Amendment ASA1-AB75

AB75-ASA1, s. 1544 Section 1544. 71.05 (24) of the statutes is created to read:

AB75-ASA1,777,3 71.05 (24) Income tax deferral; long-term capital assets. (a) In this subsection:

AB75-ASA1,777,6 1. "Claimant" means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation.

AB75-ASA1,777,7 2. "Financial institution" has the meaning given in s. 69.30 (1) (b).

AB75-ASA1,777,10 3. "Long-term capital gain" means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code.

AB75-ASA1,777,12 4. "Qualified new business venture" means a business certified by the department of commerce under s. 560.208.

AB75-ASA1,777,15 (b) For taxable years beginning after December 31, 2010, a claimant may subtract from federal adjusted gross income any amount, up to $10,000,000, of a long-term capital gain if the claimant does all of the following:

AB75-ASA1,777,16 1. Deposits the gain into a segregated account in a financial institution.

AB75-ASA1,777,19 2. Within 180 days after the sale of the asset that generated the gain, invests all of the proceeds in the account described under subd. 1. in a qualified new business venture.

AB75-ASA1,777,25 3. After making the investment as described under subd. 2., notifies the department, on a form prepared by the department, that the claimant will not declare on the claimant's income tax return the gain described under subd. 1. because the claimant has reinvested the capital gain as described under subd. 2. The form shall be sent to the department along with the claimant's income tax return for the year to which the claim relates.

AB75-ASA1,778,3 (c) The basis of the investment described in par. (b) 2. shall be calculated by subtracting the gain described in par. (b) 1. from the amount of the investment described in par. (b) 2.

AB75-ASA1,778,6 (d) If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain described under par. (b) 1. to net capital gains and losses, as described under sub. (10) (c).

AB75-ASA1, s. 1545 Section 1545. 71.06 (1p) (d) of the statutes is amended to read:

AB75-ASA1,778,9 71.06 (1p) (d) On all taxable income exceeding $112,500 but not exceeding $225,000, 6.75%.

AB75-ASA1, s. 1546 Section 1546. 71.06 (1p) (e) of the statutes is created to read:

AB75-ASA1,778,11 71.06 (1p) (e) On all taxable income exceeding $225,000, 7.75 percent.

AB75-ASA1, s. 1547 Section 1547. 71.06 (2) (g) 4. of the statutes is amended to read:

AB75-ASA1,778,14 71.06 (2) (g) 4. On all taxable income exceeding $150,000 but not exceeding $300,000, 6.75%.

AB75-ASA1, s. 1548 Section 1548. 71.06 (2) (g) 5. of the statutes is created to read:

AB75-ASA1,778,16 71.06 (2) (g) 5. On all taxable income exceeding $300,000, 7.75 percent.

AB75-ASA1, s. 1549 Section 1549. 71.06 (2) (h) 4. of the statutes is amended to read:

AB75-ASA1,778,19 71.06 (2) (h) 4. On all taxable income exceeding $75,000 but not exceeding $150,000, 6.75%.

AB75-ASA1, s. 1550 Section 1550. 71.06 (2) (h) 5. of the statutes is created to read:

AB75-ASA1,778,21 71.06 (2) (h) 5. On all taxable income exceeding $150,000, 7.75 percent.

AB75-ASA1, s. 1551 Section 1551. 71.06 (2e) of the statutes is renumbered 71.06 (2e) (a) and amended to read:

AB75-ASA1,779,23 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), and (2) (e), (f), (g) 1. to 3., and (h) 1. to 3., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this subsection paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection paragraph and incorporate the changes into the income tax forms and instructions.

AB75-ASA1, s. 1552 Section 1552. 71.06 (2e) (b) of the statutes is created to read:

AB75-ASA1,780,17 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d) and (2) (g) 4. and (h) 4., and the dollar amount in the top bracket under subs. (1p) (e) and (2) (g) 5. and (h) 5., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB75-ASA1, s. 1554 Section 1554. 71.07 (2fd) of the statutes is repealed.

