Amendment CSA1-SB40

SB40-CSA1,1001,8 71.47 (5b) (d) 2. The Wisconsin adjusted basis of any investment for which a credit is claimed under par. (b) shall be reduced by the amount of the credit that is offset against Wisconsin income taxes. The Wisconsin basis of a partner's interest in a partnership, a member's interest in a limited liability company, or stock in a tax-option corporation shall be adjusted to reflect adjustments made under this subdivision.

SB40-CSA1, s. 2112 Section 2112. 71.47 (5h) (a) 4. of the statutes is amended to read:

SB40-CSA1,1001,17 71.47 (5h) (a) 4. "Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 of the Internal Revenue Code for purposes of this subsection.

SB40-CSA1, s. 2113 Section 2113. 71.47 (5h) (c) 2. of the statutes is amended to read:

SB40-CSA1,1001,23 71.47 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.

SB40-CSA1, s. 2114 Section 2114. 71.47 (5h) (c) 3. of the statutes is amended to read:

SB40-CSA1,1002,4 71.47 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2007, or if and the completed project is placed in service after December 31, 2007.

SB40-CSA1, s. 2115 Section 2115. 71.47 (5i) of the statutes is created to read:

SB40-CSA1,1002,7 71.47 (5i) Electronic medical records credit. (a) Definitions. In this subsection, "claimant" means a person who files a claim under this subsection.

SB40-CSA1,1002,14 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1).

SB40-CSA1,1002,17 (c) Limitations. 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (5i) and 71.28 (5i) in a taxable year is $10,000,000, as allocated under s. 560.204.

SB40-CSA1,1002,25 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 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.

SB40-CSA1,1003,2 (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.

SB40-CSA1, s. 2116 Section 2116. 71.47 (5j) of the statutes is created to read:

SB40-CSA1,1003,5 71.47 (5j) Ethanol and biodiesel fuel pump credit. (a) Definitions. In this subsection:

SB40-CSA1,1003,6 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).

SB40-CSA1,1003,7 2. "Claimant" means a person who files a claim under this subsection.

SB40-CSA1,1003,8 3. "Motor vehicle fuel" has the meaning given in s. 78.005 (13).

SB40-CSA1,1003,15 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2018, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the taxes, an amount that is equal to 25 percent of the amount that the claimant paid in the taxable year to install or retrofit pumps located in this state that dispense motor vehicle fuel consisting of at least 85 percent ethanol or at least 20 percent biodiesel fuel.

SB40-CSA1,1003,19 (c) Limitations. 1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is an amount that is equal to $5,000 for each service station for which the claimant has installed or retrofitted pumps as described under par. (b).

SB40-CSA1,1004,2 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 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.

SB40-CSA1,1004,4 (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.

SB40-CSA1, s. 2116m Section 2116m. 71.47 (5k) of the statutes is created to read:

SB40-CSA1,1004,7 71.47 (5k) Community rehabilitation program credit. (a) Definitions. In this subsection:

SB40-CSA1,1004,8 1. "Claimant" means a person who files a claim under this subsection.

SB40-CSA1,1004,13 2. "Community rehabilitation program" means a nonprofit entity, county, municipality, or state or federal agency that directly provides, or facilitates the provision of, vocational rehabilitation services to individuals who have disabilities to maximize the employment opportunities, including career advancement, of such individuals.

SB40-CSA1,1004,15 3. "Vocational rehabilitation services" include education, training, employment, counseling, therapy, placement, and case management.

SB40-CSA1,1004,18 4. "Work" includes production, packaging, assembly, food service, custodial service, clerical service, and other commercial activities that improve employment opportunities for individuals who have disabilities.

SB40-CSA1,1004,24 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after July 1, 2009, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to 5 percent of the amount the claimant paid in the taxable year to a community rehabilitation program to perform work for the claimant's business, pursuant to a contract.

