SB1,929,715 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
16the gross income as computed under the Internal Revenue Code as modified under
17sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
18computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
197., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
20under this paragraph at the time that the taxpayer first claimed the credit plus the
21amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
22(1ds), (1dx), (3g), (3h), (3n), (3p), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), (5i), (5j), and
23(5k)
and not passed through by a partnership, limited liability company, or
24tax-option corporation that has added that amount to the partnership's, limited
25liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)

1(g) plus the amount of losses from the sale or other disposition of assets the gain from
2which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
3sold or otherwise disposed of at a gain and minus deductions, as computed under the
4Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
5amount equal to the difference between the federal basis and Wisconsin basis of any
6asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
7during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
SB1, s. 2023d 8Section 2023d. 71.26 (2) (b) of the statutes is repealed and recreated to read:
SB1,929,119 71.26 (2) (b) Regulated investment companies, real estate investment trusts,
10and real estate mortgage investment conduits
. 1. In this paragraph, except as
11provided in subds. 2. to 4., "net income" means one of the following:
SB1,929,1412 a. That part of the federal regulated investment company income that is subject
13to federal tax as provided in sections 851 and 852 of the Internal Revenue Code,
14including federal undistributed net capital gain.
SB1,929,2115 b. That part of the federal real estate investment trust income that is subject
16to federal tax as provided in sections 856 and 857 of the Internal Revenue Code,
17including federal undistributed net capital gain, federal net income from foreclosure
18property, and federal net income derived from prohibited transactions. The
19treatment of certain wholly owned subsidiaries under section 856 (i) of the Internal
20Revenue Code shall apply in computing the net income of a real estate investment
21trust.
SB1,929,2522 c. That part of the federal real estate mortgage investment conduit income that
23is subject to federal tax, including federal net income derived from prohibited
24transactions under section 860F of the Internal Revenue Code and federal net
25income from foreclosure property under section 860G of the Internal Revenue Code.
SB1,930,4
12. Property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be
2depreciated for taxable years 1983 to 1986 under the Internal Revenue Code as
3amended to December 31, 1980, shall continue to be depreciated under the Internal
4Revenue Code as amended to December 31, 1980.
SB1,930,105 3. With regard to federal regulated investment company income, federal real
6estate investment trust income, and federal real estate mortgage investment conduit
7income, the appropriate amount shall be added or subtracted to reflect differences
8between the depreciation or adjusted basis for federal income tax purposes and the
9depreciation or adjusted basis under this chapter of any property disposed of during
10the taxable year.
SB1,930,1411 4. The dividend paid deduction otherwise allowed by federal law in computing
12net income of a real estate investment trust that is subject to federal income tax shall
13be added back in computing the tax imposed under this chapter unless the real estate
14investment trust is a qualified real estate investment trust.
SB1, s. 2032 15Section 2032. 71.26 (3) (s) of the statutes is amended to read:
SB1,930,1816 71.26 (3) (s) Sections 951 to 964 (relating to controlled foreign corporations) are
17excluded, and, for taxable years beginning on or after January 1, 2006, sections 951
18to 965 (relating to controlled foreign corporations) are excluded
.
SB1, s. 2034 19Section 2034. 71.28 (1dx) (a) 5. of the statutes is amended to read:
SB1,931,720 71.28 (1dx) (a) 5. "Member of a targeted group" means a person who resides
21in an area designated by the federal government as an economic revitalization area,
22a person who is employed in an unsubsidized job but meets the eligibility
23requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
24a person who is employed in a trial job, as defined in s. 49.141 (1) (n), or in a real work,
25real pay project position under s. 49.147 (3m),
a person who is eligible for child care

1assistance under s. 49.155, a person who is a vocational rehabilitation referral, an
2economically disadvantaged youth, an economically disadvantaged veteran, a
3supplemental security income recipient, a general assistance recipient, an
4economically disadvantaged ex-convict, a qualified summer youth employee, as
5defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or
6a food stamp recipient, if the person has been certified in the manner under sub. (1dj)
7(am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.
SB1, s. 2035 8Section 2035. 71.28 (1dx) (b) 2. of the statutes is amended to read:
SB1,931,139 71.28 (1dx) (b) 2. The amount determined by multiplying the amount
10determined under s. 560.785 (1) (b) by the number of full-time jobs created in a
11development zone and filled by a member of a targeted group and by then subtracting
12the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid
13under s. 49.147 (3m) (c)
for those jobs.
SB1, s. 2036 14Section 2036. 71.28 (1dx) (b) 3. of the statutes is amended to read:
SB1,931,1915 71.28 (1dx) (b) 3. The amount determined by multiplying the amount
16determined under s. 560.785 (1) (c) by the number of full-time jobs created in a
17development zone and not filled by a member of a targeted group and by then
18subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and
19reimbursements paid under s. 49.147 (3m) (c)
for those jobs.
SB1, s. 2037 20Section 2037. 71.28 (1dx) (b) 4. of the statutes is amended to read:
SB1,932,221 71.28 (1dx) (b) 4. The amount determined by multiplying the amount
22determined under s. 560.785 (1) (bm) by the number of full-time jobs retained, as
23provided in the rules under s. 560.785, excluding jobs for which a credit has been
24claimed under sub. (1dj), in an enterprise development zone under s. 560.797 and for
25which significant capital investment was made and by then subtracting the

1subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid
2under s. 49.147 (3m) (c)
for those jobs.
SB1, s. 2038 3Section 2038. 71.28 (1dx) (b) 5. of the statutes is amended to read:
SB1,932,94 71.28 (1dx) (b) 5. The amount determined by multiplying the amount
5determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as
6provided in the rules under s. 560.785, excluding jobs for which a credit has been
7claimed under sub. (1dj), in a development zone and not filled by a member of a
8targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or
9the subsidies and reimbursements paid under s. 49.147 (3m) (c)
for those jobs.
SB1, s. 2038h 10Section 2038h. 71.28 (3h) of the statutes is created to read:
SB1,932,1211 71.28 (3h) Biodiesel fuel production credit. (a) Definitions. In this
12subsection:
SB1,932,1313 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).
SB1,932,1514 2. "Claimant" means a person who is engaged in the business of producing
15biodiesel fuel in this state and who files a claim under this subsection.
SB1,932,2216 (b) Filing claims. Subject to the limitations provided in this subsection, for
17taxable years beginning after December 31, 2009, and before January 1, 2013, for a
18claimant who produces at least 2,500,000 gallons of biodiesel fuel in this state in the
19taxable year, a claimant may claim as a credit against the tax imposed under s. 71.23,
20up to the amount of the tax, an amount that is equal to the number of gallons of
21biodiesel fuel produced by the claimant in this state in the taxable year multiplied
22by 10 cents.
SB1,932,2423 (c) Limitations. 1. The maximum amount of the credit that a claimant may
24claim under this subsection in a taxable year is $1,000,000.
SB1,933,8
12. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their biodiesel fuel production, as described under par. (b).
4A partnership, limited liability company, or tax-option corporation shall compute
5the amount of credit that each of its partners, members, or shareholders may claim
6and shall provide that information to each of them. Partners, members of limited
7liability companies, and shareholders of tax-option corporations may claim the
8credit in proportion to their ownership interests.
SB1,933,109 (d) Administration. Subsection (4) (e) to (h) as it applies to the credit under sub.
10(4), applies to the credit under this subsection.
SB1, s. 2039 11Section 2039. 71.28 (3p) of the statutes is created to read:
SB1,933,1312 71.28 (3p) Dairy manufacturing facility investment credit. (a) Definitions.
13In this subsection:
SB1,933,1414 1. "Claimant" means a person who files a claim under this subsection.
SB1,933,1615 2. "Dairy manufacturing" means processing milk into dairy products or
16processing dairy products for sale commercially.
SB1,933,2117 3. "Dairy manufacturing modernization or expansion" means constructing,
18improving, or acquiring buildings or facilities, or acquiring equipment, for dairy
19manufacturing, including the following, if used exclusively for dairy manufacturing
20and if acquired and placed in service in this state during taxable years that begin
21after December 31, 2006, and before January 1, 2015:
SB1,933,2222 a. Building construction, including storage and warehouse facilities.
SB1,933,2323 b. Building additions.
SB1,933,2424 c. Upgrades to utilities, including water, electric, heat, and waste facilities.
SB1,933,2525 d. Milk intake and storage equipment.
SB1,934,3
1e. Processing and manufacturing equipment, including pipes, motors, pumps,
2valves, pasteurizers, homogenizers, vats, evaporators, dryers, concentrators, and
3churns.
SB1,934,54 f. Packaging and handling equipment, including sealing, bagging, boxing,
5labeling, conveying, and product movement equipment.
SB1,934,66 g. Warehouse equipment, including storage racks.
SB1,934,97 h. Waste treatment and waste management equipment, including tanks,
8blowers, separators, dryers, digesters, and equipment that uses waste to produce
9energy, fuel, or industrial products.
SB1,934,1210 i. Computer software and hardware used for managing the claimant's dairy
11manufacturing operation, including software and hardware related to logistics,
12inventory management, and production plant controls.
SB1,934,1413 4. "Used exclusively" means used to the exclusion of all other uses except for
14use not exceeding 5 percent of total use.
SB1,934,2015 (b) Filing claims. Subject to the limitations provided in this subsection and s.
16560.207, for taxable years beginning after December 31, 2006, and before January
171, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.23,
18up to the amount of the tax, an amount equal to 10 percent of the amount the
19claimant paid in the taxable year for dairy manufacturing modernization or
20expansion related to the claimant's dairy manufacturing operation.
SB1,934,2321 (c) Limitations. 1. No credit may be allowed under this subsection for any
22amount that the claimant paid for expenses described under par. (b) that the
23claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
SB1,934,2524 2. The aggregate amount of credits that a claimant may claim under this
25subsection is $200,000.
SB1,935,3
12m. a. The maximum amount of the credits that may be claimed under this
2subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2007-08 is $600,000, as
3allocated under s. 560.207.
SB1,935,64 b. The maximum amount of the credits that may be claimed under this
5subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal
6year thereafter, is $700,000, as allocated under s. 560.207.
SB1,935,157 3. Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their payment of expenses under par. (b), except that the
10aggregate amount of credits that the entity may compute shall not exceed $200,000.
11A partnership, limited liability company, or tax-option corporation shall compute
12the amount of credit that each of its partners, members, or shareholders may claim
13and shall provide that information to each of them. Partners, members of limited
14liability companies, and shareholders of tax-option corporations may claim the
15credit in proportion to their ownership interest.
SB1,935,1916 4. If 2 or more persons own and operate the dairy manufacturing operation,
17each person may claim a credit under par. (b) in proportion to his or her ownership
18interest, except that the aggregate amount of the credits claimed by all persons who
19own and operate the dairy manufacturing operation shall not exceed $200,000.
SB1,935,2120 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
21under sub. (4), applies to the credit under this subsection.
SB1,936,222 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
23due under s. 71.23 or no tax is due under s. 71.23, the amount of the claim not used
24to offset the tax due shall be certified by the department of revenue to the department

1of administration for payment by check, share draft, or other draft drawn from the
2appropriation account under s. 20.835 (2) (bn).
SB1, s. 2040 3Section 2040. 71.28 (3w) (a) 5m. of the statutes is created to read:
SB1,936,54 71.28 (3w) (a) 5m. "Wages" means wages under section 3306 (b) of the Internal
5Revenue Code, determined without regard to any dollar limitations.
SB1, s. 2041 6Section 2041. 71.28 (3w) (a) 6. of the statutes is amended to read:
SB1,936,117 71.28 (3w) (a) 6. "Zone payroll" means the amount of state payroll that is
8attributable to compensation wages paid to individuals full-time employees for
9services that are performed in a an enterprise zone. "Zone payroll" does not include
10the amount of compensation wages paid to any individuals full-time employees that
11exceeds $100,000.
SB1, s. 2042 12Section 2042. 71.28 (3w) (b) 1. a. of the statutes is amended to read:
SB1,936,1813 71.28 (3w) (b) 1. a. The claimant's zone payroll in the taxable year, minus the
14claimant's zone payroll
number of full-time employees whose annual wages are
15greater than $30,000 and who the claimant employed in the enterprise zone in the
16taxable year, minus the number of full-time employees whose annual wages were
17greater than $30,000 and who the claimant employed in the area that comprises the
18enterprise zone
in the base year.
SB1, s. 2043 19Section 2043. 71.28 (3w) (b) 1. b. of the statutes is amended to read:
SB1,936,2420 71.28 (3w) (b) 1. b. The claimant's state payroll in the taxable year, minus the
21claimant's state payroll
number of full-time employees whose annual wages are
22greater than $30,000 and who the claimant employed in the state in the taxable year,
23minus the number of full-time employees whose annual wages were greater than
24$30,000 and who the claimant employed in the state
in the base year.
SB1, s. 2044 25Section 2044. 71.28 (3w) (b) 2. of the statutes is amended to read:
SB1,937,6
171.28 (3w) (b) 2. Subtract the number of Determine the claimant's average
2zone payroll by dividing total wages for
full-time employees that whose annual
3wages are greater than $30,000 and who
the claimant employed in the area that
4comprises
the enterprise zone in the base taxable year from by the number of
5full-time employees that whose annual wages are greater than $30,000 and who the
6claimant employed in the enterprise zone in the taxable year.
SB1, s. 2045 7Section 2045. 71.28 (3w) (b) 3. of the statutes is amended to read:
SB1,937,98 71.28 (3w) (b) 3. Multiply Subtract $30,000 from the amount determined under
9subd. 2., but not an amount less than zero, by $30,000.
SB1, s. 2046 10Section 2046. 71.28 (3w) (b) 4. of the statutes is amended to read:
SB1,937,1211 71.28 (3w) (b) 4. Subtract Multiply the amount determined under subd. 3. from
12by the amount determined under subd. 1.
SB1, s. 2047 13Section 2047. 71.28 (3w) (bm) (intro.) and 4. of the statutes are g consolidated,
14renumbered 71.28 (3w) (bm) and amended to read:
SB1,937,2415 71.28 (3w) (bm) Filing supplemental claims. In addition to the credit under
16par. (b) and subject to the limitations provided in this subsection and s. 560.799, a
17claimant may claim as a credit against the tax imposed under s. 71.23 an amount
18equal to all of the following: 4. The the amount the claimant paid in the taxable year
19to upgrade or improve the job-related skills of any of the claimant's full-time
20employees, to train any of the claimant's full-time employees on the use of
21job-related new technologies, or to train provide job-related training to any
22full-time employee whose employment with the claimant represents the employee's
23first full-time job. This subdivision does not apply to employees who do not work in
24 a an enterprise zone.
SB1, s. 2048 25Section 2048. 71.28 (3w) (bm) 3. of the statutes is repealed.
SB1, s. 2049
1Section 2049. 71.28 (3w) (d) of the statutes is amended to read:
SB1,938,52 71.28 (3w) (d) Administration. Subsection (4) (g) and (h), as it applies to the
3credit under sub. (4), applies to the credit under this subsection. Claimants shall
4include with their returns a copy of their certification for tax benefits, and a copy of
5the verification of their expenses, from the department of commerce.
SB1, s. 2050 6Section 2050. 71.28 (5b) (c) 1. of the statutes is amended to read:
SB1,938,97 71.28 (5b) (c) 1. The Except as provided in s. 73.03 (63), the maximum amount
8of the credits that may be claimed under this subsection and ss. 71.07 (5b) and 71.47
9(5b) for all taxable years combined is $35,000,000 $52,500,000.
SB1, s. 2051 10Section 2051. 71.28 (5b) (d) of the statutes is renumbered 71.28 (5b) (d) 1.
SB1, s. 2052 11Section 2052. 71.28 (5b) (d) 2. of the statutes is created to read:
SB1,938,1712 71.28 (5b) (d) 2. The Wisconsin adjusted basis of any investment for which a
13credit is claimed under par. (b) shall be reduced by the amount of the credit that is
14offset against Wisconsin income taxes. The Wisconsin basis of a partner's interest
15in a partnership, a member's interest in a limited liability company, or stock in a
16tax-option corporation shall be adjusted to reflect adjustments made under this
17subdivision.
SB1, s. 2053 18Section 2053. 71.28 (5e) (b) of the statutes is amended to read:
SB1,939,219 71.28 (5e) (b) Filing claims. Subject to the limitations provided in this
20subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
21taxable year following the taxable year in which the claimant claims an exemption
22a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
23the taxes imposed under s. 71.23, up to the amount of those taxes, in each taxable
24year for 2 years, the amount certified by the department of commerce that resulted

1from
the claimant claimed as an exemption claiming a deduction under s. 77.54 (48)
277.585 (9).
SB1, s. 2054 3Section 2054. 71.28 (5e) (c) 1. of the statutes is amended to read:
SB1,939,54 71.28 (5e) (c) 1. No credit may be allowed under this subsection unless the
5claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).
SB1, s. 2055 6Section 2055. 71.28 (5e) (c) 3. of the statutes is amended to read:
SB1,939,107 71.28 (5e) (c) 3. The total amount of the credits and exemptions the sales and
8use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
9by all claimants under this subsection and ss. 71.07 (5e), 71.47 (5e), and 77.54 (48)
1077.585 (9) is $7,500,000, as determined by the department of commerce.
SB1, s. 2056 11Section 2056. 71.28 (5h) (a) 4. of the statutes is amended to read:
SB1,939,1912 71.28 (5h) (a) 4. "Previously owned property" means real property that the
13claimant or a related person owned during the 2 years prior to doing business in this
14state as a film production company and for which the claimant may not deduct a loss
15from the sale of the property to, or an exchange of the property with, the related
16person under section 267 of the Internal Revenue Code, except that section 267 of the
17Internal Revenue Code is modified so that if the claimant owns any part of the
18property, rather than 50 percent ownership, the claimant is subject to section 267 of
19the Internal Revenue Code for purposes of this subsection
.
SB1, s. 2057 20Section 2057. 71.28 (5h) (c) 2. of the statutes is amended to read:
SB1,939,2521 71.28 (5h) (c) 2. A claimant may claim the credit under par. (b) 2. for an amount
22expended to construct, rehabilitate, remodel, or repair real property, if the claimant
23began the physical work of construction, rehabilitation, remodeling, or repair, or any
24demolition or destruction in preparation for the physical work, after December 31,
252007, or if and the completed project is placed in service after December 31, 2007.
SB1, s. 2058
1Section 2058. 71.28 (5h) (c) 3. of the statutes is amended to read:
SB1,940,52 71.28 (5h) (c) 3. A claimant may claim the credit under par. (b) 2. for an amount
3expended to acquire real property, if the property is not previously owned property
4and if the claimant acquires the property after December 31, 2007, or if and the
5completed project is placed in service after December 31, 2007.
Loading...
Loading...