.
AB892-ASA2,8,1717 (1) Internet equipment credit and exemption program.
AB892-ASA2,8,2118 (a) Not later than 30 days after the effective date of this subsection, the
19department of commerce shall implement a program for certifying businesses as
20eligible for tax credits and exemptions under sections 71.07 (5e), 71.28 (5e), 71.47
21(5e), and 77.54 (48) of the statutes.
AB892-ASA2,9,822 (b) If the department of commerce certifies a business as eligible under
23paragraph (a), the department shall determine the maximum amount of tax credits
24and exemptions that the business may claim, subject to paragraph (c). The
25department of commerce may not allocate tax credits and exemptions to a business

1unless the allocation of tax credits and exemptions to the business is likely to
2increase the availability of broadband Internet service in areas of this state that are
3not served by a broadband Internet service provider or are served by not more than
4one broadband Internet service provider, as determined by the department. The
5total amount of tax credits and exemptions allocated to all eligible businesses may
6not exceed $7,500,000. The department of commerce shall complete the
7certifications and determinations under this paragraph and paragraph (a) not later
8than the first day of the 7th month after the effective date of this subsection.
AB892-ASA2,9,239 (c) Not later than 10 days after the department of commerce completes the
10certifications and determinations under paragraphs (a ) and (b), the department of
11commerce shall submit to the joint committee on finance a report identifying the
12businesses certified under this subsection and the maximum amount of tax credits
13and exemptions each business may claim. If the cochairpersons of the committee do
14not notify the department of commerce within 14 working days after the department
15of commerce submits the report that the committee has scheduled a meeting to
16review the department of commerce's certifications and determinations, the
17department of commerce shall notify the department of revenue of the department
18of commerce's certifications and determination. If, within 14 working days after the
19department of commerce submits the report, the cochairpersons of the committee
20notify the department of commerce that the committee has scheduled a meeting to
21review the proposal, the department of commerce may not notify the department of
22revenue of the department of commerce's certifications and determinations unless
23one of the following is true:
AB892-ASA2,9,25 241. The committee approves the department of commerce's certifications and
25determinations.
AB892-ASA2,10,3
12. The committee does not hold a meeting to review the proposal within 30 days
2after the cochairpersons notify the department of commerce that a meeting has been
3scheduled.
AB892-ASA2,10,154 (d) Notwithstanding section 227.24 of the statutes, the department of
5commerce may promulgate emergency rules necessary to administer this subsection.
6Notwithstanding section 227.24 (1) (c) and (2) of the statutes, emergency rules
7promulgated under this subsection remain in effect until the department of
8commerce notifies the department of revenue of the department of commerce's
9certifications and determinations, or the first day of the 13th month after the
10effective date of this subsection, whichever is sooner. Notwithstanding section
11227.24 (1) (a) and (3) of the statutes, the department of commerce is not required to
12provide evidence that promulgating a rule under this subsection as an emergency
13rule is necessary for the preservation of the public peace, health, safety, or welfare
14and is not required to provide a finding of emergency for a rule promulgated under
15this subsection.
AB892-ASA2, s. 16 16Section 16. Effective date.
AB892-ASA2,10,1817 (1) The treatment of section 77.54 (48) of the statutes takes effect on the first
18day of the 2nd month beginning after publication.
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