SB103-SSA2,6,97 c. In the case of a generator, the control modules, fuel train, fuel scrubbing
8process, fuel mixers, generator, heat exchangers, exhaust train, and similar
9components.
SB103-SSA2,6,1110 2. "Internal combustion engine" includes substitute products such as fuel cell,
11electric, and hybrid drives.
SB103-SSA2,6,1712 3. "Vehicle" means any vehicle or frame, including parts, accessories, and
13component technologies, in which or on which an engine is mounted for use in mobile
14or stationary applications. "Vehicle" includes any truck, tractor, motorcycle,
15snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction
16equipment, lawn and garden maintenance equipment, automobile, van, sports
17utility vehicle, motor home, bus, or aircraft.
SB103-SSA2, s. 8 18Section 8. 71.28 (5) (ad) 2. of the statutes is created to read:
SB103-SSA2,7,519 71.28 (5) (ad) 2. For taxable years beginning after December 31, 2006, any
20corporation may credit against taxes otherwise due under this chapter an amount
21equal to 10 percent of the amount paid or incurred by that corporation during the
22taxable year to construct and equip new facilities or expand existing facilities used
23in this state for qualified research, as defined in section 41 of the Internal Revenue
24Code, except that "qualified research expenses" includes only expenses paid or
25incurred by the claimant for research related to designing internal combustion

1engines for vehicles, including expenses related to designing vehicles that are
2powered by such engines and improving production processes for such engines and
3vehicles. Eligible amounts include only amounts paid or incurred for tangible,
4depreciable property but do not include amounts paid or incurred for replacement
5property.
SB103-SSA2, s. 9 6Section 9. 71.47 (4) (a) of the statutes is renumbered 71.47 (4) (ad) 1. and
7amended to read:
SB103-SSA2,7,238 71.47 (4) (ad) Credit. 1. Any Except as provided in subd. 2., any corporation
9may credit against taxes otherwise due under this chapter an amount equal to 5%
105 percent of the amount obtained by subtracting from the corporation's qualified
11research expenses, as defined in section 41 of the internal revenue code Internal
12Revenue Code
, except that "qualified research expenses" includes only expenses
13incurred by the claimant, incurred for research conducted in this state for the taxable
14year, except that a taxpayer may elect the alternative computation under section 41
15(c) (4) of the Internal Revenue Code and that election applies until the department
16permits its revocation, except as provided in par. (af), and except that "qualified
17research expenses" does not include compensation used in computing the credit
18under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41
19(c) of the internal revenue code Internal Revenue Code, except that gross receipts
20used in calculating the base amount means gross receipts from sales attributable to
21Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d). Section 41 (h) of the internal
22revenue code
Internal Revenue Code does not apply to the credit under this
23paragraph.
SB103-SSA2, s. 10 24Section 10. 71.47 (4) (ab) of the statutes is created to read:
SB103-SSA2,7,2525 71.47 (4) (ab) Definitions. In this subsection:
SB103-SSA2,8,1
11. "Frame" includes:
SB103-SSA2,8,22 a. Every part of a motorcycle, except the tires.
SB103-SSA2,8,43 b. In the case of a truck, the control system and the fuel and drive train,
4excluding any comfort features located in the cab or the tires.
SB103-SSA2,8,75 c. In the case of a generator, the control modules, fuel train, fuel scrubbing
6process, fuel mixers, generator, heat exchangers, exhaust train, and similar
7components.
SB103-SSA2,8,98 2. "Internal combustion engine" includes substitute products such as fuel cell,
9electric, and hybrid drives.
SB103-SSA2,8,1510 3. "Vehicle" means any vehicle or frame, including parts, accessories, and
11component technologies, in which or on which an engine is mounted for use in mobile
12or stationary applications. "Vehicle" includes any truck, tractor, motorcycle,
13snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction
14equipment, lawn and garden maintenance equipment, automobile, van, sports
15utility vehicle, motor home, bus, or aircraft.
SB103-SSA2, s. 11 16Section 11. 71.47 (4) (ad) 2. of the statutes is created to read:
SB103-SSA2,9,817 71.47 (4) (ad) 2. For taxable years beginning after December 31, 2006, any
18corporation may credit against taxes otherwise due under this chapter an amount
19equal to 10 percent of the amount obtained by subtracting from the corporation's
20qualified research expenses, as defined in section 41 of the Internal Revenue Code,
21except that "qualified research expenses" includes only expenses incurred by the
22claimant for research related to designing internal combustion engines for vehicles,
23including expenses related to designing vehicles that are powered by such engines
24and improving production processes for such engines and vehicles, incurred for
25research conducted in this state for the taxable year, except that a taxpayer may elect

