AB1047: Bill Text

AB1047, s. 1 Section 1. 44.02 (24) of the statutes is amended to read:

AB1047,3,3 44.02 (24) Promulgate by rule procedures, standards and forms necessary to certify, and shall certify, expenditures for preservation or rehabilitation of historic property for the purposes of s. ss. 71.07 (9m) (a) and (cm) and (9r), 71.28 (6) (a) and (cm), and 71.47 (6) (a) and (cm). These standards shall be substantially similar to the standards used by the secretary of the interior to certify rehabilitations under 26 USC 47 (c) (2).

AB1047, s. 2 Section 2. 71.07 (5m) (a) 4. of the statutes is amended to read:

AB1047,3,6 71.07 (5m) (a) 4. "Net tax liability" means a claimant's income tax liability after he or she completes the computations listed in s. 71.10 (4) (a) to (dr) (dm).

AB1047, s. 3 Section 3. 71.07 (9m) (a) of the statutes is renumbered 71.07 (9m) (a) 1. and amended to read:

AB1047,3,15 71.07 (9m) (a) 1. Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% 5 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal revenue code Internal Revenue Code, for certified historic structures on property located in this state, if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and before January 1, 2005, and the rehabilitated property is placed in service after June 30, 1989.

AB1047, s. 4 Section 4. 71.07 (9m) (a) 2. of the statutes is created to read:

AB1047,3,22 71.07 (9m) (a) 2. Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state, if the physical work of construction or destruction in preparation for construction begins after December 31, 2004.

AB1047, s. 5 Section 5. 71.07 (9m) (c) of the statutes is amended to read:

AB1047,4,5 71.07 (9m) (c) No Except as provided in par. (cm), no person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began; and the claimant claims the credit for the same taxable year in which the claimant would have claimed the credit for federal purposes.

AB1047, s. 6 Section 6. 71.07 (9m) (cm) of the statutes is created to read:

AB1047,4,16 71.07 (9m) (cm) A person whose qualified rehabilitation expenditures do not satisfy the adjusted basis requirement under section 47 (c) (1) of the Internal Revenue Code, but who otherwise would be eligible to claim the rehabilitation credit under section 47 of the Internal Revenue Code, may claim the credit under par. (a), if the person's qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, are at least $10,000; if the rehabilitation is approved by the state historical society before the physical work of construction, or destruction in preparation for construction, begins; if the person includes evidence of such approval with the person's return; and if the person claims the credit for the same taxable year in which the person would have claimed the credit for federal purposes.

AB1047, s. 7 Section 7. 71.07 (9m) (g) of the statutes is created to read:

AB1047,4,25 71.07 (9m) (g) A person who has incurred qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures located in this state, as described in par. (a), but who is not a resident of this state and who is not required to file a return under this chapter, may enter into an agreement with another person, with the department's approval and in the manner prescribed by the department, so that the other person may claim the credit under this subsection, if the other person is subject to the taxes imposed under s. 71.02.

AB1047, s. 8 Section 8. 71.07 (9m) (h) of the statutes is created to read:

AB1047,5,10 71.07 (9m) (h) A person who receives a credit under this subsection shall add to the person's liability for taxes imposed under s. 71.02 one of the following percentages of the amount of the credits received under this subsection for rehabilitating or preserving the property if, within 5 years after the date on which the preservation or rehabilitation work that was the basis of the credit is completed, the person either sells or conveys the property by deed or land contract or the state historical society certifies to the department of revenue that the historic property has been altered to the extent that it does not comply with the standards promulgated under s. 44.02 (24):

AB1047,5,12 1. If the sale, conveyance, or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100 percent.

AB1047,5,14 2. If the sale, conveyance, or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80 percent.

AB1047,5,16 3. If the sale, conveyance, or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60 percent.

AB1047,5,18 4. If the sale, conveyance, or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40 percent.

AB1047,5,20 5. If the sale, conveyance, or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20 percent.

AB1047, s. 9 Section 9. 71.07 (9r) (a) of the statutes is renumbered 71.07 (9r) (a) 1. and amended to read:

AB1047,6,8 71.07 (9r) (a) 1. For taxable years beginning on or after August 1, 1988, any natural person may credit against taxes otherwise due under s. 71.02 an amount equal to 25% 25 percent of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and before January 1, 2005, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.

AB1047, s. 10 Section 10. 71.07 (9r) (a) 2. of the statutes is created to read:

AB1047,6,19 71.07 (9r) (a) 2. For taxable years beginning after December 31, 2004, any natural person may credit against taxes otherwise due under s. 71.02 an amount equal to 30 percent of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 2004, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.

AB1047, s. 11 Section 11. 71.08 (1) (intro.) of the statutes is amended to read:

AB1047,7,4 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), (3n), (3s), (3t), (5b), (5d), (6), and (9e), and (9r), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t) 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:

AB1047, s. 12 Section 12. 71.10 (4) (dr) of the statutes is renumbered 71.10 (4) (fm).

AB1047, s. 13 Section 13 . 71.21 (6) of the statutes is created to read:

AB1047,7,12 71.21 (6) Credits computed by a partnership under s. 71.07 (9m), 71.28 (6), or 71.47 (6) may be allocated to partners either as provided under this chapter or pursuant to an agreement among the partners establishing an alternate allocation method. The partners shall notify the department of an agreement within 30 days after the agreement is executed and shall provide any additional information requested by the department regarding the agreement.

AB1047, s. 14 Section 14. 71.28 (6) (a) of the statutes is renumbered 71.28 (6) (a) 1. and amended to read:

AB1047,7,21 71.28 (6) (a) 1. Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% 5 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal revenue code Internal Revenue Code, for certified historic structures on property located in this state, if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and before January 1, 2005, and the rehabilitated property is placed in service after June 30, 1989.

AB1047, s. 15 Section 15. 71.28 (6) (a) 2. of the statutes is created to read:

AB1047,8,3 71.28 (6) (a) 2. Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state, if the physical work of construction or destruction in preparation for construction begins after December 31, 2004.

AB1047, s. 16 Section 16. 71.28 (6) (c) of the statutes is amended to read:

AB1047,8,11 71.28 (6) (c) No Except as provided in par. (cm), no person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began; and the claimant claims the credit for the same taxable year in which the claimant would have claimed the credit for federal purposes.

AB1047, s. 17 Section 17. 71.28 (6) (cm) of the statutes is created to read:

AB1047,8,22 71.28 (6) (cm) A person whose qualified rehabilitation expenditures do not satisfy the adjusted basis requirement under section 47 (c) (1) of the Internal Revenue Code, but who otherwise would be eligible to claim the rehabilitation credit under section 47 of the Internal Revenue Code, may claim the credit under par. (a), if the person's qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, are at least $10,000; if the rehabilitation is approved by the state historical society before the physical work of construction, or destruction in preparation for construction, begins; if the person includes evidence of such approval with the person's return; and if the person claims the credit for the same taxable year in which the person would have claimed the credit for federal purposes.

AB1047, s. 18 Section 18. 71.28 (6) (g) of the statutes is created to read:

AB1047,9,6 71.28 (6) (g) A person who has incurred qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures located in this state, as described in par. (a), but who is not a resident of this state and who is not required to file a return under this chapter, may enter into an agreement with another person, with the department's approval and in the manner prescribed by the department, so that the other person may claim the credit under this subsection, if the other person is subject to the taxes imposed under s. 71.23.

AB1047, s. 19 Section 19. 71.28 (6) (h) of the statutes is created to read:

AB1047,9,16 71.28 (6) (h) A person who receives a credit under this subsection shall add to the person's liability for taxes imposed under s. 71.23 one of the following percentages of the amount of the credits received under this subsection for rehabilitating or preserving the property if, within 5 years after the date on which the preservation or rehabilitation work that was the basis of the credit is completed, the person either sells or conveys the property by deed or land contract or the state historical society certifies to the department of revenue that the historic property has been altered to the extent that it does not comply with the standards promulgated under s. 44.02 (24):

AB1047,9,18 1. If the sale, conveyance, or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100 percent.

AB1047,9,20 2. If the sale, conveyance, or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80 percent.

AB1047,9,22 3. If the sale, conveyance, or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60 percent.

AB1047,9,24 4. If the sale, conveyance, or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40 percent.

AB1047,10,2 5. If the sale, conveyance, or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20 percent.

AB1047, s. 20 Section 20. 71.47 (6) (a) of the statutes is renumbered 71.47 (6) (a) 1. and amended to read:

AB1047,10,11 71.47 (6) (a) 1. Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% 5 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal revenue code Internal Revenue Code, for certified historic structures on property located in this state, if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and before January 1, 2005, and the rehabilitated property is placed in service after June 30, 1989.

AB1047, s. 21 Section 21. 71.47 (6) (a) 2. of the statutes is created to read:

AB1047,10,18 71.47 (6) (a) 2. Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state, if the physical work of construction or destruction in preparation for construction begins after December 31, 2004.

AB1047, s. 22 Section 22. 71.47 (6) (c) of the statutes is amended to read:

AB1047,11,2 71.47 (6) (c) No Except as provided in par. (cm), no person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began; and the claimant claims the credit for the same taxable year in which the claimant would have claimed the credit for federal purposes.

AB1047, s. 23 Section 23. 71.47 (6) (cm) of the statutes is created to read:

AB1047,11,13 71.47 (6) (cm) A person whose qualified rehabilitation expenditures do not satisfy the adjusted basis requirement under section 47 (c) (1) of the Internal Revenue Code, but who otherwise would be eligible to claim the rehabilitation credit under section 47 of the Internal Revenue Code, may claim the credit under par. (a), if the person's qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, are at least $10,000; if the rehabilitation is approved by the state historical society before the physical work of construction, or destruction in preparation for construction, begins; if the person includes evidence of such approval with the person's return; and if the person claims the credit for the same taxable year in which the person would have claimed the credit for federal purposes.

AB1047, s. 24 Section 24. 71.47 (6) (g) of the statutes is created to read:

AB1047,11,22 71.47 (6) (g) A person who has incurred qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures located in this state, as described in par. (a), but who is not a resident of this state and who is not required to file a return under this chapter, may enter into an agreement with another person, with the department's approval and in the manner prescribed by the department, so that the other person may claim the credit under this subsection, if the other person is subject to the taxes imposed under s. 71.43.

AB1047, s. 25 Section 25. 71.47 (6) (h) of the statutes is created to read:

AB1047,12,7 71.47 (6) (h) A person who receives a credit under this subsection shall add to the person's liability for taxes imposed under s. 71.43 one of the following percentages of the amount of the credits received under this subsection for rehabilitating or preserving the property if, within 5 years after the date on which the preservation or rehabilitation work that was the basis of the credit is completed, the person either sells or conveys the property by deed or land contract or the state historical society certifies to the department of revenue that the historic property has been altered to the extent that it does not comply with the standards promulgated under s. 44.02 (24):

AB1047,12,9 1. If the sale, conveyance, or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100 percent.

AB1047,12,11 2. If the sale, conveyance, or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80 percent.

AB1047,12,13 3. If the sale, conveyance, or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60 percent.

AB1047,12,15 4. If the sale, conveyance, or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40 percent.

AB1047,12,17 5. If the sale, conveyance, or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20 percent.

AB1047, s. 26 Section 26. Initial applicability.

AB1047,12,19 (1) This act first applies to taxable years beginning on January 1, 2005.

AB1047,12,20 (End)