AB75-ASA1, s. 1555 Section 1555. 71.07 (3m) (a) 1. (intro.) of the statutes is amended to read:

AB75-ASA1,780,22 71.07 (3m) (a) 1. (intro.) "Claimant" means an owner of farmland, as defined in s. 91.01 (9), 2007 stats., of farmland domiciled in this state during the entire year for which a credit under this subsection is claimed, except as follows:

AB75-ASA1, s. 1556 Section 1556. 71.07 (3m) (a) 3. of the statutes is amended to read:

AB75-ASA1,781,8 71.07 (3m) (a) 3. "Farmland" means 35 or more acres of real property, exclusive of improvements, in this state, in agricultural use, as defined in s. 91.01 (1), 2007 stats., and owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subsection is claimed if the farm of which the farmland is a part, during that year, produced not less than $6,000 in gross farm profits resulting from agricultural use, as defined in s. 91.01 (1), 2007 stats., or if the farm of which the farmland is a part, during that year and the 2 years immediately preceding that year, produced not less than $18,000 in such profits, or if at least 35 acres of the farmland, during all or part of that year, was enrolled in the conservation reserve program under 16 USC 3831 to 3836.

AB75-ASA1, s. 1557 Section 1557. 71.07 (3m) (a) 4. of the statutes is amended to read:

AB75-ASA1,781,15 71.07 (3m) (a) 4. "Gross farm profits" means gross receipts, excluding rent, from agricultural use, as defined in s. 91.01 (1), 2007 stats., including the fair market value at the time of disposition of payments in kind for placing land in federal programs or payments from the federal dairy termination program under 7 USC 1446 (d), less the cost or other basis of livestock or other items purchased for resale which are sold or otherwise disposed of during the taxable year.

AB75-ASA1, s. 1558 Section 1558. 71.07 (3m) (e) of the statutes is created to read:

AB75-ASA1,781,18 71.07 (3m) (e) Sunset. No new claim may be filed under this subsection for a taxable year that begins after December 31, 2009.

AB75-ASA1, s. 1569 Section 1569. 71.07 (3q) of the statutes is created to read:

AB75-ASA1,781,20 71.07 (3q) Jobs tax credit. (a) Definitions. In this subsection:

AB75-ASA1,781,22 1. "Claimant" means a person certified to receive tax benefits under s. 560.2055 (2).

AB75-ASA1,781,24 2. "Eligible employee" means an eligible employee under s. 560.2055 (1) (b) who satisfies the wage requirements under s. 560.2055 (3) (a) or (b).

AB75-ASA1,782,3 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.2055, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the taxes imposed under s. 71.02 any of the following.

AB75-ASA1,782,6 1. The amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined by the department of commerce under s. 560.2055.

AB75-ASA1,782,9 2. The amount of the costs incurred by the claimant in the taxable year, as determined under s. 560.2055, to undertake the training activities described under s. 560.2055 (3) (c).

AB75-ASA1,782,17 (c) Limitations. 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 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.

AB75-ASA1,782,20 2. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.2055 (2).

AB75-ASA1,782,22 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75-ASA1,783,2 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bb).

AB75-ASA1, s. 1571 Section 1571. 71.07 (3s) (a) 1. of the statutes is amended to read:

AB75-ASA1,783,5 71.07 (3s) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.

AB75-ASA1, s. 1572 Section 1572. 71.07 (5) (a) 3. of the statutes is amended to read:

AB75-ASA1,783,9 71.07 (5) (a) 3. Casualty and theft deductions under section 165 (c) (3) of the internal revenue code, except for casualty losses that are directly related to a presidentially declared disaster under 26 USC 7508A.

AB75-ASA1, s. 1575 Section 1575. 71.07 (5b) (d) 3. of the statutes is created to read:

AB75-ASA1,783,15 71.07 (5b) (d) 3. For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB75-ASA1, s. 1579 Section 1579. 71.07 (5d) (d) 1. of the statutes is amended to read:

AB75-ASA1,783,21 71.07 (5d) (d) 1. If For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than one year 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB75-ASA1, s. 1579x Section 1579x. 71.07 (5f) of the statutes is repealed and recreated to read:

AB75-ASA1,783,23 71.07 (5f) Film production services credit. (a) Definitions. In this subsection:

AB75-ASA1,784,9 1. "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for a production that is less than 30 minutes. "Accredited production" also means an electronic game, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. "Accredited production" does not include any of the following, regardless of the production costs:

AB75-ASA1,784,11 a. News, current events, or public programming or a program that includes weather or market reports.

