OC7 SB1: Bill Text

SB1, s. 2017 Section 2017. 71.22 (5m) (b) of the statutes is created to read:

SB1,926,11 71.22 (5m) (b) Notwithstanding subs. (4) and (4m), section 101 of P.L. 109-222, related to extending the increased expense deduction under section 179 of the Internal Revenue Code, applies to property used in farming that is acquired and placed in service in taxable years beginning on or after January 1, 2008, and used by a person who is actively engaged in farming. For purposes of this paragraph, "actively engaged in farming" has the meaning given in 7 CFR 1400.201, and "farming" has the meaning given in section 464 (e) (1) of the Internal Revenue Code.

SB1, s. 2017d Section 2017d. 71.22 (9a) of the statutes is created to read:

SB1,926,19 71.22 (9a) "Qualified real estate investment trust" means a real estate investment trust, except a real estate investment trust of which more than 50 percent of the voting power or value of the beneficial interests or shares are owned or controlled, directly or indirectly, by a single entity that is subject to sections 301 to 385 of the Internal Revenue Code, that is not exempt under s. 71.26 (1), and that is not a real estate investment trust or a qualified real estate trust subsidiary under section 856 (i) of the Internal Revenue Code.

SB1, s. 2017f Section 2017f. 71.22 (9c) of the statutes is created to read:

SB1,926,22 71.22 (9c) "Real estate investment trust" means a real estate investment trust under section 856 of the Internal Revenue Code.

SB1, s. 2017g Section 2017g. 71.22 (9d) of the statutes is created to read:

SB1,926,25 71.22 (9d) "Real estate mortgage investment conduit" means a real estate mortgage investment conduit under section 860D of the Internal Revenue Code.

SB1, s. 2017h Section 2017h. 71.22 (9e) of the statutes is created to read:

SB1,927,3 71.22 (9e) "Regulated investment company" means a regulated investment company under section 851 of the Internal Revenue Code.

SB1, s. 2018 Section 2018. 71.24 (7) of the statutes is amended to read:

SB1,927,20 71.24 (7) Extensions. In the case of a corporation required to file a return, when sufficient reason is shown, the department of revenue may on written request shall allow an automatic extension of 30 days 7 months or until the original due date of the corporation's corresponding federal return, whichever is later, if the corporation has not received an extension on its federal return. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if a copy of any extension requested of the internal revenue service is filed with the corporation reports the extension in the manner specified by the department on the return. Termination of an automatic extension by the internal revenue service, or its refusal to grant such automatic extension, shall similarly require that any returns due under this subchapter are due on or before 30 days after the date for termination fixed by the internal revenue service. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall be subject to interest at the rate of 12% per year during such period.

SB1, s. 2019 Section 2019. 71.26 (1) (am) of the statutes is created to read:

SB1,927,23 71.26 (1) (am) Veterans service organizations. Income of a veterans service organization that is chartered under federal law.

SB1, s. 2020 Section 2020. 71.26 (1) (b) of the statutes is amended to read:

SB1,928,4 71.26 (1) (b) Political units. Income received by the United States, the state and all counties, cities, villages, towns, school districts, technical college districts, joint local water authorities created under s. 66.0823, family long-term care districts under s. 46.2895 or other political units of this state.

SB1, s. 2021e Section 2021e. 71.26 (1) (g) of the statutes is created to read:

SB1,928,8 71.26 (1) (g) For taxable years beginning after December 31, 2006, the amount of any incentive payment received by an individual under s. 23.33 (5r) in the taxable year to which the claim relates.

SB1, s. 2021m Section 2021m. 71.26 (1m) (i) of the statutes is created to read:

SB1,928,13 71.26 (1m) (i) Those issued under s. 231.03 (6), on or after the effective date of this paragraph .... [revisor inserts date], if the proceeds from the obligations that are issued are used by a health facility, as defined in s. 231.01 (5), to fund the acquisition of information technology hardware or software.

SB1, s. 2022 Section 2022. 71.26 (2) (a) of the statutes is amended to read:

SB1,929,7 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), (3h), (3n), (3p), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), (5i), (5j), and (5k) 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).

SB1, s. 2023d Section 2023d. 71.26 (2) (b) of the statutes is repealed and recreated to read:

SB1,929,11 71.26 (2) (b) Regulated investment companies, real estate investment trusts, and real estate mortgage investment conduits. 1. In this paragraph, except as provided in subds. 2. to 4., "net income" means one of the following:

SB1,929,14 a. That part of the federal regulated investment company income that is subject to federal tax as provided in sections 851 and 852 of the Internal Revenue Code, including federal undistributed net capital gain.