SB40-CSA1,1005,4 (c) Limitations. 1. The maximum amount of the credit that any claimant may claim under this subsection in a taxable year is $25,000 for each community rehabilitation program for which the claimant enters into a contract to have the community rehabilitation program perform work for the claimant's business.

SB40-CSA1,1005,9 2. No credit may be claimed under this subsection unless the claimant submits with the claimant's return a form, as prescribed by the department of revenue, that verifies that the claimant has entered into a contract with a community rehabilitation program and that the program has received payment from the claimant for work provided by the program, consistent with par. (b).

SB40-CSA1,1005,17 3. 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 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.

SB40-CSA1,1005,19 (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.

SB40-CSA1, s. 2116n Section 2116n. 71.49 (1) (bn) of the statutes is created to read:

SB40-CSA1,1005,21 71.49 (1) (bn) Community rehabilitation program credit under s. 71.47 (5k).

SB40-CSA1, s. 2116s Section 2116s. 71.49 (1) (cn) of the statutes is created to read:

SB40-CSA1,1005,23 71.49 (1) (cn) Biodiesel fuel production credit under s. 71.47 (3h).

SB40-CSA1, s. 2118 Section 2118. 71.49 (1) (ds) of the statutes is created to read:

SB40-CSA1,1005,25 71.49 (1) (ds) Ethanol and biodiesel fuel pump credit under s. 71.47 (5j).

SB40-CSA1, s. 2119 Section 2119. 71.49 (1) (epa) of the statutes is created to read:

SB40-CSA1,1006,2 71.49 (1) (epa) Electronic medical records credit under s. 71.47 (5i).

SB40-CSA1, s. 2120 Section 2120. 71.49 (1) (epp) of the statutes is renumbered 71.49 (1) (eps) and amended to read:

SB40-CSA1,1006,5 71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.

SB40-CSA1, s. 2121 Section 2121. 71.49 (1) (f) of the statutes is amended to read:

SB40-CSA1,1006,11 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), enterprise zone jobs credit under s. 71.47 (3w), film production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments under s. 71.48.

SB40-CSA1, s. 2127 Section 2127. 71.738 (1d) of the statutes is repealed.

SB40-CSA1, s. 2128 Section 2128. 71.738 (2d) of the statutes is repealed.

SB40-CSA1, s. 2129 Section 2129. 71.74 (14) of the statutes is amended to read:

SB40-CSA1,1007,5 71.74 (14) Additional remedy to collect tax. The department may also proceed under s. 71.91 (5) for the collection of any additional assessment of income or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and before the same shall have become delinquent, when it has reasonable grounds to believe that the collection of such additional assessment will be jeopardized by delay. In such cases notice of the intention to so proceed shall be given by registered mail to the taxpayer, and the warrant of the department shall not issue if the taxpayer within 10 days after such notice furnishes a bond in such amount, not exceeding double the amount of the tax, and with such sureties as the department shall approve, conditioned upon the payment of so much of the additional taxes as shall finally be determined to be due, together with interest thereon as provided by s. 71.82 (1) (a). Nothing in this subsection shall affect the review of additional assessments provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and any amounts collected under this subsection shall be deposited with the secretary of administration department and disbursed after final determination of the taxes as are amounts deposited under s. 71.90 (2).

SB40-CSA1, s. 2130 Section 2130. 71.765 of the statutes is repealed.

SB40-CSA1, s. 2131 Section 2131. 71.775 (3) (a) 2. of the statutes is amended to read:

SB40-CSA1,1007,11 71.775 (3) (a) 2. The partner, member, shareholder, or beneficiary has no Wisconsin income other than his or her partner's, member's, shareholder's, or beneficiary's share of income from the pass-through entity that is attributable to this state and his or her share of such income is less than $1,000.

