AB704: Bill Text

LRB-3394/1

JK:jld:rs

2003 - 2004 LEGISLATURE

2003 Assembly BILL 704

December 17, 2003 - Introduced by Representatives Wieckert, Schooff, F. Lasee, Olsen, Ott, Townsend, Hines, Owens, Jeskewitz, Bies, Weber, Gielow and Lothian, cosponsored by Senators Reynolds, Lassa, Roessler and Stepp. Referred to Committee on Ways and Means.

AB704,1,4 An Act to amend 71.07 (2), 71.07 (2dr) (f), 71.07 (3s) (c) 1., 71.28 (1) (b), 71.28 (3) (c) 1., 71.28 (4) (f), 71.47 (1) (b), 71.47 (3) (c) 1. and 71.47 (4) (f) of the statutes; relating to: extending tax credit carry-over provisions for income tax and franchise tax purposes.

Analysis by the Legislative Reference Bureau

Under current law, generally, if an income or franchise tax credit claimed by a business exceeds the tax liability of the business for the taxable year, the state will not issue a refund check, but the business may claim the unused balance of the credit against its tax liability for up to 15 subsequent taxable years. Under this bill, a business may claim the unused balance of any income or franchise tax credit against its tax liability for up to 20 subsequent taxable years. The bill applies to all credits related to development zones, to the community development authority credit, to the research credit, to the supplemental federal historic rehabilitation credit, and to the manufacturing sales tax credit.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB704, s. 1 Section 1. 71.07 (2) of the statutes is amended to read:

AB704,2,6 71.07 (2) Community development finance authority credit. Any individual receiving a credit under s. 71.09 (12m), 1985 stats., may carry forward to the next succeeding 15 20 taxable years the amount of the credit not offset against taxes for the year of purchase to the extent not offset by those taxes otherwise due in all intervening years between the year for which the credit was computed and the year for which the carry-forward is claimed.

AB704, s. 2 Section 2. 71.07 (2dr) (f) of the statutes is amended to read:

AB704,2,13 71.07 (2dr) (f) Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 20 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB704, s. 3 Section 3. 71.07 (3s) (c) 1. of the statutes is amended to read:

AB704,2,22 71.07 (3s) (c) 1. The credit under par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant in which the fuel and electricity are consumed. If the credit computed is not entirely offset against taxes otherwise due, the unused balance shall be carried forward and credited against taxes otherwise due for the following 15 20 taxable years to the extent not offset by taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB704, s. 4 Section 4. 71.28 (1) (b) of the statutes is amended to read:

AB704,3,3 71.28 (1) (b) Any corporation receiving a credit under this subsection may carry forward to the next succeeding 15 20 taxable years the amount of the credit not offset against taxes for the year of purchase to the extent not offset by those taxes otherwise due in all intervening years between the year for which the credit was computed and the year for which the carry-forward is claimed.

AB704, s. 5 Section 5. 71.28 (3) (c) 1. of the statutes is amended to read:

AB704,3,10 71.28 (3) (c) 1. If the credit computed under par. (b) is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance shall be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 20 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB704, s. 6 Section 6. 71.28 (4) (f) of the statutes is amended to read:

AB704,3,17 71.28 (4) (f) Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 20 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB704, s. 7 Section 7. 71.47 (1) (b) of the statutes is amended to read:

AB704,3,23 71.47 (1) (b) Any corporation receiving a credit under this subsection may carry forward to the next succeeding 15 20 taxable years the amount of the credit not offset against taxes for the year of purchase to the extent not offset by those taxes otherwise due in all intervening years between the year for which the credit was computed and the year for which the carry-forward is claimed.

AB704, s. 8 Section 8. 71.47 (3) (c) 1. of the statutes is amended to read:

AB704,4,6 71.47 (3) (c) 1. If the credit computed under par. (b) is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance shall be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 20 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB704, s. 9 Section 9. 71.47 (4) (f) of the statutes is amended to read:

AB704,4,13 71.47 (4) (f) Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 20 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB704, s. 10 Section 10. Initial applicability.

AB704,4,18 (1) This act first applies, for corporations and insurance companies, to credits computed for taxable years beginning on January 1, 1988, and, for individuals, tax-option corporations, partnerships, and limited liability companies, to credits computed for taxable years beginning on January 1, 1998.

AB704,4,19 (End)