SB1,929,21 b. That part of the federal real estate investment trust income that is subject to federal tax as provided in sections 856 and 857 of the Internal Revenue Code, including federal undistributed net capital gain, federal net income from foreclosure property, and federal net income derived from prohibited transactions. The treatment of certain wholly owned subsidiaries under section 856 (i) of the Internal Revenue Code shall apply in computing the net income of a real estate investment trust.

SB1,929,25 c. That part of the federal real estate mortgage investment conduit income that is subject to federal tax, including federal net income derived from prohibited transactions under section 860F of the Internal Revenue Code and federal net income from foreclosure property under section 860G of the Internal Revenue Code.

SB1,930,4 2. Property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated for taxable years 1983 to 1986 under the Internal Revenue Code as amended to December 31, 1980, shall continue to be depreciated under the Internal Revenue Code as amended to December 31, 1980.

SB1,930,10 3. With regard to federal regulated investment company income, federal real estate investment trust income, and federal real estate mortgage investment conduit income, the appropriate amount shall be added or subtracted to reflect differences between the depreciation or adjusted basis for federal income tax purposes and the depreciation or adjusted basis under this chapter of any property disposed of during the taxable year.

SB1,930,14 4. The dividend paid deduction otherwise allowed by federal law in computing net income of a real estate investment trust that is subject to federal income tax shall be added back in computing the tax imposed under this chapter unless the real estate investment trust is a qualified real estate investment trust.

SB1, s. 2032 Section 2032. 71.26 (3) (s) of the statutes is amended to read:

SB1,930,18 71.26 (3) (s) Sections 951 to 964 (relating to controlled foreign corporations) are excluded, and, for taxable years beginning on or after January 1, 2006, sections 951 to 965 (relating to controlled foreign corporations) are excluded.

SB1, s. 2034 Section 2034. 71.28 (1dx) (a) 5. of the statutes is amended to read:

SB1,931,7 71.28 (1dx) (a) 5. "Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), or in a real work, real pay project position under s. 49.147 (3m), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

SB1, s. 2035 Section 2035. 71.28 (1dx) (b) 2. of the statutes is amended to read:

SB1,931,13 71.28 (1dx) (b) 2. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

SB1, s. 2036 Section 2036. 71.28 (1dx) (b) 3. of the statutes is amended to read:

SB1,931,19 71.28 (1dx) (b) 3. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

SB1, s. 2037 Section 2037. 71.28 (1dx) (b) 4. of the statutes is amended to read:

SB1,932,2 71.28 (1dx) (b) 4. The amount determined by multiplying the amount determined under s. 560.785 (1) (bm) by the number of full-time jobs retained, as provided in the rules under s. 560.785, excluding jobs for which a credit has been claimed under sub. (1dj), in an enterprise development zone under s. 560.797 and for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

SB1, s. 2038 Section 2038. 71.28 (1dx) (b) 5. of the statutes is amended to read:

SB1,932,9 71.28 (1dx) (b) 5. The amount determined by multiplying the amount determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules under s. 560.785, excluding jobs for which a credit has been claimed under sub. (1dj), in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

SB1, s. 2038h Section 2038h. 71.28 (3h) of the statutes is created to read:

SB1,932,12 71.28 (3h) Biodiesel fuel production credit. (a) Definitions. In this subsection:

SB1,932,13 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).

SB1,932,15 2. "Claimant" means a person who is engaged in the business of producing biodiesel fuel in this state and who files a claim under this subsection.

SB1,932,22 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009, and before January 1, 2013, for a claimant who produces at least 2,500,000 gallons of biodiesel fuel in this state in the taxable year, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, an amount that is equal to the number of gallons of biodiesel fuel produced by the claimant in this state in the taxable year multiplied by 10 cents.

SB1,932,24 (c) Limitations. 1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $1,000,000.

SB1,933,8 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 biodiesel fuel production, as 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.

SB1,933,10 (d) Administration. Subsection (4) (e) to (h) as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB1, s. 2039 Section 2039. 71.28 (3p) of the statutes is created to read:

SB1,933,13 71.28 (3p) Dairy manufacturing facility investment credit. (a) Definitions. In this subsection:

SB1,933,14 1. "Claimant" means a person who files a claim under this subsection.

SB1,933,16 2. "Dairy manufacturing" means processing milk into dairy products or processing dairy products for sale commercially.