SB40-CSA1, s. 2132 Section 2132. 71.775 (3) (a) 3. of the statutes is created to read:

SB40-CSA1,1007,20 71.775 (3) (a) 3. The nonresident partner, member, shareholder, or beneficiary files an affidavit with the department, in the form and manner prescribed by the department, whereby the nonresident partner, member, shareholder, or beneficiary agrees to file a Wisconsin income or franchise tax return and be subject to the personal jurisdiction of the department, the tax appeals commission, and the courts of this state for the purpose of determining and collecting Wisconsin income and franchise taxes, including estimated tax payments, together with any related interest and penalties.

SB40-CSA1, s. 2133 Section 2133. 71.775 (4) (b) 2. of the statutes is amended to read:

SB40-CSA1,1008,8 71.775 (4) (b) 2. A pass-through entity that pays the tax withheld under sub. (2) as provided under subd. 1. is not subject to an underpayment of estimated tax under s. 71.09 or 71.29, if 90 percent of the tax that is due for the current taxable year is paid by the unextended due date or if 100 percent of the tax that is due for the taxable year immediately preceding the current taxable year is paid by the unextended due date and the taxable year immediately preceding the current taxable year was a 12-month period. Interest Except as provided in par. (f), interest at the rate of 12 percent shall be imposed on the unpaid amount of the tax withheld due under sub. (2) during any extension period and interest at the rate of 18 percent shall be imposed on the unpaid amount of the tax withheld due under sub. (2) for the period beginning with the extended due date and ending with the date that the unpaid amount is paid in full.

SB40-CSA1, s. 2134 Section 2134. 71.775 (4) (d) of the statutes is amended to read:

SB40-CSA1,1008,18 71.775 (4) (d) A nonresident partner, member, shareholder, or beneficiary of a pass-through entity may claim a credit, as prescribed by the department, on his or her Wisconsin income or franchise tax return for the amount withheld under sub. (2) on his or her behalf for the tax period for which the income of the pass-through entity is reported. For purposes of this paragraph determining whether interest under s. 71.84 applies to a nonresident partner, member, shareholder, or beneficiary, the amount withheld under sub. (2) is considered to be paid on the last day of the pass-through entity's taxable year for which the tax is paid in 4 equal quarterly installments.

SB40-CSA1, s. 2135 Section 2135. 71.775 (4) (f) of the statutes is amended to read:

SB40-CSA1,1009,5 71.775 (4) (f) If a pass-through entity subject to withholding under this section fails to withhold pay the tax as required by this section, the pass-through entity shall be liable for any unpaid tax, interest, and penalties otherwise assessable to the nonresident partner, member, shareholder, or beneficiary with respect to income from the pass-through entity. If a nonresident partner, member, shareholder, or beneficiary of the pass-through entity files a return and pays the tax due, the pass-through entity shall not be liable for the tax, but shall be liable for any interest and penalties otherwise applicable for failure to withhold, as the penalty provided under ss. 71.82 (2) (d) and s. 71.83 (1) (a) 1. and for any interest otherwise assessable to the nonresident partner, member, shareholder, or beneficiary with respect to income from the pass-through entity.

SB40-CSA1, s. 2135e Section 2135e. 71.78 (2) of the statutes is amended to read:

SB40-CSA1,1010,6 71.78 (2) Disclosure of net tax. The department shall make available upon suitable forms prepared by the department information setting forth the net Wisconsin income tax, Wisconsin franchise tax, or Wisconsin gift tax reported as paid or payable in the returns filed by any individual or corporation, and any amount of delinquent taxes owed, as described in s. 73.03 (62), by any such individual or corporation, for any individual year upon request. When making available information setting forth the delinquent taxes owed by an individual or corporation, the information shall include interest, penalties, fees, and costs, which are unpaid for more than 90 days after all appeal rights have expired, except that such information may not be provided for any person who has reached an agreement or compromise with the department, or the department of justice, under s. 71.92 and is in compliance with that agreement, regarding the payment of delinquent taxes, or the name of any person who is protected by a stay that is in effect under the Federal Bankruptcy Code. Before the request is granted, the person desiring to obtain the information shall prove his or her identity and shall be required to sign a statement setting forth the person's address and reason for making the request and indicating that the person understands the provisions of this section with respect to the divulgement, publication or dissemination of information obtained from returns as provided in sub. (1). The use of a fictitious name is a violation of this section. Within 24 hours after any information from any such tax return has been so obtained, the department shall mail to the person from whose return the information has been obtained a notification which shall give the name and address of the person obtaining the information and the reason assigned for requesting the information. The department shall collect from the person requesting the information a fee of $4 for each return.

