Amendment ASA1-AB40

AB40-ASA1, s. 1857 Section 1857. 71.07 (3w) (bm) 3. of the statutes is amended to read:

AB40-ASA1,723,12 71.07 (3w) (bm) 3. In addition to the credits under par. (b) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., 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 up to 10 percent of the claimant's significant capital expenditures, as determined by the department of commerce under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB40-ASA1, s. 1858 Section 1858. 71.07 (3w) (bm) 4. of the statutes is amended to read:

AB40-ASA1,723,22 71.07 (3w) (bm) 4. In addition to the credits under par. (b) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined by the department of commerce under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

AB40-ASA1, s. 1859 Section 1859. 71.07 (3w) (c) 3. of the statutes is amended to read:

AB40-ASA1,724,3 71.07 (3w) (c) 3. 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. 238.399 (5) or (5m) or s. 560.799 (5) or (5m), 2009 stats.

AB40-ASA1, s. 1860 Section 1860. 71.07 (3w) (d) of the statutes is amended to read:

AB40-ASA1,724,9 71.07 (3w) (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits, and a copy of the verification of their expenses, from the department of commerce or the Wisconsin Economic Development Corporation.

AB40-ASA1, s. 1861 Section 1861. 71.07 (5b) (a) 2. of the statutes is amended to read:

AB40-ASA1,724,12 71.07 (5b) (a) 2. "Fund manager" means an investment fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats.

AB40-ASA1, s. 1862 Section 1862. 71.07 (5b) (b) 1. of the statutes is amended to read:

AB40-ASA1,724,19 71.07 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009 stats., and except as provided in subd. 2., a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08, up to the amount of those taxes, 25 percent of the claimant's investment paid to a fund manager that the fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.

AB40-ASA1, s. 1863 Section 1863. 71.07 (5b) (b) 2. of the statutes is amended to read:

AB40-ASA1,725,4 71.07 (5b) (b) 2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity's organizational documents. The entity shall provide to the department of revenue and to the department of commerce or the Wisconsin Economic Development Corporation the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.

AB40-ASA1, s. 1864 Section 1864. 71.07 (5b) (d) 3. of the statutes is amended to read:

AB40-ASA1,725,10 71.07 (5b) (d) 3. For calendar years beginning investments made 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.

AB40-ASA1, s. 1865 Section 1865. 71.07 (5d) (a) 1. (intro.) of the statutes is amended to read:

AB40-ASA1,725,14 71.07 (5d) (a) 1. (intro.) "Bona fide angel investment" means a purchase of an equity interest, or any other expenditure, as determined by rule under s. 238.15 or s. 560.205, 2009 stats., that is made by any of the following:

AB40-ASA1, s. 1866 Section 1866. 71.07 (5d) (a) 2m. of the statutes is amended to read:

AB40-ASA1,725,18 71.07 (5d) (a) 2m. "Person" means a partnership or limited liability company that is a nonoperating entity, as determined by the department of commerce or the Wisconsin Economic Development Corporation, a natural person, or fiduciary.

AB40-ASA1, s. 1867 Section 1867. 71.07 (5d) (a) 3. of the statutes is amended to read:

AB40-ASA1,725,21 71.07 (5d) (a) 3. "Qualified new business venture" means a business that is certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.

AB40-ASA1, s. 1868 Section 1868. 71.07 (5d) (b) (intro.) of the statutes is amended to read:

AB40-ASA1,726,2 71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection and in s. 238.15 or s. 560.205, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of those taxes, the following:

AB40-ASA1, s. 1869 Section 1869. 71.07 (5d) (b) 1. of the statutes is amended to read:

AB40-ASA1,726,8 71.07 (5d) (b) 1. For taxable years beginning before January 1, 2008, in each taxable year for 2 consecutive years, beginning with the taxable year as certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 12.5 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

AB40-ASA1, s. 1870 Section 1870. 71.07 (5d) (b) 2. of the statutes is amended to read:

AB40-ASA1,726,13 71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, for the taxable year certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 25 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

AB40-ASA1, s. 1871 Section 1871. 71.07 (5d) (c) 2. of the statutes is amended to read:

AB40-ASA1,726,18 71.07 (5d) (c) 2. For taxable years beginning before January 1, 2008, the maximum amount of a claimant's investment that may be used as the basis for a credit under this subsection is $2,000,000 for each investment made directly in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.