SB1,933,21 3. "Dairy manufacturing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for dairy manufacturing, including the following, if used exclusively for dairy manufacturing and if acquired and placed in service in this state during taxable years that begin after December 31, 2006, and before January 1, 2015:

SB1,933,22 a. Building construction, including storage and warehouse facilities.

SB1,933,23 b. Building additions.

SB1,933,24 c. Upgrades to utilities, including water, electric, heat, and waste facilities.

SB1,933,25 d. Milk intake and storage equipment.

SB1,934,3 e. Processing and manufacturing equipment, including pipes, motors, pumps, valves, pasteurizers, homogenizers, vats, evaporators, dryers, concentrators, and churns.

SB1,934,5 f. Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying, and product movement equipment.

SB1,934,6 g. Warehouse equipment, including storage racks.

SB1,934,9 h. Waste treatment and waste management equipment, including tanks, blowers, separators, dryers, digesters, and equipment that uses waste to produce energy, fuel, or industrial products.

SB1,934,12 i. Computer software and hardware used for managing the claimant's dairy manufacturing operation, including software and hardware related to logistics, inventory management, and production plant controls.

SB1,934,14 4. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

SB1,934,20 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.207, for taxable years beginning after December 31, 2006, and before January 1, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for dairy manufacturing modernization or expansion related to the claimant's dairy manufacturing operation.

SB1,934,23 (c) Limitations. 1. No credit may be allowed under this subsection for any amount that the claimant paid for expenses described under par. (b) that the claimant also claimed as a deduction under section 162 of the Internal Revenue Code.

SB1,934,25 2. The aggregate amount of credits that a claimant may claim under this subsection is $200,000.

SB1,935,3 2m. a. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2007-08 is $600,000, as allocated under s. 560.207.

SB1,935,6 b. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.207.

SB1,935,15 3. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $200,000. 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 interest.

SB1,935,19 4. If 2 or more persons own and operate the dairy manufacturing operation, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the dairy manufacturing operation shall not exceed $200,000.

SB1,935,21 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB1,936,2 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bn).

SB1, s. 2040 Section 2040. 71.28 (3w) (a) 5m. of the statutes is created to read:

SB1,936,5 71.28 (3w) (a) 5m. "Wages" means wages under section 3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.

SB1, s. 2041 Section 2041. 71.28 (3w) (a) 6. of the statutes is amended to read:

SB1,936,11 71.28 (3w) (a) 6. "Zone payroll" means the amount of state payroll that is attributable to compensation wages paid to individuals full-time employees for services that are performed in a an enterprise zone. "Zone payroll" does not include the amount of compensation wages paid to any individuals full-time employees that exceeds $100,000.

SB1, s. 2042 Section 2042. 71.28 (3w) (b) 1. a. of the statutes is amended to read:

SB1,936,18 71.28 (3w) (b) 1. a. The claimant's zone payroll in the taxable year, minus the claimant's zone payroll number of full-time employees whose annual wages are greater than $30,000 and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $30,000 and who the claimant employed in the area that comprises the enterprise zone in the base year.

SB1, s. 2043 Section 2043. 71.28 (3w) (b) 1. b. of the statutes is amended to read:

SB1,936,24 71.28 (3w) (b) 1. b. The claimant's state payroll in the taxable year, minus the claimant's state payroll number of full-time employees whose annual wages are greater than $30,000 and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $30,000 and who the claimant employed in the state in the base year.

SB1, s. 2044 Section 2044. 71.28 (3w) (b) 2. of the statutes is amended to read:

SB1,937,6 71.28 (3w) (b) 2. Subtract the number of Determine the claimant's average zone payroll by dividing total wages for full-time employees that whose annual wages are greater than $30,000 and who the claimant employed in the area that comprises the enterprise zone in the base taxable year from by the number of full-time employees that whose annual wages are greater than $30,000 and who the claimant employed in the enterprise zone in the taxable year.

SB1, s. 2045 Section 2045. 71.28 (3w) (b) 3. of the statutes is amended to read:

SB1,937,9 71.28 (3w) (b) 3. Multiply Subtract $30,000 from the amount determined under subd. 2., but not an amount less than zero, by $30,000.

SB1, s. 2046 Section 2046. 71.28 (3w) (b) 4. of the statutes is amended to read:

SB1,937,12 71.28 (3w) (b) 4. Subtract Multiply the amount determined under subd. 3. from by the amount determined under subd. 1.

SB1, s. 2047 Section 2047. 71.28 (3w) (bm) (intro.) and 4. of the statutes are g consolidated, renumbered 71.28 (3w) (bm) and amended to read: