AB75: Bill Text

AB75,996,24 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, 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) (bb).

AB75, s. 1721 Section 1721. 71.47 (3r) of the statutes is created to read:

AB75,997,2 71.47 (3r) Meat processing facility investment credit. (a) Definitions. In this subsection:

AB75,997,3 1. "Claimant" means a person who files a claim under this subsection.

AB75,997,5 2. "Meat processing" means processing livestock into meat products or processing meat products for sale commercially.

AB75,997,10 3. "Meat processing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for meat processing, including the following, if used exclusively for meat processing and if acquired and placed in service in this state during taxable years that begin after December 31, 2008, and before January 1, 2017:

AB75,997,12 a. Building construction, including livestock handling, product intake, storage, and warehouse facilities.

AB75,997,13 b. Building additions.

AB75,997,15 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing, and waste facilities.

AB75,997,16 d. Livestock intake and storage equipment.

AB75,997,19 e. Processing and manufacturing equipment, including cutting equipment, mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking equipment, pipes, motors, pumps, and valves.

AB75,997,21 f. Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying, and product movement equipment.

AB75,997,22 g. Warehouse equipment, including storage and curing racks.

AB75,997,25 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.

AB75,998,4 i. Computer software and hardware used for managing the claimant's meat processing operation, including software and hardware related to logistics, inventory management, production plant controls, and temperature monitoring controls.

AB75,998,6 4. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB75,998,12 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.209, for taxable years beginning after December 31, 2008, and before January 1, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for meat processing modernization or expansion related to the claimant's meat processing operation.

AB75,998,15 (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.

AB75,998,17 2. The aggregate amount of credits that a claimant may claim under this subsection is $200,000.

AB75,998,20 3. a. The maximum amount of the credits that may be allocated under this subsection and ss. 71.07 (3r) and 71.28 (3r) in fiscal year 2009-10 is $300,000, as allocated under s. 560.209.

AB75,998,23 b. The maximum amount of the credits that may be allocated under this subsection and ss. 71.07 (3r) and 71.28 (3r) in fiscal year 2010-11, and in each fiscal year thereafter, is $700,000, as allocated under s. 560.209.

AB75,999,7 4. 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.

AB75,999,11 5. If 2 or more persons own and operate the meat processing 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 meat processing operation shall not exceed $200,000.

AB75,999,14 6. No credit may be allowed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's credit certification and allocation under s. 560.209.

AB75,999,16 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75,999,21 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, 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) (bd).

AB75, s. 1722 Section 1722. 71.47 (4m) of the statutes is created to read:

AB75,999,25 71.47 (4m) Super research and development credit. (a) Definition. In this subsection, "qualified research expenses" means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant for research conducted in this state for the taxable year and except that "qualified research expenses" do not include compensation used in computing the credits under subs. (1dj) and (1dx).

AB75,1000,8 (b) Credit. Subject to the limitations provided under this subsection, for taxable years beginning on or after January 1, 2011, a corporation may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to the amount of qualified research expenses paid or incurred by the corporation in the taxable year that exceeds the amount calculated as follows:

AB75,1000,11 1. Determine the average amount of the qualified research expenses paid or incurred by the corporation in the 3 taxable years immediately preceding the taxable year for which a credit is claimed under this subsection.

AB75,1000,12 2. Multiply the amount determined under subd. 1. by 1.25.

AB75,1000,14 (c) Limitations. Section 71.28 (4) (b) to (d) and (i), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75,1000,16 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB75,1000,22 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB75, s. 1723 Section 1723. 71.47 (5b) (c) 1. of the statutes is repealed.

AB75, s. 1724 Section 1724. 71.47 (5b) (c) 2. of the statutes is renumbered 71.47 (5b) (c).

AB75, s. 1725 Section 1725. 71.47 (5b) (d) 3. of the statutes is created to read:

AB75,1001,5 71.47 (5b) (d) 3. For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB75, s. 1726 Section 1726. 71.47 (5f) (e) of the statutes is created to read:

AB75,1001,10 71.47 (5f) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2008. Credits under par. (b) 1. for taxable years beginning before January 1, 2009, may be carried forward to taxable years beginning after December 31, 2008.

AB75, s. 1727 Section 1727. 71.47 (5h) (e) of the statutes is created to read:

AB75,1001,15 71.47 (5h) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2008. Credits under this subsection for taxable years beginning before January 1, 2009, may be carried forward to taxable years beginning after December 31, 2008.

AB75, s. 1728 Section 1728. 71.47 (5i) (b) of the statutes is amended to read:

AB75,1001,23 71.47 (5i) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009 2011, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1).

AB75, s. 1729 Section 1729 . 71.47 (6) (c) of the statutes is amended to read:

AB75,1002,6 71.47 (6) (c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began and that the rehabilitation was approved by the secretary of the interior under 36 CFR 67.6.

AB75, s. 1730 Section 1730. 71.47 (6) (cm) of the statutes is created to read:

AB75,1002,9 71.47 (6) (cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.

AB75, s. 1731 Section 1731. 71.47 (6) (f) of the statutes is amended to read:

AB75,1003,10 71.47 (6) (f) A partnership, limited liability company , or tax-option corporation may not claim the credit under this subsection. The individual partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation, in proportion to the ownership interest of each partner, member or shareholder. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.

