AB642,3,1615 (c) Limitations. 1. A partnership, limited liability company, or tax-option
16corporation may not claim the credit under this subsection. The partners of a
17partnership, members of a limited liability company, or shareholders in a tax-option

1corporation may claim the credit under this subsection based on eligible costs
2incurred by the partnership, company, or tax-option corporation. The partnership,
3limited liability company, or tax-option corporation shall calculate the amount of the
4credit which may be claimed by each partner, member, or shareholder and shall
5provide that information to the partner, member, or shareholder. For shareholders
6of a tax-option corporation, the credit may be allocated in proportion to the
7ownership interest of each shareholder. Credits computed by a partnership or
8limited liability company may be claimed in proportion to the ownership interests
9of the partners or members or allocated to partners or members as provided in a
10written agreement among the partners or members that is entered into no later than
11the last day of the taxable year of the partnership or limited liability company, for
12which the credit is claimed. Any partner or member who claims the credit as
13provided under this paragraph shall attach a copy of the agreement, if applicable, to
14the tax return on which the credit is claimed. A person claiming the credit as
15provided under this paragraph is solely responsible for any tax liability arising from
16a dispute with the department of revenue related to claiming the credit.
AB642,3,2217 2. The tax basis of a claimant's interest in a partnership, limited liability
18company, or tax-option corporation shall be reduced, but not below zero, by the
19amount of any credit claimed under this subsection. The credit claimed under this
20subsection shall not be limited to the amount of the adjusted tax basis for the
21claimant's interest in a partnership, limited liability company, or tax-option
22corporation.
AB642,4,423 3. Any claimant who transfers an interest in a partnership, limited liability
24company, or tax-option corporation after the first credit allowance date, as defined
25under 26 USC 45D (b), but before the final credit allowance date for the credit

1allowed under this subsection shall be entitled to claim the credit for the remaining
2credit allowance dates by filing with the claimant's return a written agreement
3between the claimant and the transferee of the interest that specifies that the
4claimant, not the transferee, is the person entitled to claim the credit.
AB642,4,654. The limitation under section 469 (a) (1) (B) of the Internal Revenue Code does
6not apply to the credit under this subsection.
AB642,4,87 (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
8under s. 71.28 (4), applies to the credit under this subsection.
AB642,4,119 2. No credit may be allowed under this subsection unless the claimant includes
10with the claimant's return a copy of the claimant's certification for tax benefits under
11s. 560.2065 (2).
AB642, s. 2 12Section 2. 71.08 (1) (intro.) of the statutes, as affected by 2009 Wisconsin Act
1328
, is amended to read:
AB642,4,2314 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
15couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
16ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
17(3q), (3r), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8r), and (9e),
1871.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w),
1971.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w),
2071.57 to 71.61, and 71.613 and subch. VIII and payments to other states under s.
2171.07 (7), is less than the tax under this section, there is imposed on that natural
22person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02,
23an alternative minimum tax computed as follows:
AB642, s. 3 24Section 3. 71.10 (4) (fm) of the statutes is created to read:
AB642,4,2525 71.10 (4) (fm) Supplement to federal new markets credit under s. 71.07 (5n).
AB642, s. 4
1Section 4. 71.28 (5n) of the statutes is created to read:
AB642,5,32 71.28 (5n) Supplement to federal new markets credit. (a) Definition. In this
3subsection, "claimant" means a person who files a claim under this subsection.
AB642,5,94 (b) Filing claims. Subject to the limitations provided under this subsection and
5s. 560.2065, a claimant may claim as a credit against the taxes imposed under s.
671.23, up to the amount of the taxes, the amount the claimant paid to a qualified
7community development entity, as defined under 26 USC 45D (c), for a qualified
8equity investment, as defined under 26 USC 45D (b), at its original issue, multiplied
9by the following percentage:
AB642,5,1110 1. For the taxable years that correspond to the first 3 credit allowance dates,
11as defined under 26 USC 45D (a) (3), 5 percent.
AB642,5,1412 2. For the taxable years that correspond to the 4 credit allowance dates, as
13defined under 26 USC 45D (a) (3), following the credit allowance dates described in
14subd. 1., 6 percent.
AB642,6,815 (c) Limitations. 1. A partnership, limited liability company, or tax-option
16corporation may not claim the credit under this subsection. The partners of a
17partnership, members of a limited liability company, or shareholders in a tax-option
18corporation may claim the credit under this subsection based on eligible costs
19incurred by the partnership, company, or tax-option corporation. The partnership,
20limited liability company, or tax-option corporation shall calculate the amount of the
21credit which may be claimed by each partner, member, or shareholder and shall
22provide that information to the partner, member, or shareholder. For shareholders
23of a tax-option corporation, the credit may be allocated in proportion to the
24ownership interest of each shareholder. Credits computed by a partnership or
25limited liability company may be claimed in proportion to the ownership interests

1of the partners or members or allocated to partners or members as provided in a
2written agreement among the partners or members that is entered into no later than
3the last day of the taxable year of the partnership or limited liability company, for
4which the credit is claimed. Any partner or member who claims the credit as
5provided under this paragraph shall attach a copy of the agreement, if applicable, to
6the tax return on which the credit is claimed. A person claiming the credit as
7provided under this paragraph is solely responsible for any tax liability arising from
8a dispute with the department of revenue related to claiming the credit.
AB642,6,149 2. The tax basis of a claimant's interest in a partnership, limited liability
10company, or tax-option corporation shall be reduced, but not below zero, by the
11amount of any credit claimed under this subsection. The credit claimed under this
12subsection shall not be limited to the amount of the adjusted tax basis for the
13claimant's interest in a partnership, limited liability company, or tax-option
14corporation.
AB642,6,2115 3. Any claimant who transfers an interest in a partnership, limited liability
16company, or tax-option corporation after the first credit allowance date, as defined
17under 26 USC 45D (b), but before the final credit allowance date for the credit
18allowed under this subsection shall be entitled to claim the credit for the remaining
19credit allowance dates by filing with the claimant's return a written agreement
20between the claimant and the transferee of the interest that specifies that the
21claimant, not the transferee, is the person entitled to claim the credit.
AB642,6,23224. The limitation under section 469 (a) (1) (B) of the Internal Revenue Code does
23not apply to the credit under this subsection.
AB642,6,2524 (d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit under
25sub. (4), applies to the credit under this subsection.
AB642,7,3
12. No credit may be allowed under this subsection unless the claimant includes
2with the claimant's return a copy of the claimant's certification for tax benefits under
3s. 560.2065 (2).
AB642, s. 5 4Section 5. 71.30 (3) (dn) of the statutes is created to read:
AB642,7,55 71.30 (3) (dn) Supplement to federal new markets credit under s. 71.28 (5n).
AB642, s. 6 6Section 6. 71.47 (5n) of the statutes is created to read:
AB642,7,87 71.47 (5n) Supplement to federal new markets credit. (a) Definition. In this
8subsection, "claimant" means a person who files a claim under this subsection.
AB642,7,149 (b) Filing claims. Subject to the limitations provided under this subsection and
10s. 560.2065, a claimant may claim as a credit against the taxes imposed under s.
1171.43, up to the amount of the taxes, the amount the claimant paid to a qualified
12community development entity, as defined under 26 USC 45D (c), for a qualified
13equity investment, as defined under 26 USC 45D (b), at its original issue, multiplied
14by the following percentage:
AB642,7,1615 1. For the taxable years that correspond to the first 3 credit allowance dates,
16as defined under 26 USC 45D (a) (3), 5 percent.
AB642,7,1917 2. For the taxable years that correspond to the 4 credit allowance dates, as
18defined under 26 USC 45D (a) (3), following the credit allowance dates described in
19subd. 1., 6 percent.
AB642,8,1320 (c) Limitations. 1. A partnership, limited liability company, or tax-option
21corporation may not claim the credit under this subsection. The partners of a
22partnership, members of a limited liability company, or shareholders in a tax-option
23corporation may claim the credit under this subsection based on eligible costs
24incurred by the partnership, company, or tax-option corporation. The partnership,
25limited liability company, or tax-option corporation shall calculate the amount of the

1credit which may be claimed by each partner, member, or shareholder and shall
2provide that information to the partner, member, or shareholder. For shareholders
3of a tax-option corporation, the credit may be allocated in proportion to the
4ownership interest of each shareholder. Credits computed by a partnership or
5limited liability company may be claimed in proportion to the ownership interests
6of the partners or members or allocated to partners or members as provided in a
7written agreement among the partners or members that is entered into no later than
8the last day of the taxable year of the partnership or limited liability company, for
9which the credit is claimed. Any partner or member who claims the credit as
10provided under this paragraph shall attach a copy of the agreement, if applicable, to
11the tax return on which the credit is claimed. A person claiming the credit as
12provided under this paragraph is solely responsible for any tax liability arising from
13a dispute with the department of revenue related to claiming the credit.
AB642,8,1914 2. The tax basis of a claimant's interest in a partnership, limited liability
15company, or tax-option corporation shall be reduced, but not below zero, by the
16amount of any credit claimed under this subsection. The credit claimed under this
17subsection shall not be limited to the amount of the adjusted tax basis for the
18claimant's interest in a partnership, limited liability company, or tax-option
19corporation.
AB642,9,220 3. Any claimant who transfers an interest in a partnership, limited liability
21company, or tax-option corporation after the first credit allowance date, as defined
22under 26 USC 45D (b), but before the final credit allowance date for the credit
23allowed under this subsection shall be entitled to claim the credit for the remaining
24credit allowance dates by filing with the claimant's return a written agreement

1between the claimant and the transferee of the interest that specifies that the
2claimant, not the transferee, is the person entitled to claim the credit.
AB642,9,43 (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
4under s. 71.28 (4), applies to the credit under this subsection.
AB642,9,75 2. No credit may be allowed under this subsection unless the claimant includes
6with the claimant's return a copy of the claimant's certification for tax benefits under
7s. 560.2065 (2).
AB642, s. 7 8Section 7. 71.49 (1) (dn) of the statutes is created to read:
AB642,9,99 71.49 (1) (dn) Supplement to federal new markets credit under s. 71.47 (5n).
AB642, s. 8 10Section 8. 76.639 of the statutes is created to read:
AB642,9,16 1176.639 New markets credit. (1) Filing claims. Subject to the limitations
12provided under this section and s. 560.2065, an insurer may claim as a credit against
13the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.27 the amount the insurer
14paid to a qualified community development entity, as defined under 26 USC 45D (c),
15for a qualified equity investment, as defined under 26 USC 45D (b), at its original
16issue, multiplied by the following percentage:
AB642,9,1817 1. For the taxable years that correspond to the first 3 credit allowance dates,
18as defined under 26 USC 45D (a) (3), 5 percent.
AB642,9,2119 2. For the taxable years that correspond to the 4 credit allowance dates, as
20defined under 26 USC 45D (a) (3), following the credit allowance dates described in
21subd. 1., 6 percent.
AB642,9,24 22(2) Limitations. No credit may be allowed under this section unless the insurer
23includes with the insurer's annual return under s. 76.64 a copy of the claimant's
24certification for tax benefits under s. 560.2065 (2).
AB642,10,6
1(3) Carry-forward. If the credit under sub. (2) is not entirely offset against the
2fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
3may be carried forward and credited against those fees for the following 15 years to
4the extent that it is not offset by those fees otherwise due in all the years between
5the year in which the expense was made and the year in which the carry-forward
6credit is claimed.
AB642, s. 9 7Section 9. 560.2065 of the statutes is created to read:
AB642,10,9 8560.2065 Supplement to federal new markets credit. (1) Definitions.
9In this section:
AB642,10,1110 (a) "Credit allowance date" means a credit allowance date as defined under 26
11USC 45D
(a) (3).
AB642,10,1312 (b) "Qualified community development entity" means a qualified community
13development entity as defined under 26 USC 45D (c).
AB642,10,1514 (c) "Qualified equity investment" means a qualified equity investment as
15defined under 26 USC 45D (b).
AB642,10,17 16(2) Certification. The department may certify a person to receive tax benefits
17under this section if all of the following apply:
AB642,10,2018 (a) The person applies to the department for certification under this section and
19includes with the application documentation from the federal internal revenue
20service indicating that all of the following apply:
AB642,10,2221 1. The person made a qualified equity investment in a qualified community
22development entity described in subd. 2.
AB642,10,2523 2. The qualified community development entity's primary mission is serving,
24or providing investment capital for, low-income communities or low-income persons
25in this state.
AB642,11,2
13. The person is eligible to receive new markets tax credits under 26 USC 45D
2for the qualified equity investment described in subd. 1.
AB642,11,33 (b) The department verifies the information submitted under par. (a).
AB642,11,8 4(3) Eligibility. A person certified under sub. (2) is eligible to receive tax credits
5under ss. 71.07 (5n), 71.28 (5n), 71.47 (5n), and 76.639 in each taxable year in which
6a credit allowance date falls if the person continues to hold the qualified equity
7investment described in sub. (2) (a) 1. in the taxable year in which the credit is
8claimed.
AB642,11,10 9(4) Duties of the department. (a) The department of commerce shall notify
10the department of revenue of all of the following:
AB642,11,1211 1. Every certification issued under sub. (2) and the date on which any such
12certification is revoked.
AB642,11,1513 2. The maximum amount of the tax credits under ss. 71.07 (5n), 71.28 (5n),
1471.47 (5n), and 76.639 that a person certified under sub. (2) may claim in each taxable
15year in which a credit allowance date falls.
AB642,11,1916 (b) Annually, the department shall verify to the department of revenue that
17each person certified under sub. (2) is the holder of a qualified equity investment in
18the taxable year for which the person files a claim under s. 71.07 (5n), 71.28 (5n),
1971.47 (5n), or 76.639.
AB642,11,2120 (c) The department shall promulgate rules to administer this program,
21including all of the following:
AB642,11,2322 1. Deadlines for the submission of an application for certification under this
23section.
AB642,11,2524 2. The period for review of applications submitted under this section, which
25period may not exceed 45 days.
AB642,12,2
13. Criteria for reviewing and prioritizing applications for certification under
2this section.
AB642,12,53 (d) In consultation with the department of revenue, the department of
4commerce may promulgate rules governing the recapture of tax benefits awarded to
5a person certified under this section.
AB642, s. 10 6Section 10. Nonstatutory provisions.
AB642,12,107 (1) (a) The department of commerce shall submit in proposed form the rules
8required under section 560.2065 (4) (c) of the statutes, as created by this act, to the
9legislative council staff under section 227.15 (1) of the statutes no later than the first
10day of the 4th month beginning after the effective date of this paragraph.
AB642,12,1911 (b) Using the procedure under section 227.24 of the statutes, the department
12of commerce may promulgate rules required under section 560.2065 (4) (c) of the
13statutes, as created by this act, for the period before the effective date of the rules
14submitted under paragraph (a), but not to exceed the period authorized under section
15227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b),
16and (3) of the statutes, the department is not required to provide evidence that
17promulgating a rule under this paragraph as an emergency rule is necessary for the
18preservation of the public peace, health, safety, or welfare and is not required to
19provide a finding of emergency for a rule promulgated under this paragraph.
AB642, s. 11 20Section 11. Initial applicability.
AB642,12,2121 (1) This act first applies to taxable years beginning on January 1, 2010.
AB642,12,2222 (End)
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