1the alternative computation under section 41 (c) (4) of the Internal Revenue Code
2and that election applies until the department permits its revocation, except as
3provided in par. (af), and except that "qualified research expenses" does not include
4compensation used in computing the credit under subs. (1dj) and (1dx), the
5corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code,
6except that gross receipts used in calculating the base amount means gross receipts
7from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d). Section
841 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.
SB103-SSA2, s. 12 9Section 12. 71.47 (4) (af) of the statutes is created to read:
SB103-SSA2,9,1310 71.47 (4) (af) Computation. If in any taxable year a corporation claims a credit
11under both par. (ad) 1. and 2., the corporation may use a different computation
12method under par. (ad) 2. than it uses under par. (ad) 1. and may choose to change
13the computation method once for each credit without the department's approval.
SB103-SSA2, s. 13 14Section 13. 71.47 (4) (am) of the statutes is amended to read:
SB103-SSA2,9,2515 71.47 (4) (am) Development zone additional research credit. In addition to the
16credit under par. (a) (ad), any corporation may credit against taxes otherwise due
17under this chapter an amount equal to 5% 5 percent of the amount obtained by
18subtracting from the corporation's qualified research expenses, as defined in section
1941 of the internal revenue code Internal Revenue Code, except that "qualified
20research expenses" include only expenses incurred by the claimant in a development
21zone under subch. VI of ch. 560, except that a taxpayer may elect the alternative
22computation under section 41 (c) (4) of the Internal Revenue Code and that election
23applies until the department permits its revocation and except that "qualified
24research expenses" do not include compensation used in computing the credit under
25sub. (1dj) nor research expenses incurred before the claimant is certified for tax

1benefits under s. 560.765 (3), the corporation's base amount, as defined in section 41
2(c) of the internal revenue code Internal Revenue Code, in a development zone,
3except that gross receipts used in calculating the base amount means gross receipts
4from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d) and
5research expenses used in calculating the base amount include research expenses
6incurred before the claimant is certified for tax benefits under s. 560.765 (3), in a
7development zone, if the claimant submits with the claimant's return a copy of the
8claimant's certification for tax benefits under s. 560.765 (3) and a statement from the
9department of commerce verifying the claimant's qualified research expenses for
10research conducted exclusively in a development zone. The rules under s. 73.03 (35)
11apply to the credit under this paragraph. The rules under sub. (1di) (f) and (g) as they
12apply to the credit under that subsection apply to claims under this paragraph.
13Section 41 (h) of the internal revenue code Internal Revenue Code does not apply to
14the credit under this paragraph. No credit may be claimed under this paragraph for
15taxable years that begin on January 1, 1998, or thereafter. Credits under this
16paragraph for taxable years that begin before January 1, 1998, may be carried
17forward to taxable years that begin on January 1, 1998, or thereafter.
SB103-SSA2, s. 14 18Section 14. 71.47 (5) (a) of the statutes is renumbered 71.47 (5) (ad) 1. and
19amended to read:
SB103-SSA2,11,220 71.47 (5) (ad) Credit. 1. For Except as provided in subd. 2., for taxable year 1986
21and subsequent years, any corporation may credit against taxes otherwise due under
22this chapter an amount equal to 5% 5 percent of the amount paid or incurred by that
23corporation during the taxable year to construct and equip new facilities or expand
24existing facilities used in this state for qualified research, as defined in section 41 of
25the internal revenue code Internal Revenue Code. Eligible amounts include only

1amounts paid or incurred for tangible, depreciable property but do not include
2amounts paid or incurred for replacement property.
SB103-SSA2, s. 15 3Section 15. 71.47 (5) (ab) of the statutes is created to read:
SB103-SSA2,11,44 71.47 (5) (ab) Definitions. In this subsection:
SB103-SSA2,11,55 1. "Frame" includes:
SB103-SSA2,11,66 a. Every part of a motorcycle, except the tires.
SB103-SSA2,11,87 b. In the case of a truck, the control system and the fuel and drive train,
8excluding any comfort features located in the cab or the tires.
SB103-SSA2,11,119 c. In the case of a generator, the control modules, fuel train, fuel scrubbing
10process, fuel mixers, generator, heat exchangers, exhaust train, and similar
11components.
SB103-SSA2,11,1312 2. "Internal combustion engine" includes substitute products such as fuel cell,
13electric, and hybrid drives.
SB103-SSA2,11,1914 3. "Vehicle" means any vehicle or frame, including parts, accessories, and
15component technologies, in which or on which an engine is mounted for use in mobile
16or stationary applications. "Vehicle" includes any truck, tractor, motorcycle,
17snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction
18equipment, lawn and garden maintenance equipment, automobile, van, sports
19utility vehicle, motor home, bus, or aircraft.
SB103-SSA2, s. 16 20Section 16. 71.47 (5) (ad) 2. of the statutes is created to read:
SB103-SSA2,12,721 71.47 (5) (ad) 2. For taxable years beginning after December 31, 2006, any
22corporation may credit against taxes otherwise due under this chapter an amount
23equal to 10 percent of the amount paid or incurred by that corporation during the
24taxable year to construct and equip new facilities or expand existing facilities used
25in this state for qualified research, as defined in section 41 of the Internal Revenue

1Code, except that "qualified research expenses" includes only expenses paid or
2incurred by the claimant for research related to designing internal combustion
3engines for vehicles, including expenses related to designing vehicles that are
4powered by such engines and improving production processes for such engines and
5vehicles. Eligible amounts include only amounts paid or incurred for tangible,
6depreciable property but do not include amounts paid or incurred for replacement
7property.
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