AB75-ASA1,784,12 b. A talk show.

AB75-ASA1,784,13 c. A production with respect to a questionnaire or contest.

AB75-ASA1,784,14 d. A sports event or sports activity.

AB75-ASA1,784,15 e. A gala presentation or awards show.

AB75-ASA1,784,16 f. A finished production that solicits funds.

AB75-ASA1,784,19 g. A production for which the production company is required under 18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.

AB75-ASA1,784,21 h. A production produced primarily for industrial, corporate, or institutional purposes.

AB75-ASA1,784,22 2. "Claimant" means a person who files a claim under this subsection.

AB75-ASA1,785,6 3. "Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce. "Production expenditures" do not include salary, wages, or labor-related contract payments.

AB75-ASA1,785,9 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 any of the following amounts:

AB75-ASA1,785,19 1. An amount equal to 25 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000. A claimant may claim an additional amount equal to 3 percent of any salary, wages, or contract payments described in this subdivision if the individual who received the salary, wages, or contract payments was also living in an economically distressed area of this state, as determined by the department of commerce under s. 560.706 (2) (e), at the time that the individual was paid.

AB75-ASA1,786,2 2. An amount equal to 20 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals who were not residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000 or paid as above-the-line expenses to individuals such as nontechnical crew members, producers, writers, casting directors, and actors.

AB75-ASA1,786,4 3. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.

AB75-ASA1,786,7 (c) Limitations. 1. A claimant may not claim a credit under this subsection if less than 35 percent of the total budget for the accredited production is spent in this state.

AB75-ASA1,786,11 2. The total amount of the credits that a claimant may claim under par. (b) 2. in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages, or labor-related contract payments paid to each individual described in par. (b) 2. in the taxable year.

AB75-ASA1,786,14 3. No credit may be claimed under par. (b) 3. for the purchase of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) the sale of which is not sourced to this state, as provided under s. 77.522.

AB75-ASA1,786,16 4. The maximum amount of all credits that a claimant may claim under this subsection for each accredited production is $10,000,000.

AB75-ASA1,786,21 5. The maximum amount of the credits that may be claimed under this subsection and sub. (5h) and ss. 71.28 (5f) and (5h) and 71.47 (5f) and (5h) in fiscal year 2009-10 is $1,500,000. The maximum amount of the credits that may be claimed under this subsection and sub. (5h) and ss. 71.28 (5f) and (5h) and 71.47 (5f) and (5h) in fiscal year 2010-11 is $1,500,000.

AB75-ASA1,787,3 6. No credit may be allowed under this subsection unless the claimant files an application with the department of commerce, at the time and in the manner prescribed by the department of commerce, and the department of commerce approves the application. The claimant shall submit a fee with the application in an amount equal to 2 percent of the claimant's budgeted production expenditures or to $5,000, whichever is less. The claimant shall submit a copy of the approved application with the claimant's return.

AB75-ASA1,787,11 7. 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 interest.

AB75-ASA1,787,13 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.

AB75-ASA1,787,18 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08 or no tax is due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bm).

AB75-ASA1, s. 1580x Section 1580x. 71.07 (5h) (a) 2. of the statutes is amended to read:

AB75-ASA1,787,23 71.07 (5h) (a) 2. "Film production company" means an entity that exclusively creates films, videos, electronic games, broadcast advertisement, or television productions, not including the productions described under s. 71.07 accredited productions, as defined in sub. (5f) (a) 1. a. to h.

AB75-ASA1, s. 1580yb Section 1580yb. 71.07 (5h) (b) (intro.) of the statutes is amended to read:

AB75-ASA1,788,7 71.07 (5h) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007 2008, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the taxes, for the first 3 taxable years that the claimant is doing business in this state as a film production company, or 71.08 an amount that is equal to 15 percent of the following that the claimant paid in the taxable year to establish or operate a film production company in this state:

AB75-ASA1, s. 1580yc Section 1580yc. 71.07 (5h) (b) 1. of the statutes is amended to read:

AB75-ASA1,788,12 71.07 (5h) (b) 1. The purchase price of depreciable, tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), if the sale of the tangible personal property, items, property, or goods is sourced to this state under s. 77.522.

AB75-ASA1, s. 1580ye Section 1580ye. 71.07 (5h) (c) 1. of the statutes is amended to read: