Analysis by the Legislative Reference Bureau
This bill provides an income and franchise tax credit for 10 percent of the
amount that a person pays in the taxable year for food processing plant and food
warehouse modernization or expansion related to the person's food processing
operation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB550, s. 1 7Section 1. 20.835 (2) (bc) of the statutes is created to read:
SB550,2,3
120.835 (2) (bc) Food processing plant and food warehouse investment credit. A
2sum sufficient to make the payments under ss. 71.07 (3rm), 71.28 (3rm), and 71.47
3(3rm).
SB550, s. 2 4Section 2. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Act
528
, is amended to read:
SB550,2,116 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
7(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3rm) (3p), (3q), (3r),
8(3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), and (8r) and not passed through by a
9partnership, limited liability company, or tax-option corporation that has added that
10amount to the partnership's, company's, or tax-option corporation's income under s.
1171.21 (4) or 71.34 (1k) (g).
SB550, s. 3 12Section 3. 71.07 (3rm) of the statutes is created to read:
SB550,2,1413 71.07 (3rm) Food processing plant and food warehouse investment credit.
14(a) Definitions. In this subsection:
SB550,2,1515 1. "Claimant" means a person who files a claim under this subsection.
SB550,2,1816 2. "Food processing plant" has the meaning given in s. 97.29 (1) (h), except that
17it does not include dairy plants licensed under s. 97.20 or meat establishments
18licensed under s. 97.42.
SB550,2,1919 3. "Food warehouse" has the meaning given in s. 97.27 (1) (b).
SB550,2,2520 4. "Food processing plant or food warehouse modernization or expansion"
21means constructing, improving, or acquiring buildings or facilities, or acquiring
22equipment, for food processing or food warehousing, including the following, if used
23exclusively for food processing or food warehousing and if acquired and placed in
24service in this state during taxable years that begin after December 31, 2009, and
25before January 1, 2017:
SB550,3,1
1a. Food intake, handling, storage, and warehouse facilities.
SB550,3,22 b. Building additions.
SB550,3,43 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing,
4and waste facilities.
SB550,3,65 d. Installing energy savings equipment or equipment that converts waste to
6energy.
SB550,3,77 e. Food or raw material intake and storage equipment.
SB550,3,98 f. Processing and manufacturing equipment, including vats, cookers, freezers,
9pipes, motors, pumps, and valves.
SB550,3,1110 g. Packaging and handling equipment, including cleaning, sealing, bagging,
11boxing, labeling, conveying, and product movement equipment.
SB550,3,1312 h. Warehouse equipment, including storage racks and loading and unloading
13equipment.
SB550,3,1614 i. Waste treatment and waste management equipment, including tanks,
15blowers, separators, dryers, digesters, and equipment to produce energy, fuel, or
16industrial products.
SB550,3,2017 j. Computer software or hardware for managing the claimant's food processing
18or food warehousing operation, including software and hardware related to logistics,
19inventory management, production plant controls, and temperature monitoring
20controls.
SB550,3,2221 5. "Used exclusively" means used to the exclusion of all other uses except for
22use not exceeding 5 percent of total use.
SB550,4,423 (b) Filing claims. Subject to the limitations provided in this subsection and s.
24506.2056, for taxable years beginning after December 31, 2009, and before January
251, 2017, a claimant may claim as a credit against the tax imposed under ss. 71.02 and

171.08, up to the amount of the tax, an amount equal to 10 percent of the amount the
2claimant paid in the taxable year for food processing or food warehousing
3modernization or expansion related to the operation of the claimant's food processing
4plant or food warehouse.
SB550,4,75 (c) Limitations. 1. No credit may be allowed under this subsection for any
6amount that the claimant paid for expenses described under par. (b) that the
7claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
SB550,4,98 2. The aggregate amount of credits that a claimant may claim under this
9subsection is $200,000.
SB550,4,1210 3. a. The maximum amount of the credits that may be allocated under this
11subsection and ss. 71.28 (3rm) and 71.47 (3rm) in fiscal year 2009-10 is $600,000,
12as allocated under s. 560.2056.
SB550,4,1513 b. The maximum amount of the credits that may be allocated under this
14subsection and ss. 71.28 (3rm) and 71.47 (3rm) in fiscal year 2010-11, and in each
15fiscal year thereafter, is $700,000, as allocated under s. 560.2056.
SB550,4,2416 4. Partnerships, limited liability companies, and tax-option corporations may
17not claim the credit under this subsection, but the eligibility for, and the amount of,
18the credit are based on their payment of expenses under par. (b), except that the
19aggregate amount of credits that the entity may compute shall not exceed $200,000.
20A partnership, limited liability company, or tax-option corporation shall compute
21the amount of credit that each of its partners, members, or shareholders may claim
22and shall provide that information to each of them. Partners, members of limited
23liability companies, and shareholders of tax-option corporations may claim the
24credit in proportion to their ownership interest.
SB550,5,5
15. If 2 or more persons own and operate the food processing plant or food
2warehouse, each person may claim a credit under par. (b) in proportion to his or her
3ownership interest, except that the aggregate amount of the credits claimed by all
4persons who own and operate the food processing operation shall not exceed
5$200,000.
SB550,5,86 6. No credit may be allowed under this subsection unless the claimant submits
7with the claimant's return a copy of the claimant's credit certification and allocation
8under s. 560.2056.
SB550,5,109 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
10credit under s. 71.28 (4), applies to the credit under this subsection.
SB550,5,1511 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
12due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due
13shall be certified by the department of revenue to the department of administration
14for payment by check, share draft, or other draft drawn from the appropriation
15account under s. 20.835 (2) (bc).
SB550, s. 4 16Section 4. 71.08 (1) (intro.) of the statutes, as affected by 2009 Wisconsin Act
1728
, is amended to read:
SB550,6,218 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
19couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
20ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
21(3q), (3r), (3rm), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (6), (6e), (8r), and
22(9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and
23(3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and
24(3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other states under
25s. 71.07 (7), is less than the tax under this section, there is imposed on that natural

1person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02,
2an alternative minimum tax computed as follows:
SB550, s. 5 3Section 5. 71.10 (4) (i) of the statutes, as affected by 2009 Wisconsin Act 28,
4is amended to read:
SB550,6,165 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
6preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
7beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
8credit under s. 71.07 (3m),, dairy manufacturing facility investment credit under s.
971.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
10credit under s. 71.07 (3r), food processing plant and food warehouse investment
11credit under s. 71.07 (3rm),
film production services credit under s. 71.07 (5f), film
12production company investment credit under s. 71.07 (5h), veterans and surviving
13spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s.
1471.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r),
15earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09,
16and taxes withheld under subch. X.
SB550, s. 6 17Section 6. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
18amended to read:
SB550,6,2219 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
20(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3s), (3t),
21(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), and (8r) and passed through to partners shall
22be added to the partnership's income.
SB550, s. 7 23Section 7. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 28,
24is amended to read:
SB550,7,6
171.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
2(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), and (8r) and not passed through
4by a partnership, limited liability company, or tax-option corporation that has added
5that amount to the partnership's, limited liability company's, or tax-option
6corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB550, s. 8 7Section 8. 71.28 (3rm) of the statutes is created to read:
SB550,7,98 71.28 (3rm) Food processing plant and food warehouse investment credit.
9(a) Definitions. In this subsection:
SB550,7,1010 1. "Claimant" means a person who files a claim under this subsection.
SB550,7,1311 2. "Food processing plant" has the meaning given in s. 97.29 (1) (h), except that
12it does not include dairy plants licensed under s. 97.20 or meat establishments
13licensed under s. 97.42.
SB550,7,1414 3. "Food warehouse" has the meaning given in s. 97.27 (1) (b).
SB550,7,2015 4. "Food processing plant or food warehouse modernization or expansion"
16means constructing, improving, or acquiring buildings or facilities, or acquiring
17equipment, for food processing or food warehousing, including the following, if used
18exclusively for food processing or food warehousing and if acquired and placed in
19service in this state during taxable years that begin after December 31, 2009, and
20before January 1, 2017:
SB550,7,2121 a. Food intake, handling, storage, and warehouse facilities.
SB550,7,2222 b. Building additions.
SB550,7,2423 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing,
24and waste facilities.
SB550,8,2
1d. Installing energy savings equipment or equipment that converts waste to
2energy.
SB550,8,33 e. Food or raw material intake and storage equipment.
SB550,8,54 f. Processing and manufacturing equipment, including vats, cookers, freezers,
5pipes, motors, pumps, and valves.
SB550,8,76 g. Packaging and handling equipment, including cleaning, sealing, bagging,
7boxing, labeling, conveying, and product movement equipment.
SB550,8,98 h. Warehouse equipment, including storage racks and loading and unloading
9equipment.
SB550,8,1210 i. Waste treatment and waste management equipment, including tanks,
11blowers, separators, dryers, digesters, and equipment to produce energy, fuel, or
12industrial products.
SB550,8,1613 j. Computer software or hardware for managing the claimant's food processing
14or food warehousing operation, including software and hardware related to logistics,
15inventory management, production plant controls, and temperature monitoring
16controls.
SB550,8,1817 5. "Used exclusively" means used to the exclusion of all other uses except for
18use not exceeding 5 percent of total use.
SB550,8,2519 (b) Filing claims. Subject to the limitations provided in this subsection and s.
20506.2056, for taxable years beginning after December 31, 2009, and before January
211, 2017, a claimant may claim as a credit against the tax imposed under s. 71.23, up
22to the amount of the tax, an amount equal to 10 percent of the amount the claimant
23paid in the taxable year for food processing or food warehousing modernization or
24expansion related to the operation of the claimant's food processing plant or food
25warehouse.
SB550,9,3
1(c) Limitations. 1. No credit may be allowed under this subsection for any
2amount that the claimant paid for expenses described under par. (b) that the
3claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
SB550,9,54 2. The aggregate amount of credits that a claimant may claim under this
5subsection is $200,000.
SB550,9,86 3. a. The maximum amount of the credits that may be allocated under this
7subsection and ss. 71.07 (3rm) and 71.47 (3rm) in fiscal year 2009-10 is $600,000,
8as allocated under s. 560.2056.
SB550,9,119 b. The maximum amount of the credits that may be allocated under this
10subsection and ss. 71.07 (3rm) and 71.47 (3rm) in fiscal year 2010-11, and in each
11fiscal year thereafter, is $700,000, as allocated under s. 560.2056.
SB550,9,2012 4. Partnerships, limited liability companies, and tax-option corporations may
13not claim the credit under this subsection, but the eligibility for, and the amount of,
14the credit are based on their payment of expenses under par. (b), except that the
15aggregate amount of credits that the entity may compute shall not exceed $200,000.
16A partnership, limited liability company, or tax-option corporation shall compute
17the amount of credit that each of its partners, members, or shareholders may claim
18and shall provide that information to each of them. Partners, members of limited
19liability companies, and shareholders of tax-option corporations may claim the
20credit in proportion to their ownership interest.
SB550,9,2521 5. If 2 or more persons own and operate the food processing plant or food
22warehouse, each person may claim a credit under par. (b) in proportion to his or her
23ownership interest, except that the aggregate amount of the credits claimed by all
24persons who own and operate the food processing operation shall not exceed
25$200,000.
SB550,10,3
16. No credit may be allowed under this subsection unless the claimant submits
2with the claimant's return a copy of the claimant's credit certification and allocation
3under s. 560.2056.
SB550,10,54 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
5under sub. (4), applies to the credit under this subsection.
SB550,10,106 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
7due under s. 71.23, the amount of the claim not used to offset the tax due shall be
8certified by the department of revenue to the department of administration for
9payment by check, share draft, or other draft drawn from the appropriation account
10under s. 20.835 (2) (bc).
SB550, s. 9 11Section 9. 71.30 (3) (f) of the statutes, as affected by 2009 Wisconsin Act 28,
12is amended to read:
SB550,10,2013 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
14farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
15investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
16facility investment credit under s. 71.28 (3r), food processing plant and food
17warehouse investment credit under s. 71.28 (3rm),
enterprise zone jobs credit under
18s. 71.28 (3w), film production services credit under s. 71.28 (5f), film production
19company investment credit under s. 71.28 (5h), beginning farmer and farm asset
20owner tax credit under s. 71.28 (8r), and estimated tax payments under s. 71.29.
SB550, s. 10 21Section 10. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 28,
22is amended to read:
SB550,11,223 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
24corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),

1(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
2and (8r) and passed through to shareholders.
SB550, s. 11 3Section 11. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act
428
, is amended to read:
SB550,11,115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3w),
7(5e), (5f), (5g), (5h), (5i), (5j), (5k), and (8r) and not passed through by a partnership,
8limited liability company, or tax-option corporation that has added that amount to
9the partnership's, limited liability company's, or tax-option corporation's income
10under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
11(1), (3), (3t), (4), (4m), and (5).
SB550, s. 12 12Section 12. 71.47 (3rm) of the statutes is created to read:
SB550,11,1413 71.47 (3rm) Food processing plant and food warehouse investment credit.
14(a) Definitions. In this subsection:
SB550,11,1515 1. "Claimant" means a person who files a claim under this subsection.
SB550,11,1816 2. "Food processing plant" has the meaning given in s. 97.29 (1) (h), except that
17it does not include dairy plants licensed under s. 97.20 or meat establishments
18licensed under s. 97.42.
SB550,11,1919 3. "Food warehouse" has the meaning given in s. 97.27 (1) (b).
SB550,11,2520 4. "Food processing plant or food warehouse modernization or expansion"
21means constructing, improving, or acquiring buildings or facilities, or acquiring
22equipment, for food processing or food warehousing, including the following, if used
23exclusively for food processing or food warehousing and if acquired and placed in
24service in this state during taxable years that begin after December 31, 2009, and
25before January 1, 2017:
SB550,12,1
1a. Food intake, handling, storage, and warehouse facilities.
SB550,12,22 b. Building additions.
SB550,12,43 c. Upgrades to utilities, including water, electric, heat, refrigeration, freezing,
4and waste facilities.
SB550,12,65 d. Installing energy savings equipment or equipment that converts waste to
6energy.
SB550,12,77 e. Food or raw material intake and storage equipment.
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