AB40-SA1,15,2
171.47 (5p) Steve Hilgenberg community development credit. (a) Definition.
2In this subsection, "claimant" means a person who files a claim under this subsection.
AB40-SA1,15,123 (b) Filing claims. Subject to the limitations provided under this subsection and
4the requirements under s. 238.17, for taxable years beginning after December 31,
52012, and before January 1, 2015, except as provided under s. 238.17 (5) (cm), a
6claimant may claim as a credit against the tax imposed under s. 71.43, up to the
7amount of the tax, for the taxable year in which the investment is made, an amount
8equal to 10 percent of the claimant's qualified investment in a community
9development financial institution, if the investment is at least $10,000, but not more
10than $150,000, or 12 percent of the claimant's qualified investment in a community
11development financial institution, if the investment is more than $150,000, but not
12more than $500,000.
AB40-SA1,15,2013 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
14corporations may not claim the credit under this subsection, but the eligibility for,
15and the amount of, the credit are based on their payment of amounts under par. (b).
16A partnership, limited liability company, or tax-option corporation shall compute
17the amount of credit that each of its partners, members, or shareholders may claim
18and shall provide that information to each of them. Partners, members of limited
19liability companies, and shareholders of tax-option corporations may claim the
20credit in proportion to their ownership interests.
AB40-SA1,16,421 2. A person who makes an investment in a community development financial
22institution in a taxable year, withdraws the investment in that taxable year, and
23immediately reinvests the proceeds into another community development financial
24institution may claim only one credit under this subsection for that taxable year,
25based on the lesser of all such investments in that taxable year. Investments in a

1community development financial institution made before the effective date of this
2subdivision .... [LRB inserts date], may not be withdrawn prior to the end of their
3contractual term and reinvested in a community development financial institution
4in order to claim a credit under this subsection.
AB40-SA1,16,115 3. A claimant who withdraws a qualified investment from a community
6development financial institution prior to the date of withdrawal specified in the
7written notice provided to the claimant under s. 238.17 (5) (b) and who does not
8immediately reinvest the proceeds of the qualified investment as a qualified
9investment in another community development financial institution shall add to the
10claimant's liability for taxes imposed under s. 71.43 one of the following percentages
11of the amount of the credits received under this subsection:
AB40-SA1,16,1312 a. If the withdrawal occurs during the first year after the date on which the
13claimant made the qualified investment, 100 percent.
AB40-SA1,16,1514 b. If the withdrawal occurs during the 2nd year after the date on which the
15claimant made the qualified investment, 75 percent.
AB40-SA1,16,1716 c. If the withdrawal occurs during the 3rd year after the date on which the
17claimant made the qualified investment, 50 percent.
AB40-SA1,16,1918 d. If the withdrawal occurs during the 4th year after the date on which the
19claimant made the qualified investment, 25 percent.
AB40-SA1,16,2120 e. If the withdrawal occurs during the 5th year after the date on which the
21claimant made the qualified investment, 10 percent.
AB40-SA1,16,2322 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
23s. 71.28 (4), applies to the credit under this subsection.".
AB40-SA1,16,24 2439. Page 834, line 17: after that line insert:
AB40-SA1,17,1
1" Section 1434Lb. 71.49 (1) (dr) of the statutes is created to read:
AB40-SA1,17,32 71.49 (1) (dr) Steve Hilgenberg community development credit under s. 71.47
3(5p).".
AB40-SA1,17,4 440. Page 850, line 7: after that line insert:
AB40-SA1,17,5 5" Section 1467hb. 76.634 of the statutes is created to read:
AB40-SA1,17,15 676.634 Steve Hilgenberg community development credit. (1) Filing
7claims.
Subject to the limitations provided under this subsection and the
8requirements under s. 238.17, for taxable years beginning after December 31, 2012,
9and before January 1, 2015, except as provided under s. 238.17 (5) (cm), an insurer
10may claim as a credit against the fees due under s. 76.60, 76.63, 76.65, 76.66, or 76.67
11for the taxable year in which the investment is made, an amount equal to 10 percent
12of the insurer's qualified investment in a community development financial
13institution, if the investment is at least $10,000, but not more than $150,000, or 12
14percent of the insurer's qualified investment in a community development financial
15institution, if the investment is more than $150,000, but not more than $500,000.
AB40-SA1,17,21 16(2) Carry-forward. If the credit under sub. (1) is not entirely offset against the
17fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
18may be carried forward and credited against those fees for the following 15 years to
19the extent that it is not offset by those fees otherwise due in all the years between
20the year in which the expense was made and the year in which the carry-forward
21credit is claimed.
AB40-SA1,17,24 22(3) Limitations. (a) No credit may be allowed under this section unless the
23insurer includes with the insurer's annual return under s. 76.64 a copy of the
24insurer's certification for tax benefits under s. 238.17 (5) (b).
