AB100: Bill Text

AB100,992,16 (e) 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. Subsection (2dj) (c), as it applies to the credit under sub. (2dj), applies to the credit under this subsection.

AB100, s. 2263 Section 2263. 71.08 (1) (intro.) of the statutes is amended to read:

AB100,992,25 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB100, s. 2264 Section 2264. 71.09 (6) of the statutes is repealed.

AB100, s. 2265 Section 2265. 71.10 (4) (gu) of the statutes is created to read:

AB100,993,3 71.10 (4) (gu) Development zones credit under s. 71.07 (2dx).

AB100, s. 2266 Section 2266. 71.10 (5) (a) 2. of the statutes is amended to read:

AB100,993,13 71.10 (5) (a) 2. "Endangered resources program" means purchasing or improving land or habitats for any native Wisconsin endangered or threatened species as defined in s. 29.415 (2) (a) or (b) or for any nongame species as defined in s. 29.01 (10), conducting the natural heritage inventory program under s. 23.27 (3), conducting wildlife and resource research and surveys and providing wildlife management services, providing for wildlife damage control or the payment of claims for damage associated with endangered or threatened species, repaying the general fund for amounts expended under s. 20.370 (1) (fb) in fiscal year 1983-84 and the payment of administrative expenses related to the administration of this subsection.

AB100, s. 2267 Section 2267. 71.21 (4) of the statutes is amended to read:

AB100,993,17 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL) and, (2ds) and (2dx) and passed through to partners or members shall be added to the partnership's or limited liability company's income.

AB100, s. 2268 Section 2268. 71.22 (1m) of the statutes is created to read:

AB100,993,19 71.22 (1m) "Department" means the department of revenue.

AB100, s. 2269 Section 2269. 71.22 (2m) of the statutes is created to read:

AB100,993,24 71.22 (2m) "File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.

AB100, s. 2270 Section 2270. 71.22 (8) of the statutes is repealed and recreated to read:

AB100,994,2 71.22 (8) "Pay", in regard to submissions to persons other than the department, has the meaning appropriate to the taxpayer's method of accounting.

AB100, s. 2271 Section 2271. 71.22 (9m) of the statutes is created to read:

AB100,994,5 71.22 (9m) "Subscribe" means write one's signature or, if the department prescribes another method of authenticating, use that other method.

AB100, s. 2272 Section 2272. 71.24 (8) of the statutes is repealed.

AB100, s. 2273 Section 2273. 71.26 (1m) (h) of the statutes is created to read:

AB100,994,9 71.26 (1m) (h) Those issued under s. 66.066 by a municipality under s. 66.30 (3q) (c).

AB100, s. 2274 Section 2274. 71.26 (2) (a) of the statutes is amended to read:

AB100,994,25 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL) and, (1ds) and (1dx) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the internal revenue code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

AB100, s. 2275 Section 2275. 71.26 (3) (n) of the statutes is amended to read:

AB100,995,5 71.26 (3) (n) Sections 381, 382 and 383 (relating to carry-overs in certain corporate acquisitions) are modified so that they apply to losses under sub. (4) and credits under s. 71.28 (1di), (1dL), (1dx) and (3) to (5) instead of to federal credits and federal net operating losses.

AB100, s. 2276 Section 2276. 71.28 (1dx) of the statutes is created to read:

AB100,995,7 71.28 (1dx) Development zones credit. (a) Definitions. In this subsection:

AB100,995,9 1. "Brownfield" means an industrial or commercial facility the expansion or redevelopment of which is complicated by environmental contamination.

AB100,995,12 2. "Development zone" means a development zone under s. 560.70, a development opportunity zone under s. 560.795 or an enterprise development zone under s. 560.797.

AB100,995,17 3. "Environmental remediation" means removal or containment of environmental pollution, as defined in s. 299.01 (4), and restoration of soil or groundwater that is affected by environmental pollution, as defined in s. 299.01 (4), in a brownfield if that removal, containment or restoration fulfills the requirement under sub. (1de) (a) 1.

AB100,995,23 4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.

AB100,996,3 5. "Member of a targeted group" means a person under sub. (1dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates and a Wisconsin works participant if the person or participant has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

AB100,996,6 (b) Credit. Except as provided in s. 73.03 (35) and subject to s. 560.785, for any taxable year for which the person is certified under s. 560.765 (3), any person may claim as a credit against taxes under this subchapter the following amounts:

AB100,996,8 1. The amount expended for environmental remediation in a development zone.

AB100,996,11 2. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) by the number of full-time jobs created in a development zone and filled by a member of a targeted group.

AB100,996,14 3. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs created in a development zone and not filled by a member of a targeted group.

AB100,996,17 4. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) by the number of full-time jobs retained, as provided in the rules under s. 560.785, in a development zone and filled by a member of a targeted group.

AB100,996,21 5. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules under s. 560.785, in a development zone and not filled by a member of a targeted group.

AB100,997,2 (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3) is revoked, that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked or succeeding taxable years.

AB100,997,7 (d) Carry-over precluded. If a person who is certified under s. 560.765 (3) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB100,997,10 (e) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection. Subsection (1dj) (c), as it applies to the credit under sub. (1dj), applies to the credit under this subsection.

AB100, s. 2277 Section 2277. 71.28 (4) (a) of the statutes is amended to read:

AB100,997,22 71.28 (4) (a) Credit. Any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year and except that "qualified research expenses" does not include compensation used in computing the credit under sub. subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the internal revenue code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d). Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph.

