AB901: Bill Text

AB901,2,7 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (3e) and (3s) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB901, s. 2 Section 2. 71.07 (3e) of the statutes is created to read:

AB901,2,10 71.07 (3e) Farmland education, investment and sales tax credit. (a) Definitions. In this subsection:

AB901,2,11 1. "Agricultural use" has the meaning given in s. 91.01 (1).

AB901,2,12 2. "Claimant" has the meaning given in sub. (3m) (a) 1.

AB901,2,13 3. "Department" means the department of revenue.

AB901,2,15 4. "Educational expenses" means amounts paid by the claimant for tuition and textbooks that relate to the claimant's attendance at an eligible institution.

AB901,3,2 5. "Eligible institution" means a center or institution within the University of Wisconsin System, a technical college that is located in this state or any institution of higher education located in this state that grants a bachelor's or higher degree and that is accredited by the North Central Association of Colleges and Schools, the Independent Schools Association of the Central States or the Wisconsin Nonpublic School Accrediting Association.

AB901,3,4 6. "Farming" means being actively engaged in a trade or business that involves the agricultural use of farmland.

AB901,3,5 7. "Farmland" has the meaning given in sub. (3m) (a) 3.

AB901,3,7 8. "Livestock" means cattle, swine, sheep, goats and other species of animals that may be used in the production of food for human consumption.

AB901,3,11 (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 those taxes, any of the following amounts for which the claimant is eligible:

AB901,3,14 1. An amount equal to 5% of the educational expenses incurred by the claimant, in the year to which the claim relates, for the claimant to attend courses in the fields of agriculture or farm management at an eligible institution.

AB901,3,16 2. An amount equal to 5% of the cost expended by a claimant, in the year to which the claim relates, to do any of the following on the claimant's farmland:

AB901,3,17 a. Construct, renovate or repair water and waste management systems.

AB901,3,18 b. Limit and control soil erosion.

AB901,3,19 c. Engage in the reforestation of farmland.

AB901,3,20 d. Take corrective action, as defined in s. 94.73 (1) (b).

AB901,3,21 (c) Limitations. No credit may be allowed under this subsection:

AB901,3,23 1. Unless a claim is filed with the department in conformity with the filing requirements in s. 71.03 (6) and (7).

AB901,3,24 2. Unless it is claimed within the time period under s. 71.75 (2).

AB901,4,3 3. If the department determines that ownership of the farmland has been transferred to the claimant for the purpose of maximizing benefits under this subsection.

AB901,4,5 4. If the department determines that the claimant is not farming in the year to which the claim relates.

AB901,4,8 (d) Change of business, carry-over, administration, timeliness, nonclaimants. Section 71.28 (4) (e), (f), (g), (h) and (i), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB901, s. 3 Section 3. 71.08 (1) (intro.) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB901,4,18 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), (3e), (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:

AB901, s. 4 Section 4. 71.10 (4) (cm) of the statutes is created to read:

AB901,4,21 71.10 (4) (cm) Farmland education, investment and sales tax credit under s. 71.07 (3e).

AB901, s. 5 Section 5. 71.21 (4) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB901,5,3 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2dx), (3e) and (3s) and passed through to partners shall be added to the partnership's income.

AB901, s. 6 Section 6. 71.26 (2) (a) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB901,5,20 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), (1ds) and , (1dx) and (2e) 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).

AB901, s. 7 Section 7. 71.28 (2e) of the statutes is created to read:

AB901,5,23 71.28 (2e) Farmland education, investment and sales tax credit. (a) Definitions. In this subsection:

AB901,5,24 1. "Agricultural use" has the meaning given in s. 91.01 (1).

AB901,5,25 2. "Claimant" has the meaning given in sub. (2m) (a) 1.

AB901,6,1 3. "Department" means the department of revenue.

AB901,6,4 4. "Educational expenses" means amounts paid by the claimant for tuition and textbooks that relate to the claimant's employe's attendance at an eligible institution.

AB901,6,10 5. "Eligible institution" means a center or institution within the University of Wisconsin System, a technical college that is located in this state or any institution of higher education located in this state that grants a bachelor's or higher degree and that is accredited by the North Central Association of Colleges and Schools, the Independent Schools Association of the Central States or the Wisconsin Nonpublic School Accrediting Association.

AB901,6,12 6. "Farming" means being actively engaged in a trade or business that involves the agricultural use of farmland.

AB901,6,13 7. "Farmland" has the meaning given in sub. (2m) (a) 3.

AB901,6,15 8. "Livestock" means cattle, swine, sheep, goats and other species of animals that may be used in the production of food for human consumption.

AB901,6,19 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, any of the following amounts for which the claimant is eligible:

AB901,6,22 1. An amount equal to 5% of the educational expenses incurred by the claimant, in the year to which the claim relates, for the claimant's employes to attend courses in the fields of agriculture or farm management at an eligible institution.

AB901,6,24 2. An amount equal to 5% of cost expended by a claimant, in the year to which the claim relates, to do any of the following on the claimant's farmland:

AB901,6,25 a. Construct, renovate or repair water and waste management systems.

AB901,7,1 b. Limit and control soil erosion.

AB901,7,2 c. Engage in the reforestation of farmland.

AB901,7,3 d. Take corrective action, as defined in s. 94.73 (1) (b).

AB901,7,4 (c) Limitations. No credit may be allowed under this subsection:

AB901,7,6 1. Unless a claim is filed with the department in conformity with the filing requirements in s. 71.24 (1), (6) and (7).

AB901,7,9 2. If the department determines that ownership of the farmland has been transferred to the claimant for the purpose of maximizing benefits under this subsection.

AB901,7,11 3. If the department determines that the claimant is not farming in the year to which the claim relates.

AB901,7,14 (d) Change of business, carry-over, administration, timeliness, nonclaimants. Subsection (4) (e), (f), (g), (h) and (i), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB901, s. 8 Section 8. 71.30 (3) (cm) of the statutes is created to read:

AB901,7,17 71.30 (3) (cm) Farmland education, investment and sales tax credit under s. 71.28 (2e).

AB901, s. 9 Section 9. 71.34 (1) (g) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB901,7,22 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), (1ds), (1dx) and, (2e) and (3) and passed through to shareholders.

AB901, s. 10 Section 10. 71.45 (2) (a) 10. of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB901,8,6 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx) and (2e) 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).

AB901, s. 11 Section 11. 71.47 (2e) of the statutes is created to read:

AB901,8,9 71.47 (2e) Farmland education, investment and sales tax credit. (a) Definitions. In this subsection:

AB901,8,10 1. "Agricultural use" has the meaning given in s. 91.01 (1).

AB901,8,11 2. "Claimant" has the meaning given in sub. (2m) (a) 1.

AB901,8,12 3. "Department" means the department of revenue.

AB901,8,14 4. "Educational expenses" means amounts paid by the claimant for tuition and textbooks that relate to the claimant's employe's attendance at an eligible institution

AB901,8,20 5. "Eligible institution" means a center or institution within the University of Wisconsin System, a technical college that is located in this state or any institution of higher education located in this state that grants a bachelor's or higher degree and that is accredited by the North Central Association of Colleges and Schools, the Independent Schools Association of the Central States or the Wisconsin Nonpublic School Accrediting Association.

AB901,8,22 6. "Farming" means being actively engaged in a trade or business that involves the agricultural use of farmland.

AB901,8,23 7. "Farmland" has the meaning given in sub. (2m) (a) 3.

AB901,8,25 8. "Livestock" means cattle, swine, sheep, goats and other species of animals that may be used in the production of food for human consumption.

AB901,9,4 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, any of the following amounts for which the claimant is eligible:

AB901,9,7 1. An amount equal to 5% of the educational expenses incurred by the claimant, in the year to which the claim relates, for the claimant's employes to attend courses in the fields of agriculture or farm management at an eligible institution.

AB901,9,9 2. An amount equal to 5% of cost expended by a claimant, in the year to which the claim relates, to do any of the following on the claimant's farmland:

AB901,9,10 a. Construct, renovate or repair water and waste management systems.

AB901,9,11 b. Limit and control soil erosion.

AB901,9,12 c. Engage in the reforestation of farmland.

AB901,9,13 d. Take corrective action, as defined in s. 94.73 (1) (b).

AB901,9,14 (c) Limitations. No credit may be allowed under this subsection:

AB901,9,16 1. Unless a claim is filed with the department in conformity with the filing requirements in s. 71.44 (1), (2) and (3).

AB901,9,19 2. If the department determines that ownership of the farmland has been transferred to the claimant for the purpose of maximizing benefits under this subsection.

AB901,9,21 3. If the department determines that the claimant is not farming in the year to which the claim relates.

AB901,9,24 (d) Change of business, carry-over, administration, timeliness, nonclaimants. Subsection (4) (e), (f), (g), (h) and (i), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB901, s. 12 Section 12. 71.49 (1) (cm) of the statutes is created to read:

AB901,10,2 71.49 (1) (cm) Farmland education, investment and sales tax credit under s. 71.47 (2e).

AB901, s. 13 Section 13. 77.92 (4) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB901,10,15 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the internal revenue code; plus the items of income and gain under section 702 of the internal revenue code; minus the items of loss and deduction under section 702 of the internal revenue code; plus payments treated as not made to partners under section 707 (a) of the internal revenue code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3e) and (3s); but excluding income, gain, loss and deductions from farming. "Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employe as defined in section 3121 (d) (3) of the internal revenue code.

AB901, s. 14 Section 14. Initial applicability.

AB901,10,20 (1) This act first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to claims filed for taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB901,10,21 (End)