SB40-CSA1, s. 2136 Section 2136. 71.80 (20) of the statutes is amended to read:

SB40-CSA1,1010,13 71.80 (20) Magnetic media Electronic filing. If the internal revenue service requires a person to file information returns or wage statements on magnetic media or in other machine-readable form electronically for federal income tax purposes, the person shall also file the comparable state information returns or wage statements on magnetic media or in other machine-readable form electronically with the department of revenue for income or franchise tax purposes.

SB40-CSA1, s. 2137 Section 2137. 71.805 of the statutes is created to read:

SB40-CSA1,1010,16 71.805 Tax avoidance transactions voluntary compliance program. (1) Definitions. In this section:

SB40-CSA1,1010,23 (a) "Tax avoidance transaction" means a transaction, plan, or arrangement devised for the principal purpose of avoiding federal or Wisconsin income or franchise tax. "Tax avoidance transaction" includes a listed transaction as provided under U.S. department of the treasury regulations as of the effective date of this paragraph .... [revisor inserts date], and may include a transaction, as determined by the department, that provides a tax benefit for Wisconsin income or franchise tax purposes without providing a similar benefit for federal income tax purposes.

SB40-CSA1,1011,3 (b) "Taxpayer" means a person who is subject to the taxes imposed under this chapter and who has a tax liability attributable to using a tax avoidance transaction for any taxable year beginning before January 1, 2007.

SB40-CSA1,1011,5 (2) Penalty waiver or abatement. All of the following apply with regard to a taxpayer who satisfies the conditions under sub. (3):

SB40-CSA1,1011,9 (a) Except as provided under sub. (4) (b), the department shall waive or abate all penalties that are applicable to the underreporting or underpayment of Wisconsin income or franchise taxes attributable to using a tax avoidance transaction for any taxable year for which the taxpayer satisfies the conditions under sub. (3).

SB40-CSA1,1011,12 (b) The department shall not seek a criminal prosecution against the taxpayer with respect to using a tax avoidance transaction for any taxable year for which the taxpayer satisfies the conditions under sub. (3).

SB40-CSA1,1011,17 (3) Taxpayer eligibility. A taxpayer is eligible for the benefits described under sub. (2) (a) and (b), if, during the period beginning on the first day of the 3rd month beginning after publication .... [revisor inserts date], and ending on the last day of the 7th month beginning after publication .... [revisor inserts date], the taxpayer does the following:

SB40-CSA1,1011,23 (a) Files an amended Wisconsin tax return for each taxable year for which the taxpayer has previously filed a Wisconsin tax return that uses a tax avoidance transaction to underreport the taxpayer's Wisconsin income or franchise tax liability and the amended return reports the total Wisconsin net income and tax for the taxable year, computed without regard to any tax avoidance transaction and without regard to any other adjustment that is unrelated to any tax avoidance transaction.

SB40-CSA1,1012,6 (b) Pays, in full, for each taxable year for which an amended return is filed under par. (a), the entire amount of Wisconsin income or franchise tax and interest due that is attributable to using a tax avoidance transaction, except that the secretary of revenue may enter into an agreement with the taxpayer to make payments in installments. A taxpayer who does not comply with an installment agreement provided under this paragraph is ineligible to receive the benefits described under sub. (2) (a) and (b) and the total amount of tax, interest, and penalties shall be immediately due and payable.

SB40-CSA1,1012,12 (4) Limitations and administration. (a) A taxpayer who receives the benefits described under sub. (2) may not file an appeal or a claim for credit or refund with respect to the tax avoidance transactions for the taxable years for which the taxpayer satisfied the conditions under sub. (3), except to the extent that a timely filed appeal or claim for a refund results from an adjustment to the taxpayer's federal income tax liability regarding such transactions.