AB100, s. 2278 Section 2278. 71.29 (2) of the statutes is amended to read:

AB100,998,4 71.29 (2) Who shall pay. Every corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax to the department of revenue at its offices in Madison unless the department, by rule, prescribes another place of payment . If the amount of any payment is $20,000 or more, the department may require the corporation to make the payment electronically.

AB100, s. 2279 Section 2279. 71.30 (3) (eom) of the statutes is created to read:

AB100,998,6 71.30 (3) (eom) Development zones credit under s. 71.28 (1dx).

AB100, s. 2280 Section 2280. 71.34 (1) (g) of the statutes is amended to read:

AB100,998,10 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL) and, (1ds) and (1dx) and passed through to shareholders.

AB100, s. 2281 Section 2281. 71.42 (1m) of the statutes is created to read:

AB100,998,12 71.42 (1m) "Department" means the department of revenue.

AB100, s. 2282 Section 2282. 71.42 (3m) of the statutes is created to read:

AB100,998,16 71.42 (3m) "Pay" means mail or deliver funds to the department or, if the department prescribes another method of payment or another destination, use that other method or submit to that other destination.

AB100, s. 2283 Section 2283. 71.44 (4) (a) of the statutes is repealed.

AB100, s. 2284 Section 2284. 71.45 (1t) (h) of the statutes is created to read:

AB100,998,20 71.45 (1t) (h) Those issued under s. 66.066 by a municipality under s. 66.30 (3q) (c).

AB100, s. 2285 Section 2285. 71.45 (2) (a) 10. of the statutes is amended to read:

AB100,999,2 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1ds) (1dx) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (4) and (5).

AB100, s. 2286 Section 2286. 71.47 (1dx) of the statutes is created to read:

AB100,999,4 71.47 (1dx) Development zones credit. (a) Definitions. In this subsection:

AB100,999,6 1. "Brownfield" means an industrial or commercial facility the expansion or redevelopment of which is complicated by environmental contamination.

AB100,999,9 2. "Development zone" means a development zone under s. 560.70, a development opportunity zone under s. 560.795 or an enterprise development zone under s. 560.797.

AB100,999,14 3. "Environmental remediation" means removal or containment of environmental pollution, as defined in s. 299.01 (4), and restoration of soil or groundwater that is affected by environmental pollution, as defined in s. 299.01 (4), in a brownfield if that removal, containment or restoration fulfills the requirement under sub. (1de) (a) 1.

AB100,999,20 4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.

AB100,999,25 5. "Member of a targeted group" means a person under sub. (1dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates and a Wisconsin works participant if the person or participant has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

AB100,1000,3 (b) Credit. Except or provided in s. 73.03 (35) and subject to s. 560.785, for any taxable year for which the person is certified under s. 560.765 (3), any person may claim as a credit against taxes under this subchapter the following amounts:

AB100,1000,5 1. The amount expended for environmental remediation in a development zone.

AB100,1000,8 2. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) by the number of full-time jobs created in a development zone and filled by a member of a targeted group.

AB100,1000,11 3. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs created in a development zone and not filled by a member of a targeted group.

AB100,1000,14 4. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) by the number of full-time jobs retained, as provided in the rules under s. 560.785, in a development zone and filled by a member of a targeted group.

AB100,1000,18 5. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules under s. 560.785, in a development zone and not filled by a member of a targeted group.

AB100,1000,24 (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3) is revoked, that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked or succeeding taxable years.

AB100,1001,5 (d) Carry-over precluded. If a person who is certified under s. 560.765 (3) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

AB100,1001,8 (e) 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. Subsection (1dj) (c), as it applies to the credit under sub. (1dj), applies to the credit under this subsection.

AB100, s. 2287 Section 2287. 71.47 (4) (a) of the statutes is amended to read:

AB100,1001,20 71.47 (4) (a) Credit. Any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year and except that "qualified research expenses" does not include compensation used in computing the credit under sub. subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the internal revenue code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d). Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph.

AB100, s. 2288 Section 2288. 71.49 (1) (eom) of the statutes is created to read:

AB100,1001,22 71.49 (1) (eom) Development zones credit under s. 71.47 (1dx).

AB100, s. 2289 Section 2289. 71.52 (6) of the statutes is amended to read:

AB100,1003,10 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment compensation, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income other than a qualified scholarship or qualified tuition reduction that is includable in the calculation of federal adjusted gross income under section 117 of the internal revenue code, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

AB100, s. 2290 Section 2290. 71.63 (1m) of the statutes is created to read:

AB100,1003,15 71.63 (1m) "Deposit" means mail or deliver funds to the department or, if the department prescribes another method of submitting or if the department of administration designates under s. 34.05 another destination, use that other method or submit to that other destination.

AB100, s. 2291 Section 2291. 71.63 (2) of the statutes is amended to read:

AB100,1003,25 71.63 (2) "Employe" means a resident individual who performs or performed services for an employer anywhere or a nonresident individual who performs or performed such services within this state, and includes an officer, employe or elected official of the United States, a state, territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of these entities. The term includes an officer of a corporation, an entertainer and an entertainment corporation, but does not include a qualified real estate agent or a direct seller who is not treated as an employe under section 3508 of the Internal Revenue Code.

AB100, s. 2292 Section 2292. 71.63 (3m) of the statutes is created to read:

AB100,1004,5 71.63 (3m) "File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or the department of administration designates under s. 34.05 another destination, use that other method or submit to that other destination.

AB100, s. 2293 Section 2293. 71.63 (3r) of the statutes is created to read:

AB100,1004,10 71.63 (3r) "Furnish" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.

AB100, s. 2294 Section 2294. 71.63 (5m) of the statutes is created to read: