AB646,4,1615
71.28
(5e) Tangible personal property used in farming credit. (a)
Definitions. 16In this subsection, "claimant" means a person who files a claim under this subsection.
AB646,4,2317
(b)
Filing claims. Subject to the limitations provided under this subsection, a
18claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
19amount of those taxes, an amount that is equal to the amount of the taxes imposed
20under ss. 77.52 and 77.53 that the claimant paid in the taxable year on the purchase
21of tangible personal property that is used exclusively and directly, or consumed or
22loses its identity, in the business of farming, including dairy farming, agriculture,
23horticulture, floriculture, and custom farming services.
AB646,4,2524
(c)
Limitations. 1. The credit under par. (b) does not apply to the purchase of
25any of the following:
AB646,5,1
1a. Automobiles, trucks, or other motor vehicles for highway use.
AB646,5,42
b. Tangible personal property that is attached to, fastened to, connected to, or
3built into real property or that becomes an addition to, component of, or capital
4improvement of real property.
AB646,5,95
c. Tangible personal property used or consumed in the erection of a building or
6in the alteration, repair, or improvement of real property, regardless of any
7contribution that that personal property makes to the production process in that
8building or real property and regardless of the extent to which that personal property
9functions as a machine.
AB646,5,1710
2. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts under par. (b). A partnership,
13limited liability company, or tax-option corporation shall compute the amount of
14credit that each of its partners, members, or shareholders may claim and shall
15provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.
AB646,5,1918
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
19sub. (4), applies to the credit under this subsection.
AB646, s. 7
20Section
7. 71.30 (3) (dq) of the statutes is created to read:
AB646,5,2221
71.30
(3) (dq)
Tangible personal property used in farming credit under s. 71.28
22(5e).
AB646, s. 8
23Section
8. 71.34 (1) (g) of the statutes is amended to read:
AB646,6,3
171.34
(1) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
3(3n), (3t),
and (5b)
, and (5e) and passed through to shareholders.
AB646, s. 9
4Section
9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB646,6,105
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dx), (3n),
and (5b)
, and (5e) and not passed
7through by a partnership, limited liability company, or tax-option corporation that
8has added that amount to the partnership's, limited liability company's, or
9tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
10credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB646, s. 10
11Section
10. 71.47 (5e) of the statutes is created to read:
AB646,6,1312
71.47
(5e) Tangible personal property used in farming credit. (a)
Definitions. 13In this subsection, "claimant" means a person who files a claim under this subsection.
AB646,6,2014
(b)
Filing claims. Subject to the limitations provided under this subsection, a
15claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
16amount of those taxes, an amount that is equal to the amount of the taxes imposed
17under ss. 77.52 and 77.53 that the claimant paid in the taxable year on the purchase
18of tangible personal property that is used exclusively and directly, or consumed or
19loses its identity, in the business of farming, including dairy farming, agriculture,
20horticulture, floriculture, and custom farming services.
AB646,6,2221
(c)
Limitations. 1. The credit under par. (b) does not apply to the purchase of
22any of the following:
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a. Automobiles, trucks, or other motor vehicles for highway use.
AB646,7,3
1b. Tangible personal property that is attached to, fastened to, connected to, or
2built into real property or that becomes an addition to, component of, or capital
3improvement of real property.
AB646,7,84
c. Tangible personal property used or consumed in the erection of a building or
5in the alteration, repair, or improvement of real property, regardless of any
6contribution that that personal property makes to the production process in that
7building or real property and regardless of the extent to which that personal property
8functions as a machine.
AB646,7,169
2. Partnerships, limited liability companies, and tax-option corporations may
10not claim the credit under this subsection, but the eligibility for, and the amount of,
11the credit are based on their payment of amounts under par. (b). A partnership,
12limited liability company, or tax-option corporation shall compute the amount of
13credit that each of its partners, members, or shareholders may claim and shall
14provide that information to each of them. Partners, members of limited liability
15companies, and shareholders of tax-option corporations may claim the credit in
16proportion to their ownership interests.
AB646,7,1817
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
18s. 71.28 (4), applies to the credit under this subsection.
AB646, s. 11
19Section
11. 71.49 (1) (dq) of the statutes is created to read:
AB646,7,2120
71.49
(1) (dq)
Tangible personal property used in farming credit under s. 71.47
21(5e).
AB646, s. 12
22Section
12. 77.92 (4) of the statutes is amended to read:
AB646,8,1223
77.92
(4) "Net business income," with respect to a partnership, means taxable
24income as calculated under section
703 of the Internal Revenue Code; plus the items
25of income and gain under section
702 of the Internal Revenue Code, including taxable
1state and municipal bond interest and excluding nontaxable interest income or
2dividend income from federal government obligations; minus the items of loss and
3deduction under section
702 of the Internal Revenue Code, except items that are not
4deductible under s. 71.21; plus guaranteed payments to partners under section
707 5(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
6(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t),
and (5b)
, and (5e); and
7plus or minus, as appropriate, transitional adjustments, depreciation differences,
8and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding
9income, gain, loss, and deductions from farming. "Net business income," with respect
10to a natural person, estate, or trust, means profit from a trade or business for federal
11income tax purposes and includes net income derived as an employee as defined in
12section
3121 (d) (3) of the Internal Revenue Code.
AB646,8,1414
(1) This act first applies to taxable years beginning on January 1, 2006.