AB75, s. 1732 Section 1732. 71.47 (6) (g) of the statutes is created to read:

AB75,1003,15 71.47 (6) (g) 1. If a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.

AB75,1003,20 2. Notwithstanding s. 71.77, the department may adjust or disallow the credit claimed under this subsection within 4 years after the date that the state historical society notifies the department that the expenditures for which the credit was claimed do not comply with the standards for certification promulgated under s. 44.02 (24).

AB75, s. 1733 Section 1733. 71.47 (8r) of the statutes is created to read:

AB75,1003,23 71.47 (8r) Beginning farmer and farm asset owner tax credit. (a) Definitions. In this subsection:

AB75,1003,25 1. "Agricultural assets" means machinery, equipment, facilities, or livestock that is used in farming.

AB75,1004,2 2. "Beginning farmer" means a person who meets the conditions specified in s. 93.53 (2).

AB75,1004,4 3. "Claimant" means an established farmer who files a claim under this subsection.

AB75,1004,6 4. "Established farmer" means a person who meets the conditions specified in s. 93.53 (3).

AB75,1004,8 5. "Farming" has the meaning given in section 464 (e) (1) of the Internal Revenue Code.

AB75,1004,11 6. "Lease amount" is the amount of the cash payment paid by a beginning farmer to an established farmer each year for leasing the established farmer's agricultural assets.

AB75,1004,20 (b) Filing claims. For taxable years beginning after December 31, 2010, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 15 percent of the lease amount received by the claimant in the taxable year. If the allowable amount of the claim exceeds the taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (en).

AB75,1004,23 (c) Limitations. 1. A claimant may only claim the credit under this subsection for the first 3 years of any lease of the claimant's agricultural assets to a beginning farmer.

AB75,1004,25 2. Along with a claimant's income tax return, a claimant shall submit to the department a certificate of eligibility provided under s. 93.53 (5) (c).

AB75,1005,8 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 the amounts received by the entities 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.

AB75,1005,10 (d) Administration. Subsection (4) (e), (g), and (h), as it applies to the credit under that sub. (4), applies to the credit under this subsection.

AB75, s. 1734 Section 1734. 71.49 (1) (db) of the statutes is created to read:

AB75,1005,12 71.49 (1) (db) Super research and development credit under s. 71.47 (4m).

AB75, s. 1735 Section 1735. 71.49 (1) (em) of the statutes is renumbered 71.49 (1) (eh).

AB75, s. 1736 Section 1736. 71.49 (1) (ema) of the statutes is created to read:

AB75,1005,15 71.49 (1) (ema) Economic development tax credit under s. 71.47 (1dy).

AB75, s. 1737 Section 1737. 71.49 (1) (emb) of the statutes is renumbered 71.49 (1) (ei).

AB75, s. 1738 Section 1738. 71.49 (1) (en) of the statutes is renumbered 71.49 (1) (ej).

AB75, s. 1739 Section 1739. 71.49 (1) (eo) of the statutes is renumbered 71.49 (1) (ek).

AB75, s. 1740 Section 1740. 71.49 (1) (eom) of the statutes is renumbered 71.49 (1) (eL).

AB75, s. 1741 Section 1741. 71.49 (1) (f) of the statutes is amended to read:

AB75,1006,2 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), job tax credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), enterprise zone jobs credit under s. 71.47 (3w), film production services credit under s. 71.47 (5f) (b) 2., beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

AB75, s. 1742 Section 1742. 71.54 (2m) of the statutes is created to read:

AB75,1006,16 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years beginning after December 31, 2009, the dollar amount for the maximum household income under sub. (1) (f) 3. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. The amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB75,1006,22 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) 2. such that, as a claimant's income increases from the threshold income under sub. (1) (f) 1. and 2., to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.

AB75, s. 1743 Section 1743. 71.57 of the statutes is amended to read:

AB75,1007,2 71.57 Purpose. The purpose of this subchapter ss. 71.58 to 71.61 is to provide credit to owners of farmland which is subject to agricultural use restrictions, through a system of income or franchise tax credits and refunds and appropriations from the general fund.

AB75, s. 1744 Section 1744. 71.58 (intro.) of the statutes is amended to read:

AB75,1007,4 71.58 Definitions. (intro.) In this subchapter ss. 71.57 to 71.61:

AB75, s. 1745 Section 1745. 71.58 (1) (intro.) of the statutes is amended to read:

AB75,1007,8 71.58 (1) (intro.) "Claimant" means an owner of farmland, as defined in s. 91.01 (9), 2007 stats., of farmland, domiciled in this state during the entire year for which a credit under this subchapter ss. 71.57 to 71.61 is claimed, except as follows:

AB75, s. 1746 Section 1746. 71.58 (1) (b) of the statutes is amended to read:

AB75,1007,13 71.58 (1) (b) If any person in a household has claimed or will claim credit under subch. VIII, all persons from that household are ineligible to claim any credit under this subchapter ss. 71.57 to 71.61 for the year to which the credit under subch. VIII pertained.

AB75, s. 1747 Section 1747. 71.58 (1) (d) of the statutes is amended to read: