LRBs0588/1
JK&CTS:lmk/wlj/jld:rs
2005 - 2006 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 2,
TO 2005 SENATE BILL 483
February 27, 2006 - Offered by Senator Kanavas.
SB483-SSA2,1,5
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and
to create 71.07 (5e), 71.10 (4) (gy), 71.28 (5e), 71.30
3(3) (es), 71.47 (5e), 71.49 (1) (es), 77.51 (6m) and 77.54 (48) of the statutes;
4relating to: an income and franchise tax credit and a sales and use tax
5exemption for Internet equipment used in the broadband market.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB483-SSA2, s. 1
6Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB483-SSA2,1,117
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
8(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
and (5d)
, and (5e) 9and not passed through by a partnership, limited liability company, or tax-option
10corporation that has added that amount to the partnership's, company's, or
11tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
SB483-SSA2,2,22
71.07
(5e) Internet equipment credit. (a)
Definitions. In this subsection:
SB483-SSA2,2,33
1. "Claimant" means a person who files a claim under this subsection.
SB483-SSA2,2,64
2. "Internet equipment used in the broadband market" means equipment that
5is capable of transmitting data packets or Internet signals at speeds of at least 200
6kilobits per second in either direction.
SB483-SSA2,2,127
(b)
Filing claims. Subject to the limitations provided in this subsection,
8beginning in the first taxable year following the taxable year in which the claimant
9claims an exemption under s. 77.54 (48), a claimant may claim as a credit against the
10taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each
11taxable year for 2 years, the amount certified by the department of commerce that
12the claimant claimed as an exemption under s. 77.54 (48).
SB483-SSA2,2,1413
(c)
Limitations. 1. No credit may be allowed under this subsection unless the
14claimant satisfies the requirements under s. 77.54 (48).
SB483-SSA2,2,2215
2. Partnerships, limited liability companies, and tax-option corporations may
16not claim the credit under this subsection, but the eligibility for, and the amount of,
17the credit are based on their payment of the amounts described under par. (b). A
18partnership, limited liability company, or tax-option corporation shall compute the
19amount of credit that each of its partners, members, or shareholders may claim and
20shall provide that information to each of them. Partners, members of limited liability
21companies, and shareholders of tax-option corporations may claim the credit in
22proportion to their ownership interests.
SB483-SSA2,2,2523
3. The total amount of the credits and exemptions that may be claimed by all
24claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48) is
25$7,500,000, as determined by the department of commerce.
SB483-SSA2,3,2
1(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
2s. 71.28 (4), applies to the credit under this subsection.
SB483-SSA2,3,44
71.10
(4) (gy) Internet equipment credit under s. 71.07 (5e).
SB483-SSA2,3,97
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
8(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
(5e), and (5g) and passed
9through to partners shall be added to the partnership's income.
SB483-SSA2,4,412
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).
SB483-SSA2,4,66
71.28
(5e) Internet equipment credit. (a)
Definitions. In this subsection:
SB483-SSA2,4,77
1. "Claimant" means a person who files a claim under this subsection.
SB483-SSA2,4,108
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.
SB483-SSA2,4,1611
(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).
SB483-SSA2,4,1817
(c)
Limitations. 1. No credit may be allowed under this subsection unless the
18claimant satisfies the requirements under s. 77.54 (48).
SB483-SSA2,5,219
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.
SB483-SSA2,5,53
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.
SB483-SSA2,5,76
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
7sub. (4), applies to the credit under this subsection.
SB483-SSA2,5,99
71.30
(3) (es) Internet equipment credit under s. 71.28 (5e).
SB483-SSA2,5,1412
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.
SB483-SSA2,5,2217
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).
SB483-SSA2,5,2424
71.47
(5e) Internet equipment credit. (a)
Definitions. In this subsection:
SB483-SSA2,5,2525
1. "Claimant" means a person who files a claim under this subsection.
SB483-SSA2,6,3
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.
SB483-SSA2,6,94
(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).
SB483-SSA2,6,1110
(c)
Limitations. 1. No credit may be allowed under this subsection unless the
11claimant satisfies the requirements under s. 77.54 (48).
SB483-SSA2,6,1912
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.
SB483-SSA2,6,2220
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.
SB483-SSA2,6,2423
(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.
SB483-SSA2,7,1
171.49
(1) (es) Internet equipment credit under s. 71.47 (5e).