AB40-ASA1, s. 1873 Section 1873. 71.07 (5d) (d) 1. of the statutes is amended to read:

AB40-ASA1,726,24 71.07 (5d) (d) 1. For calendar years beginning investments made 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.

AB40-ASA1, s. 1874 Section 1874. 71.07 (5f) (a) 1. (intro.) of the statutes is amended to read:

AB40-ASA1,727,11 71.07 (5f) (a) 1. (intro.) "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce or the department of tourism, 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 $50,000. "Accredited production" also means an electronic game, as approved by the department of commerce or the department of tourism, 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:

AB40-ASA1, s. 1875 Section 1875. 71.07 (5f) (a) 3. of the statutes is amended to read:

AB40-ASA1,727,21 71.07 (5f) (a) 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 or the department of tourism. "Production expenditures" do not include salary, wages, or labor-related contract payments.

AB40-ASA1, s. 1876 Section 1876. 71.07 (5f) (c) 6. of the statutes is amended to read:

AB40-ASA1,728,5 71.07 (5f) (c) 6. No credit may be allowed under this subsection unless the claimant files an application with the department of commerce or the department of tourism, at the time and in the manner prescribed by the department of commerce or the department of tourism, and the department of commerce or the department of tourism 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.

AB40-ASA1, s. 1877 Section 1877. 71.07 (5h) (c) 4. of the statutes is amended to read:

AB40-ASA1,728,11 71.07 (5h) (c) 4. No claim may be allowed under this subsection unless the department of commerce or the department of tourism certifies, in writing, that the credits claimed under this subsection are for expenses related to establishing or operating a film production company in this state and the claimant submits a copy of the certification with the claimant's return.

AB40-ASA1, s. 1878 Section 1878. 71.07 (5i) (c) 1. of the statutes is amended to read:

AB40-ASA1,728,15 71.07 (5i) (c) 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.28 (5i) and 71.47 (5i) in a taxable year is $10,000,000, as allocated under s. 73.15 or s. 560.204, 2009 stats.

AB40-ASA1, s. 1879 Section 1879. 71.07 (5j) (a) 2d. of the statutes is amended to read:

AB40-ASA1,728,21 71.07 (5j) (a) 2d. "Diesel replacement renewable fuel" includes biodiesel and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce or the department of safety and professional services designates by rule as a diesel replacement renewable fuel.

AB40-ASA1, s. 1880 Section 1880. 71.07 (5j) (a) 2m. of the statutes is amended to read:

AB40-ASA1,729,2 71.07 (5j) (a) 2m. "Gasoline replacement renewable fuel" includes ethanol and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce or the department of safety and professional services designates by rule as a gasoline replacement renewable fuel.

AB40-ASA1, s. 1881 Section 1881. 71.07 (5j) (c) 3. of the statutes is amended to read:

AB40-ASA1,729,9 71.07 (5j) (c) 3. The department of commerce or the department of safety and professional services shall establish standards to adequately prevent, in the distribution of conventional fuel to an end user, the inadvertent distribution of fuel containing a higher percentage of renewable fuel than the maximum percentage established by the federal environmental protection agency for use in conventionally-fueled engines.

AB40-ASA1, s. 1881n Section 1881n. 71.07 (5n) of the statutes is created to read:

AB40-ASA1,729,12 71.07 (5n) Qualified production activities credit. (a) Definitions. In this subsection:2

AB40-ASA1,729,13 1. "Claimant" means a person who files a claim under this subsection.

AB40-ASA1,729,17 2. "Eligible qualified production activities income" means qualified production activities income that derives from property located in this state that is assessed as manufacturing property under s. 70.995 or as agricultural property under s. 70.32 (2) (a) 4.

AB40-ASA1,729,19 3. "Qualified production activities income" means qualified production activities income as defined in 26 USC 199 (c).

AB40-ASA1,729,23 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to one of the following percentages of the claimant's eligible qualified production activities income in the taxable year:

AB40-ASA1,729,25 1. For taxable years beginning after December 31, 2012, and before January 1, 2014, 1.875 percent.

AB40-ASA1,730,2 2. For taxable years beginning after December 31, 2013, and before January 1, 2015, 3.75 percent.

AB40-ASA1,730,4 3. For taxable years beginning after December 31, 2014, and before January 1, 2016, 5.526 percent.

AB40-ASA1,730,5 4. For taxable years beginning after December 31, 2015, 7.5 percent.

AB40-ASA1,730,13 (c) Limitations. 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 share of the income described 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.

AB40-ASA1,730,15 (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.

AB40-ASA1, s. 1883 Section 1883. 71.07 (9e) (af) (intro.) of the statutes is amended to read:

AB40-ASA1,730,21 71.07 (9e) (af) (intro.) For taxable years beginning after December 31, 1995, and before January 1, 2011, any natural person may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the internal revenue code Internal Revenue Code:

AB40-ASA1, s. 1884 Section 1884. 71.07 (9e) (aj) of the statutes is created to read:

AB40-ASA1,731,2 71.07 (9e) (aj) For taxable years beginning after December 31, 2010, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

AB40-ASA1,731,4 1. If the person has one qualifying child who has the same principal place of abode as the person, 4 percent.

AB40-ASA1,731,6 2. If the person has 2 qualifying children who have the same principal place of abode as the person, 11 percent.

AB40-ASA1,731,8 3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 34 percent.

AB40-ASA1, s. 1887c Section 1887c. 71.10 (3) of the statutes is repealed.

AB40-ASA1, s. 1887d Section 1887d. 71.10 (4) (cr) of the statutes is created to read:

AB40-ASA1,731,11 71.10 (4) (cr) Qualified production activities credit under s. 71.07 (5n).

AB40-ASA1, s. 1888b Section 1888b. 71.10 (5f) (i) of the statutes is amended to read:

AB40-ASA1,731,22 71.10 (5f) (i) Appropriations and payment. From the moneys received from designations for the breast cancer research program, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited in the general fund and credited to the appropriation account under s. 20.566 (1) (hp), and, of the net amount remaining that is certified under par. (h) 3., an amount equal to 50 percent shall be credited to the appropriation account under s. 20.250 (2) (g) and an amount equal to 50 percent shall be credited to the appropriation account under s. 20.285 (1) (gm) paid to the University of Wisconsin System for breast cancer research conducted by the University of Wisconsin Carbone Cancer Center.

AB40-ASA1, s. 1889b Section 1889b. 71.10 (5h) (i) of the statutes is amended to read:

AB40-ASA1,732,7 71.10 (5h) (i) Appropriations, disbursement of funds to the fund and payment . From the moneys received from designations for the prostate cancer research program, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited in the general fund and credited to the appropriation account under s. 20.566 (1) (hp), and , of the net amount remaining that is certified under par. (h) 3., an amount equal to 50 percent shall be credited to the appropriation accounts account under ss. s. 20.250 (2) (h) and 20.285 (1) (gn) an amount equal to 50 percent shall be paid to the University of Wisconsin System, for the use specified under s. 255.054 (1).

AB40-ASA1, s. 2889e Section 2889e. 71.10 (5k) of the statutes is created to read:

AB40-ASA1,732,10 71.10 (5k) American Red Cross, Badger Chapter checkoff. (a) Definitions. In this subsection:

AB40-ASA1,732,11 1. "Badger Chapter" means the Badger Chapter of the American Red Cross.

AB40-ASA1,732,12 2. "Department" means the department of revenue.

AB40-ASA1,732,16 (b) Voluntary payments. 1. `Designation on return.' Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return any amount of additional payment or any amount of a refund due that individual for the Badger Chapter.

AB40-ASA1,732,19 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return for the Badger Chapter when the individual files a tax return.

AB40-ASA1,732,23 3. `Designation deducted from refund.' Except as provided in par. (d), if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) and (3m), the department shall deduct the amount designated on the return for the Badger Chapter from the amount of the refund.

AB40-ASA1,733,3 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the Badger Chapter:

AB40-ASA1,733,8 1. The department shall reduce the designation for the Badger Chapter to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return for the Badger Chapter.

AB40-ASA1,733,10 2. The designation for the Badger Chapter is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.

AB40-ASA1,733,16 (d) Errors; insufficient refund. If an individual is owed a refund that does not equal or exceed the amount designated on the return for the Badger Chapter, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections, the department shall reduce the designation for the Badger Chapter to reflect the actual amount of the refund that the individual is otherwise owed, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections.

AB40-ASA1,733,18 (e) Conditions. If an individual places any conditions on a designation for the Badger Chapter, the designation is void.

AB40-ASA1,733,21 (f) Void designation. If a designation for the Badger Chapter is void, the department shall disregard the designation and determine amounts due, owed, refunded, and received without regard to the void designation.

AB40-ASA1,733,23 (g) Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return.

AB40-ASA1,734,3 (h) Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of health services, the department of administration, and the state treasurer all of the following: