AB892: Bill Text

AB892,2,8 71.07 (5e) Internet equipment credit. (a) Definitions. In this subsection:

AB892,2,9 1. "Claimant" means a person who files a claim under this subsection.

AB892,2,12 2. "Internet equipment used in the broadband market" means equipment that is capable of transmitting data packets or Internet signals at speeds of at least 200 kilobits per second in either direction.

AB892,2,20 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, an amount that is equal to the amount of the taxes imposed under subchs. III and V of ch. 77 that the claimant paid in the taxable year on the purchase of Internet equipment used in the broadband market to provide Internet availability to areas of the state that are not served by a broadband service provider or are served by not more than one broadband service provider, as determined by the department of commerce.

AB892,3,14 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant certifies to the department of commerce, in the manner prescribed by the department, that the claimant will, within 24 months after the effective date of this subdivision .... [revisor inserts date], make an investment that is reasonably calculated to increase Internet availability in this state and in an amount equal to at least 20 percent of the amount the claimant paid in taxes imposed under subchs. III and V of ch. 77 on the purchase of Internet equipment used in the broadband market during the 12-month period beginning on the effective date of this subdivision .... [revisor inserts date]. The claimant shall, within 60 days after the end of the year in which the investment is made, file a report with the department of administration that provides a detailed description of the investment, including the amount invested. The department of administration shall provide copies of the report to the department of commerce, the department of revenue, and the public service commission.

AB892,3,22 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB892,3,25 3. The total amount of the credits that may be claimed by all claimants under this subsection and ss. 71.28 (5e) and 71.47 (5e) is $7,500,000, as determined by the department of commerce.

AB892,4,2 (d) 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.

AB892, s. 3 Section 3. 71.10 (4) (gy) of the statutes is created to read:

AB892,4,4 71.10 (4) (gy) Internet equipment credit under s. 71.07 (5e).

AB892, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

AB892,4,8 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), and (5b), and (5e) and passed through to partners shall be added to the partnership's income.

AB892, s. 5 Section 5. 71.26 (2) (a) of the statutes is amended to read:

AB892,5,2 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), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3n), (3t), and (5b), and (5e) 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).

AB892, s. 6 Section 6. 71.28 (5e) of the statutes is created to read:

AB892,5,4 71.28 (5e) Internet equipment credit. (a) Definitions. In this subsection:

AB892,5,5 1. "Claimant" means a person who files a claim under this subsection.

AB892,5,8 2. "Internet equipment used in the broadband market" means equipment that is capable of transmitting data packets or Internet signals at speeds of at least 200 kilobits per second in either direction.

AB892,5,16 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of those taxes, an amount that is equal to the amount of the taxes imposed under subchs. III and V of ch. 77 that the claimant paid in the taxable year on the purchase of Internet equipment used in the broadband market to provide Internet availability to areas of the state that are not served by a broadband service provider or are served by not more than one broadband service provider, as determined by the department of commerce.

AB892,6,5 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant certifies to the department of commerce, in the manner prescribed by the department, that the claimant will, within 24 months after the effective date of this subdivision .... [revisor inserts date], make an investment that is reasonably calculated to increase Internet availability in this state and in an amount equal to at least 20 percent of the amount the claimant paid in taxes imposed under subchs. III and V of ch. 77 on the purchase of Internet equipment used in the broadband market during the 12-month period beginning on the effective date of this subdivision .... [revisor inserts date]. The claimant shall, within 60 days after the end of the year in which the investment is made, file a report with the department of administration that provides a detailed description of the investment, including the amount invested. The department of administration shall provide copies of the report to the department of commerce, the department of revenue, and the public service commission.

AB892,6,13 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB892,6,16 3. The total amount of the credits that may be claimed by all claimants under this subsection and ss. 71.07 (5e) and 71.47 (5e) is $7,500,000, as determined by the department of commerce.

AB892,6,18 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB892, s. 7 Section 7. 71.30 (3) (es) of the statutes is created to read:

AB892,6,20 71.30 (3) (es) Internet equipment credit under s. 71.28 (5e).

AB892, s. 8 Section 8. 71.34 (1) (g) of the statutes is amended to read:

AB892,6,24 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), (1dm), (1ds), (1dx), (3), (3g), (3n), (3t), and (5b), and (5e) and passed through to shareholders.

AB892, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

AB892,7,6 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), and (5b), and (5e) 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), (3t), (4), and (5).

AB892, s. 10 Section 10. 71.47 (5e) of the statutes is created to read:

AB892,7,8 71.47 (5e) Internet equipment credit. (a) Definitions. In this subsection:

AB892,7,9 1. "Claimant" means a person who files a claim under this subsection.

AB892,7,12 2. "Internet equipment used in the broadband market" means equipment that is capable of transmitting data packets or Internet signals at speeds of at least 200 kilobits per second in either direction.

AB892,7,20 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount that is equal to the amount of the taxes imposed under subchs. III and V of ch. 77 that the claimant paid in the taxable year on the purchase of Internet equipment used in the broadband market to provide Internet availability to areas of the state that are not served by a broadband service provider or are served by not more than one broadband service provider, as determined by the department of commerce.

AB892,8,9 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant certifies to the department of commerce, in the manner prescribed by the department, that the claimant will, within 24 months after the effective date of this subdivision .... [revisor inserts date], make an investment that is reasonably calculated to increase Internet availability in this state and in an amount equal to at least 20 percent of the amount the claimant paid in taxes imposed under subchs. III and V of ch. 77 on the purchase of Internet equipment used in the broadband market during the 12-month period beginning on the effective date of this subdivision .... [revisor inserts date]. The claimant shall, within 60 days after the end of the year in which the investment is made, file a report with the department of administration that provides a detailed description of the investment, including the amount invested. The department of administration shall provide copies of the report to the department of commerce, the department of revenue, and the public service commission.

AB892,8,17 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB892,8,20 3. The total amount of the credits that may be claimed by all claimants under this subsection and ss. 71.07 (5e) and 71.28 (5e) is $7,500,000, as determined by the department of commerce.

AB892,8,22 (d) 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.

AB892, s. 11 Section 11. 71.49 (1) (es) of the statutes is created to read:

AB892,8,24 71.49 (1) (es) Internet equipment credit under s. 71.47 (5e).

AB892, s. 12 Section 12. 77.92 (4) of the statutes is amended to read:

AB892,9,15 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, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), and (5b), and (5e); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); 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 employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB892, s. 13 Section 13. Nonstatutory provisions.

AB892,9,17 (1) Internet equipment credit program.

AB892,9,21 (a) Not later than 30 days after the effective date of this subsection, the department of commerce shall implement a program for certifying businesses as eligible for tax credits under sections 71.07 (5e), 71.28 (5e), and 71.47 (5e) of the statutes.

AB892,9,25 (b) If the department of commerce certifies a business as eligible under paragraph (a), the department shall determine the maximum amount of tax credits the business may claim, subject to paragraph (c ). The department of commerce may not allocate tax credits to a business unless the allocation of tax credits to the business is likely to increase the availability of Internet service in an area of this state that lacks adequate service, as determined by the department. The total amount of tax credits allocated to all eligible businesses may not exceed $7,500,000. The department of commerce shall complete the certifications and determinations under this paragraph and paragraph (a ) not later than the first day of the 7th month after the effective date of this subsection.

AB892,10,21 (c) Not later than 10 days after the department of commerce completes the certifications and determinations under paragraphs (a ) and (b), the department of commerce shall submit to the joint committee on finance a report identifying the businesses certified under this subsection and the maximum amount of tax credits each business may claim. If the cochairpersons of the committee do not notify the department of commerce within 14 working days after the department of commerce submits the report that the committee has scheduled a meeting to review the department of commerce's certifications and determinations, the department of commerce shall notify the department of revenue of the department of commerce's certifications and determination. If, within 14 working days after the department of commerce submits the report, the cochairpersons of the committee notify the department of commerce that the committee has scheduled a meeting to review the proposal, the department of commerce may not notify the department of revenue of the department of commerce's certifications and determinations unless one of the following is true:

AB892,10,23 1. The committee approves the department of commerce's certifications and determinations.

AB892,11,3 2. The committee does not hold a meeting to review the proposal within 30 days after the cochairpersons notify the department of commerce that a meeting has been scheduled.

AB892,11,15 (d) Notwithstanding section 227.24 of the statutes, the department of commerce may promulgate emergency rules necessary to administer this subsection. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, emergency rules promulgated under this subsection remain in effect until the department of commerce notifies the department of revenue of the department of commerce's certifications and determinations, or the first day of the 13th month after the effective date of this subsection, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department of commerce is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB892, s. 14 Section 14. Initial applicability.

AB892,11,20 (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 taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB892,11,21 (End)