AB794: Bill Text

AB794,7,3 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), (2dy), (2fd), (3m), (3n), (3p), (3s), (3t), (3w), (5b), (5d), (5e), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w), and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m), (3), (3n), (3t), and (3w), 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:

AB794, s. 7 Section 7. 71.10 (4) (gv) of the statutes is created to read:

AB794,7,5 71.10 (4) (gv) Economic development tax credit under s. 71.07 (2dy).

AB794, s. 8 Section 8. 71.21 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB794,7,11 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added to the partnership's income.

AB794, s. 9 Section 9. 71.26 (2) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB794,8,6 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), (1dy), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (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).

AB794, s. 10 Section 10. 71.28 (1dy) of the statutes is created to read:

AB794,8,10 71.28 (1dy) Economic development tax credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

AB794,8,14 (b) Filing claims. Subject to the limitations under this subsection and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2007, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, the amount authorized for the claimant under s. 560.703.

AB794,8,18 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

AB794,9,2 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 authorization to claim tax benefits under s. 560.703. 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.

AB794,9,4 (d) Administration. 1. Except as provided in subd. 2., sub. (4) (e) and (f), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB794,9,13 2. If a claimant's certification is revoked under s. 560.705, or if a claimant becomes ineligible for tax benefits under s. 560.702, the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.23 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

AB794,9,15 3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB794, s. 11 Section 11. 71.30 (3) (em) of the statutes is renumbered 71.30 (3) (eh).

AB794, s. 12 Section 12. 71.30 (3) (ema) of the statutes is created to read:

AB794,9,18 71.30 (3) (ema) Economic development tax credit under s. 71.28 (1dy).

AB794, s. 13 Section 13. 71.30 (3) (emb) of the statutes is renumbered 71.30 (3) (ei).

AB794, s. 14 Section 14. 71.30 (3) (en) of the statutes is renumbered 71.30 (3) (ej).

AB794, s. 15 Section 15. 71.30 (3) (eo) of the statutes is renumbered 71.30 (3) (ek).

AB794, s. 16 Section 16. 71.30 (3) (eom) of the statutes is renumbered 71.30 (3) (eL).

AB794, s. 17 Section 17. 71.34 (1) (g) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB794,10,4 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), (1dy), (3), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to shareholders.

AB794, s. 18 Section 18. 71.45 (2) (a) 10. of the statutes is amended to read:

AB794,10,11 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx) (1dy), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (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) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

AB794, s. 19 Section 19. 71.47 (1dy) of the statutes is created to read:

AB794,10,15 71.47 (1dy) Economic development tax credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

AB794,10,19 (b) Filing claims. Subject to the limitations under this subsection and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2007, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of the tax, the amount authorized for the claimant under s. 560.703.

AB794,10,23 (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

AB794,11,6 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 authorization to claim tax benefits under s. 560.703. 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.

AB794,11,9 (d) Administration. 1. Except as provided in subd. 2., section 71.28 (4) (e) and (f), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB794,11,18 2. If a claimant's certification is revoked under s. 560.705, or if a claimant becomes ineligible for tax benefits under s. 560.702, the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.43 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

AB794,11,20 3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB794, s. 20 Section 20. 71.49 (1) (em) of the statutes is renumbered 71.49 (1) (eh).

AB794, s. 21 Section 21. 71.49 (1) (ema) of the statutes is created to read:

AB794,11,23 71.49 (1) (ema) Economic development tax credit under s. 71.47 (1dy).

AB794, s. 22 Section 22. 71.49 (1) (emb) of the statutes is renumbered 71.49 (1) (ei).

AB794, s. 23 Section 23. 71.49 (1) (en) of the statutes is renumbered 71.49 (1) (ej).

AB794, s. 24 Section 24. 71.49 (1) (eo) of the statutes is renumbered 71.49 (1) (ek).

AB794, s. 25 Section 25. 71.49 (1) (eom) of the statutes is renumbered 71.49 (1) (eL).

AB794, s. 26 Section 26. 76.637 of the statutes is created to read:

AB794,12,6 76.637 Economic development tax credit. (1) Definition. In this section, "claimant" means an insurer who files a claim under this section and is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.

AB794,12,10 (2) Filing claims. Subject to the limitations under this section and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2007, a claimant may claim as a credit against the fees due under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the amount authorized for the claimant under s. 560.703.

AB794,12,14 (3) Limitations. No credit may be allowed under this section unless the insurer includes with the insurer's annual return under s. 76.64 a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

AB794,12,24 (4) Administration. If an insurer's certification is revoked under s. 560.705, or if an insurer becomes ineligible for tax benefits under s. 560.702, the insurer may not claim credits under this section for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the insurer becomes ineligible for tax benefits; or succeeding taxable years and the insurer may not carry over unused credits from previous years to offset the fees imposed under ss. 76.60, 76.63, 76.65, 76.66, or 76.67 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the insurer becomes ineligible for tax benefits; or succeeding taxable years.

AB794, s. 27 Section 27. 76.67 (2) of the statutes is amended to read:

AB794,13,10 76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credits under ss. 76.635, 76.636, and 76.655, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss. 76.635, 76.636, 76.637, and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.

AB794, s. 28 Section 28. 77.92 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB794,14,3 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), (2dy), (3g), (3h), (3s), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k); 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.

AB794, s. 29 Section 29. 234.03 (2m) of the statutes is amended to read:

AB794,14,6 234.03 (2m) To issue notes and bonds in accordance with ss. 234.08, 234.40, 234.50, 234.60, 234.61, 234.626, 234.63, 234.65, and 234.66.

AB794, s. 30 Section 30. 234.03 (11) of the statutes is amended to read:

AB794,14,11 234.03 (11) To collect fees and charges on mortgage loans and economic development loans and airport development loans under s. 234.63 (3) , 2007 stats., for the purpose of paying all or a portion of authority costs as the authority determines are reasonable and as approved by the authority.

AB794, s. 31 Section 31. 234.08 (1) of the statutes is amended to read:

AB794,15,2 234.08 (1) The authority may issue its negotiable notes and bonds in such principal amount, as, in the opinion of the authority, is necessary to provide sufficient funds for achieving its corporate purposes, including the purchase of certain mortgages and securities and the making of secured loans for low- and moderate-income housing, for the rehabilitation of existing structures and for the construction of facilities appurtenant thereto as provided in this chapter; for the making of secured loans to assist eligible elderly homeowners in paying property taxes and special assessments; for the payment of interest on notes and bonds of the authority during construction; for the awarding of airport development loans under s. 234.63 (3); for the establishment of reserves to secure such notes and bonds; for the provision of moneys for the housing development fund in order to make temporary loans to sponsors of housing projects as provided in this chapter; and for all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers.

AB794, s. 32 Section 32. 234.265 (2) of the statutes is amended to read:

AB794,15,10 234.265 (2) Records or portions of records consisting of personal or financial information provided by a person seeking a grant or loan under s. 234.63, 2007 stats., or s. 234.04, 234.08, 234.49, 234.59, 234.61, 234.63, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or 234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance under s. 234.66, seeking investment of funds under s. 234.03 (18m), or in which the authority has invested funds under s. 234.03 (18m), unless the person consents to disclosure of the information.

AB794, s. 33 Section 33. 234.40 (4) of the statutes is amended to read:

AB794,15,16 234.40 (4) The limitations established in ss. 234.18, 234.50, 234.60, 234.61, 234.63, 234.65, and 234.66 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for veterans housing loans in an aggregate principal amount exceeding $61,945,000, excluding bonds being issued to refund outstanding bonds.

AB794, s. 34 Section 34. 234.50 (4) of the statutes is amended to read:

AB794,15,24 234.50 (4) The limitations established in ss. 234.18, 234.40, 234.60, 234.61, 234.63, 234.65, and 234.66 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.

AB794, s. 35 Section 35. 234.60 (2) of the statutes is amended to read:

AB794,16,2 234.60 (2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, 234.63, 234.65, and 234.66 do not apply to bonds or notes issued under this section.

AB794, s. 36 Section 36. 234.61 (1) of the statutes is amended to read:

AB794,16,11 234.61 (1) Upon the authorization of the department of health and family services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health and family services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18, 234.40, 234.50, 234.60, 234.63, 234.65, and 234.66 do not apply to bonds or notes issued under this section. The definition of "nonprofit corporation" in s. 234.01 (9) does not apply to this section.

AB794, s. 37 Section 37. 234.63 of the statutes is repealed.

AB794, s. 38 Section 38. 234.66 (3) (b) of the statutes is amended to read:

AB794,16,15 234.66 (3) (b) The limits in ss. 234.18, 234.40, 234.50, 234.60, 234.61, 234.63, and 234.65 do not apply to bonds or notes issued under this section.

AB794, s. 39 Section 39. 560.01 (2) (am) of the statutes is created to read:

AB794,16,23 560.01 (2) (am) Economic development assistance reporting. Annually, no later than October 1, the department shall submit to the joint legislative audit committee and to the appropriate standing committees of the legislature under s. 13.172 (3) a comprehensive report assessing economic development programs administered by the department. The department shall make readily accessible to the public on an Internet-based system the information required under this paragraph. The report shall include all of the following information for each program:

AB794,16,24 1. A description of the program.

AB794,17,2 2. Quantifiable performance measures directly related to the purpose of the program including, when applicable, all of the following information:

AB794,17,4 a. An accounting of the location, by municipality, of each job created or retained in the state in the previous fiscal year as a result of the program.

AB794,17,6 b. An accounting of the industry classification, by municipality, of each job created or retained in the state in the previous fiscal year as a result of the program.

AB794,17,7 3. A comparison of expected and actual program outcomes.

AB794,17,8 4. The number of grants made under the program in the previous fiscal year.

AB794,17,9 5. The number of loans made under the program in the previous fiscal year.

AB794,17,11 6. The amount of tax benefits allocated and verified under the program in the previous fiscal year.

AB794,17,13 7. The amount of each grant and loan made under the program in the previous fiscal year.

AB794,17,15 8. The recipient of each grant or loan made under the program in the previous fiscal year.

AB794,17,17 9. The recipients of tax benefits allocated and verified under the program in the previous fiscal year.

AB794,17,19 10. The sum total of all grants and loans awarded to and received by each recipient under the program in the previous fiscal year.

AB794,17,20 11. Any recommended changes to the program.

AB794, s. 40 Section 40. 560.605 (2m) (g) of the statutes is repealed.

AB794, s. 41 Section 41. 560.605 (7) (b) 5. of the statutes is repealed.

AB794, s. 42 Section 42. Subchapter VI (title) of chapter 560 [precedes s. 560.70] of the statutes is repealed and recreated to read:

AB794,17,25 CHAPTER 560

AB794,18,3 SUBCHAPTER VI Tax incentives for business development in Wisconsin