AB40-SA1,18,9
1(b) An insurer who makes an investment in a community development
2financial institution in a taxable year, withdraws the investment in that taxable
3year, and immediately reinvests the proceeds into another community development
4financial institution may claim only one credit under this section for that taxable
5year, based on the lesser of all such investments in that taxable year. Investments
6in a community development financial institution made before the effective date of
7this paragraph .... [LRB inserts date], may not be withdrawn prior to the end of their
8contractual term and reinvested in a community development financial institution
9in order to claim a credit under this section.
AB40-SA1,18,17 10(4) Repayment. An insurer who claims a credit under this section and who
11withdraws a qualified investment from a community development financial
12institution prior to the date of withdrawal specified in the written notice provided to
13the insurer under s. 238.17 (5) (b) and does not immediately reinvest the proceeds
14of the qualified investment as a qualified investment in another community
15development financial institution shall add to the insurer's liability for fees imposed
16under s. 76.60, 76.63, 76.65, 76.66, or 76.67 one of the following percentages of the
17amount of the credits received under this subsection:
AB40-SA1,18,1918 (a) If the withdrawal occurs during the first year after the date on which the
19insurer made the qualified investment, 100 percent.
AB40-SA1,18,2120 (b) If the withdrawal occurs during the 2nd year after the date on which the
21insurer made the qualified investment, 75 percent.
AB40-SA1,18,2322 (c) If the withdrawal occurs during the 3rd year after the date on which the
23insurer made the qualified investment, 50 percent.
AB40-SA1,18,2524 (d) If the withdrawal occurs during the 4th year after the date on which the
25insurer made the qualified investment, 25 percent.
AB40-SA1,19,2
1(e) If the withdrawal occurs during the 5th year after the date on which the
2insurer made the qualified investment, 10 percent.".
AB40-SA1,19,3 341. Page 852, line 25: after that line insert:
AB40-SA1,19,4 4" Section 1473fb. 76.67 (2) of the statutes is amended to read:
AB40-SA1,19,145 76.67 (2) If any domestic insurer is licensed to transact insurance business in
6another state, this state may not require similar insurers domiciled in that other
7state to pay taxes greater in the aggregate than the aggregate amount of taxes that
8a domestic insurer is required to pay to that other state for the same year less the
9credits under ss. 76.634, 76.635, 76.636, 76.637, 76.638, and 76.655, except that the
10amount imposed shall not be less than the total of the amounts due under ss. 76.65
11(2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums,
12as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss.
1376.634, 76.635, 76.636, 76.637, 76.638, and 76.655 against that total, and except that
14the amount imposed shall not be less than the amount due under s. 601.93.".
AB40-SA1,19,15 1542. Page 910, line 8: delete that line.
AB40-SA1,19,16 1643. Page 1084, line 6: delete that line.
AB40-SA1,19,17 1744. Page 1084, line 21: delete lines 21 to 24.
AB40-SA1,19,18 1845. Page 1110, line 24: after that line insert:
AB40-SA1,19,19 19" Section 2068d. 238.17 of the statutes is created to read:
AB40-SA1,19,21 20238.17 Certification of investments in community development
21financial institutions.
(1) Definitions. In this section:
AB40-SA1,19,2322 (a) "Community development financial institution" means an entity that
23satisfies all of the following:
AB40-SA1,20,3
11. The entity is certified by the fund under 12 CFR 1805.201 as meeting the
2eligibility requirements for a community development financial institution under 12
3CFR 1805.200
and 1805.201 (b).
AB40-SA1,20,44 2. The entity is organized under the laws of this state.
AB40-SA1,20,65 3. The entity uses qualified investments for which a person may be certified for
6tax credits under sub. (2) (a) for projects that are based in this state.
AB40-SA1,20,87 (b) "Fund" means the Community Development Financial Institutions Fund
8established under 12 USC 4703 (a).
AB40-SA1,20,119 (c) 1. Subject to subd. 2., "qualified investment" means a deposit or loan that
10pays no interest to the person who made the deposit or loan, if the deposit or loan has
11a value of at least $10,000 and is made for a period of at least 60 months.
AB40-SA1,20,1812 2. A community development financial institution that receives an investment
13described under subd. 1. shall have complete control over the entire investment
14amount, including any interest earned on the investment, for the duration of the
15investment period, but the investment may be subject to any additional terms and
16conditions of the investment agreement between the community development
17financial institution and the investor which are not inconsistent with the
18requirements of this section.
AB40-SA1,20,24 19(2) Certification; registration and reporting required. (a) Subject to the
20limits under sub. (4), the corporation may certify a person under this section to claim
21tax credits under s. 71.07 (5p), 71.28 (5p), 71.47 (5p), or 76.634 if the person applies
22to the corporation on a form prepared by the corporation and submits evidence
23satisfactory to the corporation that the person has made a qualified investment in
24a community development financial institution that is registered under par. (b).
AB40-SA1,21,7
1(b) 1. The corporation may register a community development financial
2institution if the community development financial institution applies to the
3corporation on a form prepared by the corporation. The corporation may revoke the
4registration of a community development financial institution if the entity no longer
5meets the eligibility requirements for certification as a community development
6financial institution by the fund or fails to comply with the requirements of this
7paragraph.
AB40-SA1,21,138 2. A community development financial institution registered under this section
9shall annually, within 90 days after the last day of the preceding calendar year,
10submit a report containing financial statements of the community development
11financial institution, prepared according to generally accepted accounting principles
12and including all of the following information for the preceding calendar year, to the
13corporation:
AB40-SA1,21,1514 a. The material events certification form required by the federal department
15of the treasury.
AB40-SA1,21,1816 b. Certification, in the form and manner prescribed by the corporation, that the
17community development financial institution satisfies the criteria under sub. (1) (a)
181. to 3.
AB40-SA1,21,1919 c. Any other information the corporation considers relevant.
AB40-SA1,21,22 20(3) Eligibility. (a) Except as provided in par. (b), a person certified under sub.
21(2) (a) is eligible to claim tax credits under s. 71.07 (5p), 71.28 (5p), 71.47 (5p), or
2276.634.
AB40-SA1,22,423 (b) If the registration of a community development financial institution in
24which a person certified under sub. (2) (a) has made a qualified investment is revoked
25by the corporation, and not reinstated by the corporation within 120 days following

1the revocation, or if the entity fails to meet the eligibility requirements for more than
2120 consecutive days for certification as a community development financial
3institution by the fund, the person certified under sub. (2) (a) may do any of the
4following:
AB40-SA1,22,65 1. Subject to s. 71.07 (5p) (c) 3., 71.28 (5p) (c) 3., 71.47 (5p) (c) 3., or 76.634 (4),
6withdraw the qualified investment.
AB40-SA1,22,97 2. Immediately reinvest the proceeds of the qualified investment as a qualified
8investment in another community development financial institution for the duration
9of the investment period.
AB40-SA1,22,11 10(4) Limits. No more than $1,000,000 in tax benefits may be claimed under this
11section in any calendar year.
AB40-SA1,22,12 12(5) Duties of the corporation. The corporation shall do all of the following:
AB40-SA1,22,1713 (a) Notify the department of revenue of every certification issued under sub.
14(2) (a) and include the dates on which any such certification is granted and the date
15on which the applicant may withdraw a qualified investment made in a community
16development financial institution, which date shall be no earlier than the first day
17of the 61st month after the qualified investment was made.
AB40-SA1,22,2218 (b) Provide to each applicant for certification under sub. (2) (a) a dated written
19notice indicating the corporation's decision to grant or deny certification. If
20certification is granted, the notice shall include the date on which the applicant may
21withdraw the qualified investment, which date shall be no earlier than the first day
22of the 61st month after the qualified investment was made.
AB40-SA1,22,2423 (c) Notify the department of revenue of each community development financial
24institution registered under sub. (2) (b).
AB40-SA1,23,3
1(cm) Determine whether to certify persons to claim tax credits under ss. 71.07
2(5p), 71.28 (5p), 71.47 (5p), and 76.634 for taxable years beginning after December
331, 2014, and to notify the department of revenue of that determination.
AB40-SA1,23,44 (d) Establish policies to administer this section.".
AB40-SA1,23,5 546. Page 1277, line 1: delete lines 1 to 11.
AB40-SA1,23,6 647. Page 1363, line 26: after that line insert:
AB40-SA1,23,7 7"(1f) Procurement preference for materials manufactured in United States.
AB40-SA1,23,12 8(a) The treatment of sections 16.754 (3) (intro.) and (a) and 66.0901 (1m) (b) and
9(10) of the statutes, the renumbering and amendment of section 16.754 (2) of the
10statutes, and the creation of section 16.754 (2) (a) and (c) of the statutes first apply
11to contracts entered into in the fiscal year that begins in the year after this subsection
12takes effect.
AB40-SA1,23,15 13(b) The treatment of section 16.754 (2m) of the statutes first applies to
14responses made and bids submitted in the fiscal year that begins in the year after
15this subsection takes effect.".
AB40-SA1,23,16 1648. Page 1366, line 19: delete lines 19 to 21.
AB40-SA1,23,17 1749. Page 1371, line 12: after that line insert:
AB40-SA1,23,20 18"(2h) Procurement preferences. The treatment of section 66.0145 of the
19statutes first applies to purchases made in the fiscal year that begins in the year after
20this subsection takes effect.".
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