SB40-CSA1,1012,17 (b) The department may not waive or abate a penalty as provided under sub. (2) (a) if the penalty relates to an amount of Wisconsin income and franchise tax that is attributable to a tax avoidance transaction and assessed and paid prior to the first day of the 3rd month beginning after publication .... [revisor inserts date], or after the last day of the 7th month beginning after publication .... [revisor inserts date].

SB40-CSA1, s. 2138 Section 2138. 71.81 of the statutes is created to read:

SB40-CSA1,1012,19 71.81 Disclosing reportable transactions. (1) Definitions. In this section:

SB40-CSA1,1012,25 (a) "Listed transaction" means any reportable transaction that is the same as, or substantially similar to, a transaction, plan, or arrangement specifically identified by the U.S. secretary of the treasury as a listed transaction, for purposes of section 6011 of the Internal Revenue Code and that is specifically identified by the U.S. secretary of the treasury as a listed transaction on or after the date the transaction occurred.

SB40-CSA1,1013,5 (b) "Material advisor" means any person who provides any material aid, assistance, or advice with respect to organizing, managing, promoting, selling, implementing, insuring, or carrying out any reportable transaction and who, directly or indirectly, derives gross income from providing such aid, assistance, or advice in an amount that exceeds the threshold amount.

SB40-CSA1,1013,10 (c) "Reportable transaction" means any transaction, plan, or arrangement, including a listed transaction, for which a taxpayer is required to submit information to the department because the taxpayer is required to disclose the transaction, plan, or arrangement for federal income tax purposes for the taxable year in which the transaction occurred, as provided under U.S. department of treasury regulations.

SB40-CSA1,1013,13 (d) "Tax shelter" means any entity, plan, or arrangement, if avoiding or evading federal income tax or Wisconsin income or franchise tax is a significant purpose of the entity, plan, or arrangement.

SB40-CSA1,1013,14 (e) "Threshold amount" means the following:

SB40-CSA1,1013,16 1. In the case of a reportable transaction, not including a listed transaction, from which the tax benefits are provided primarily to an individual, $50,000.

SB40-CSA1,1013,18 2. In the case of a listed transaction from which the tax benefits are provided primarily to an individual, $10,000.

SB40-CSA1,1013,21 3. In the case of a reportable transaction, not including a listed transaction, from which the tax benefits are provided primarily to an entity and not an individual, $250,000.

SB40-CSA1,1013,23 4. In the case of a listed transaction, from which the tax benefits are provided primarily to an entity and not an individual, $25,000.

SB40-CSA1,1014,16 (2) Disclosure. For each taxable year in which a taxpayer has participated in a reportable transaction, the taxpayer shall file with the department a copy of any form required by the internal revenue service for disclosing the reportable transaction for federal income tax purposes no later than 60 days after the date for which the taxpayer is required to file the form for federal income tax purposes, except that, if the taxpayer has filed a form with the internal revenue service on or before the effective date of this subsection .... [revisor inserts date], the taxpayer shall file a copy of the form with the department no later than the last day of the 7th month beginning after publication .... [revisor inserts date]. The department may require that forms filed with the department under this subsection be filed separately from this state's income or franchise tax return. This subsection applies to any reportable transaction entered into on or after January 1, 2001, or any reportable transaction entered into prior to January 1, 2001, that reduced the taxpayer's tax liability for taxable years beginning on or after January 1, 2001, for any taxable year for which the transaction remains undisclosed and for which the statute of limitations on assessment, including any extension provided under sub. (6), has not expired as of the date that is 60 days after the effective date of this subsection .... [revisor inserts date].

SB40-CSA1,1014,19 (3) Penalty for failing to disclose. (a) Any taxpayer who does not file the form under sub. (2) and who is required to file the form is subject to the following penalty: